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Indian Market for Active Ingredients Ripe for Innovation; Growth

Posted: December 22, 2009

Analysis from Frost & Sullivan showed that India's beauty market is a "fertile breeding ground" for active ingredients companies that can offer novel products and easier formulations. Ingredients with increased functional benefits and multi-application profiles are the order of the day, the firm wrote in its "Strategic Analysis of the Indian Personal Care Active Ingredients Market," as brand owners look to make a splash in several segments through better formulations that provide multiple benefits from the same products.

As active ingredients are the backbone of a product's appeal, states the firm, brand owners must take efforts to market their benefits to consumers. The rising consumer awareness and increasing ease of application have spurred the growth of this fledgling market in a number of segments and end-user markets.

"UV ingredients, in particular, are fueling the demand for end-product skin creams and skin lightening lotions," says Frost & Sullivan research analyst Natasha Telles. "This trend is expected to continue as customers become more aware and manufacturers are compelled to use targeted ingredients for specific formulations."

The future success of market participants rests on their power to differentiate their ingredients and functionalities. This has resulted in a slew of innovations, ranging from the delivery of antiaging actives through silicon elastomers to nutritional products that claim to posses anti-wrinkling and skin-smoothing properties.

Product development and market penetration are vital strategies for companies to enhance the growth of conditioning agents. However, in younger markets such as UV and exfoliating ingredients, market expansion and diversification are expected to aid in revenue generation.