Increasing personal care products demand driving Indian surfactants market: Frost & Sullivan

Growing consumerism is spurring demand for personal care products, which in turn is driving related surfactants market in India, according to Frost & Sullivan’s new report, ‘Trends and opportunities in surfactants for personal care’. The Indian surfactants market for personal care hinges largely on the expanding middle-class consumer population in the country. Specialty surfactants used in the personal, home care and industrial segments has made a foray into the Indian market and will continue to drive sales in these segments, where product innovation is the cornerstone of growth.
 
Frost & Sullivan’s new study finds that the Indian surfactants market earned revenues of $ 2,278 million in 2013 and estimates this to grow at 13% annually to reach $3,748 million in 2017, approximately. Meanwhile, the personal care surfactants market is estimated to grow at 23% from 2013 till 2017 and attain $547 million in revenue. This study covers the Indian surfactants market in general and the personal care surfactants segment in particular.
 
India has a large market for niche beauty products, with cosmetics companies exclusively marketing oil-free fairness face washes and creams. Surfactant-based face washes, hair creams and gels are increasingly replacing traditional products because of ease in using the product, its cleansing ability, and ease in customising the product. For example, shampoos and conditioners are now customised for various hair types. With fast moving consumer goods (FMCG) companies riding on these innovations to penetrate the potentially enormous personal care market in India with approximately 750 million and growing users, new avenues for the use of surfactants are expected to open up. The average Indian consumer has a wider product and price bracket to choose from, which augurs well for the surfactants market for personal care.
 
“Multifunctional surfactants are likely to gain widespread acceptance in the Indian consumer segment, especially in the home care segment. Non-ionic surfactants with their inherent bio-friendly properties and degradability are also expected to make headway in the Indian market over the next four years,” said Frost & Sullivan in a press release.
 
However, being a price-sensitive market, escalating raw material costs and the subsequent increase in product prices may dampen consumer interest in expensive product innovations, and may impede new product development in this sector. Manufacturers must deliver the best quality at the lowest price to establish a foothold in this domain. Product innovation that focuses on niche uses and convenience (like the use of multifunctional surfactants - a single surfactant to cater to multiple domestic applications) is vital for the growth of this industry. Consumers are becoming more perceptive towards value addition, hence anticipating consumer needs and broadening the application base of surfactants can expand the bandwidth for growth in the Indian market.