Natural Products Contribute 41% To Personal-Care Market: Nielsen

Ayurvedic and herbal products now contribute 41 percent to the Rs 45,000-crore personal care market as demand continues to grow, according to market researcher Nielsen India.

Naturals grew 6.6 percent last year to become a Rs 18,500-crore market, twice the pace compared to regular products, Nielsen said in a report. Homegrown companies contributed the most to the growth as 79 percent of natural brands are made by Indian-origin firms while multinationals contribute the rest, it said.

Growth, however, was slower than 9.4 percent in 2015, Nielsen said. Excluding the toilet soap category, the market grew at 10.2 percent last year. And the demand largely came from urban centres at 4.8 times compared to the non-natural products.

Chemists and modern-trade channels drove consumption of ayurvedic and herbal products. Sales rose 19.4 percent in value terms through modern trade and chemists, the report said. Natural products are also 12 percent cheaper than other personal care items.

Maximum demand comes from Tamil Nadu, Karnataka, Kerala, Telangana, Andhra Pradesh, Maharashtra, Madhya Pradesh and Punjab. The opportunity lies in West Bengal, Delhi and Uttar Pradesh as they contribute lower compared to the national average but demand is growing at a faster pace, the report said.