Current Indian Scenario of Cosmetics and Personal Care Products: Authentic Clinically Tested Product Point of View for Authenticity

Size and Growth Trends in the Indian Domestic Cosmetic and Personal Care Industry

The Indian cosmetics and personal care industry is one of the fastest growing consumer products sectors in India with a very strong potential for domestic and foreign companies. The Indian personal care and cosmetics sector has shown continued strong growth, with increasing shelf space in retail stores, online E-com spaces, boutiques and relevant D2C way in India. Many start ups came in market since last 4-5 years and many more add up in market everyday which increase the deployment of many new concepts as well as new products in market. As per Goldstein Market Intelligence, India cosmetics market is valued at nearly USD 11.16 billion in 2017 and is anticipated to grow at a Compound Annual Growth Rate (CAGR) of 5.91% during the forecast period 2017-2030. Furthermore, it is estimated annual retail sale of cosmetics as well as personal care products is growing in the range of 15-20% annually, thus placing the domestic market demands in India as one of the fastest growing across the world. Over the past 5 years total demand has grown by 60% or more. With scenario many companies due to wide scope as well as strong competition for similar lined concept and product strategies search for the short-term launch of products as well as easy way to lunch ready to deploy products from the third-party contract manufacturer / OEM / ODM based set ups without prior studies laid by FDA/ BIS guidelines with small time span. Though, the improved quality of life in India instantly boosted personal care and cosmetics industry the question of authentic product remains in mind of consumer. In the race of the NPD and lunches many small startups not follow or exploits the guidelines laid of regulatory bodies as well as not following D&C Act 1945 guidelines.

New trends and opportunities ahead

Emphasis on personal care, digital acceleration and health and safety rose to prominence in India over the course of 2020 and are expected to have an effect post 2021 as well. Demand continues to grow for products specifically designed around skin health, intimate care, color cosmetics, wellness, and sustainability. According to my observation, companies in the sector will need to rethink their products following a more holistic approach. This is a key topic for the skincare sector: not only are traditional treatments, indigenous Ayurvedic culture increasingly prevalent, products that advertise the positive effects of natural origin and organic are also seeing increased sales. There is a lot of room to explore the positive effects that active ingredients in cosmetic products offer for multi-perspective application in personal care, cosmaceuticals, and wellness space. Many natural and herbal trends are booming in sector. The skin dermaceuticals, personal care, and intimate hygiene as well as color and make up product adopt to make out of the natural and authentic source. Marketing of such successful consumer products, businesses in today’s world must have a sophisticated E-commerce infrastructure that can satisfy meaningfully increased demand and associated fulfillment. Overall scenario is showing tremendous growth of segment as people are shifted from conventional retail purchase to the direct to consumer mode (D2C) where smaller brands with better products will fulfill the consumer needs by direct consumer centric approach new product development (NPD) with quality and cost effective customized product as per needs of the consumers.

Very Fast space New Product Development (NPD) is boon or bane?

New Product Development in the sense of R&D in science and philosophy, is a paradigm of a distinct set of concepts or thought patterns, including theories, research methods, postulates, and standards for what constitutes legitimate contributions to a field which passes through the particular set processes, phases and timelines of developments. NPD is boon as it is needed to cater the competition of current market because of new ideas we come with new innovative products and solutions. The huge competition in the markets leads to huge NPD but along such tremendous speed of products development some people (Some D2C brands) lapse some stages in developments and make shortcuts to sustain in the marathon of competition. Meaning even though the development of new products ongoing but that came from shortcut ways which scientifically have not passes through the phases of product development which actually has to follow. This approach leads to faulty products which impact users badly and off course brand image also. Many D2C brands now come up with the new products which are not development by them but by the third party or contract manufactures which are also on prompt basis customized and developed quickly without passing the stages of development. Their such fast space NPD with shortcuts leads and created huge dirt of products which are not authentic and are duplicate or fake or efficacious products which consider as bane to end users.

Indian Cosmetic and Personal Care Regulations: Strict or Relaxed?

The Central Drugs Standard Control Organization (CDSCO) is constructed to govern the activities under the Drugs & Cosmetics Act (D & C Act) ,1940 and rules 1945 have entrusted various responsibilities to central & state regulators for regulation of drugs & cosmetics. It envisages uniform implementation of the provisions of the Act & Rules made there under for ensuring the safety, rights and well being of the patients by regulating the drugs and cosmetics products. Under the D & C Act, CDSCO is responsible for approval of Drugs, Conduct of Clinical Trials, laying down the standards for Drugs, control over the quality of imported Drugs in the country and coordination of the activities of State Drug Control Organizations by providing expert advice with a view of bring about the uniformity in the enforcement of the Drugs and Cosmetics Act. Further CDSCO along with state regulators, is jointly responsible for grant of licenses for drugs, cosmetic and other critical products for human use. Under the provisions of D & C Act, 1940 and Rules made there under, the manufacture of cosmetics is regulated under a system of inspection and licensing by the State Licensing Authorities appointed by the respective State Governments, while the import of cosmetics is regulated under a system of registration by the Central Licensing Authority appointed by the Central Government. The Drugs Controller General (India) functions as the Central Licensing Authority who grants the Import Registration Certificate and regulates the import of cosmetics into India vide Gazette notification G.S.R 763(E) under the provisions of Drugs and Cosmetics Act, 1940. Under amended D&C Act regulation each state FDA (Food and Drug Administration) enforce the Food, Drug, and Cosmetic Act fairly, upholds safety standards, and protects consumers and assure that each product are in compliance with the law and FDA regulation; non-compliance is identified and corrected. Regulatory decisions are based on a strong, legal, scientific and analytical base. As compare to USA, EU, Japan, AU and other international regulatory authorities Indian regulations are relaxed when it comes to cosmetics and personal care segment. Also, due to one thing that all knows that is corruption now a days new product licenses are approved without any detailed checks of fulfillment of studies and testing protocols this has foster few brand companies to come with some products which are approved not up to level of consumer satisfaction this leads to bane again. Also, Non-uniform licensing approvals across various states. Lack of clarity on approval procedures and no committed timelines for approval. Even within a single state ambiguity on approval process is present. Therefore, needs very strict reforms in this area for better products for better society.

Authenticity: It is not just word but current urgent needs to prove it.

Any product said to be authentic when it confers the quality as per said standard of manufacturing, distribution and testing as per the regulatory guidelines set by licensing authorizes. Major 4 points to approve authentic product First what product we purchase as per what overall seller said or claims regarding to overall product (Ingredient, Formula, Clinical Claim, Packaging, Costing, Stability, Shelf life and Safety) , Second is what content of product is in terms of formula with its ingredients from authentic sources, Third is stable packaging system fitment as per the product attributes and Forth one is very important aspects clinical efficacy of product for targeted end application or its benefits. When it comes to Indian consumer presently consumers are becoming more conscious about their skin, hair and intimate hygiene to look young and bright, and thereby increasing demand for various types of products in this space. So, increasing needs thereby increasing demands of new products by consumer. So, looking to scenario currently few new brands took advantage of consumer needs with strong advertisement and marketing of product with fake content goof they literally bullying consumer. Under fake marketing goofs they are selling only stories not products in D2C space and this is also due to non-vigilance of consumer about product's technicalities. Therefore, looking to this scenario there is urgent needs to rectify this system with strict regulations which currently present that control such malpractice. Currently, there is a need to harmonize the rules regarding the stability, labeling and safety issues. Most importantly, cosmetic regulations need to be harmonized for safety and quality requirements more better, so that society can be precluded from being exposed to hormone disruptors, carcinogens and other toxins. Pace of Bureau of Indian Standards (BIS) Standards development/revision is not in line with technological progress which need a faster mechanism to amend the standard to keep pace with newer technology. Also, needs to hormonise the multiple and complex regulations under different bodies. In this way currently many brand are only sugar coated marketing of products only in term of efficacy they fails to when claims substantiation considered in such cases stringent action has to take by the regulatory authority is needed.

Basic Case study: Aloe-Vera Gel Product for moisturization /anti-aging effect: benefits

This example I have taken just to explain to how people are goofed and fooled under authentic product claim which is not right one. All knows Aloe gel typically is used to make topical medications for skin conditions, such as burns, wounds, frostbite, rashes, psoriasis, cold sores, or dry skin. Aloe latex is used individually or manufactured as a product with other ingredients to be ingested for relief of constipation. Aloe latex may be obtained in a dried form called resin or as "aloe dried juice". Major products use aloe vera as gel for skin as moisturization benefits. If, we see natural Aloe-Vera is mainly found as a clear gel and its yellow latex. Each format has specific standard % of actives like phytochemicals under study for possible bioactivity, such as Mucopolysaccharides like acetylated mannans/ polymannans, anthraquinone C-glycosides, anthrones, and other anthraquinones, such as emodin and various lectins which shows specific pharmacological activities. As stated for moisturization benefits Mucopolysaccharides help in binding moisture into the skin. Aloe stimulates fibroblast which produces the collagen and elastin fibers making the skin more elastic and less wrinkled. It also has cohesive effects on the superficial flaking epidermal cells by sticking them together, which softens the skin. The amino acids also soften hardened skin cells and zinc acts as an astringent to tighten pores. Its moisturizing effects has also been studied in treatment of dry skin associated with occupational exposure where aloe vera gel gloves improved the skin integrity, decreases appearance of fine wrinkle and decreases erythema. It also has anti-acne effect. As far as Aloe-vera form concern marketed products also present in juice, thick gel format, powder extract format and liquid extract form. Every format has its own active content along with water content now authentic aloe-vera complies the standards sets by specific pharmacopoeia or The International Aloe Science Council (IASC) or WHO monograph, Ayurvedic literature. Just take example of Indian domestic market Aloe-Vera gel as per Ayurvedic Pharmacopoeia- Kanyasara consists of dried juice of leaves of Aloe barbadensis Mill. Syn. Aloe vera Tourn.ex Linn, Aloe indica Royle. (Fam. Liliaceae), shrub planted in many Indian gardens and found growing throughout India that contains Anthraquinone, glycoside which 25 - 500 mg of the drug in powder form used actively to get good efficacy. So, how people sale fake aloe vera without any Safety, Identity, Strength, Quality and Purity Assessment that is required for authentic claims is question but people sale as making it in natural gel like format with very less aloe content using more than 95% water and other polymer like Carbopol, Xanthan gum, Gaur gum and other Gelling Polymer agents and make it green colored perfumed product and make people fool and sale product as authentic everywhere due to not sufficient literacy of product by common public so this way lot many examples of authentic or non-authentic products.

Moral of the story: Therefore, as stated needs of urgent reforms in Indian cosmetic and personal care sector at current stage looking towards fake product lunches.

References:

https://www.cbinsights.com/research/report/beauty-trends-2021/

https://www.coastsouthwest.com/future-makeup-skincare/

https://www.indianretailer.com/article/whats-hot/retail-trends/the-future-of-beauty-and-personal-care-industry.a7226/

https://www.mordorintelligence.com/industry-reports/global-beauty-and-personal-care-products-market-industry

https://www.vogue.in/beauty/content/what-does-the-future-of-beauty-look-like-in-india-post-2020

https://www.export.gov.il/files/cosmetics/ReportonIndianCosmeticsIndustry.pdf

https://www.cosmeticsdesign-asia.com/Article/2022/01/04/Revealed-Five-key-beauty-and-personal-care-trends-set-to-shape-the-industry-in-2022

https://www.imarcgroup.com/india-beauty-personal-care-market

https://www.ibhaindia.com/

https://www.ibef.org/download/FMCG-February-2017.pdf

https://www.mintel.com/beauty-and-personal-care-trends

https://www.fda.gov/about-fda/office-global-operations/india-office

https://cdsco.gov.in/opencms/opencms/en/Cosmetics/cosmetics/