The "But Naturally!" report from research firm Nielsen India highlighted that the natural segment – which includes products made of natural, herbal and ayurvedic ingredients – is growing at 1.7 times that of the overall personal care market.
And at 6.6%, the value growth of this segment is increasing at 2.2 times that of non-naturals, the Financial Express noted. Naturals now account for 41% of the Rs 44,790 crore personal care market.
"Naturals' contribution has inched up in the last few years, growing 4-5% in the last 4-5 years," Sameer Shukla, executive director at Nielsen India, told Mint. "So, on an average, naturals is eating up 1% (category share) every year. It could go up to 50% in the next few years."
Hair oil and toilet soaps were the leading products within the natural personal care space, accounting for 34% and 30% respectively. Face care (13%), toothpaste (11%), shampoo (7%) and hand and body (6%) made up the rest.
Toothpaste, however, was the fastest growing product, according to the study, registering a 20.1% increase in sales last year; hair oil , in contrast grew only 5% while sales of toilet soaps, which already have a high household penetration, declined 1.3%.
The report further found that category growth was being driven by brands such as Patanjali and Dabur, whose entire proposition is a 'natural' one.
But, said Shukla, "the growth potential (difference) between core naturals and non-core naturals is only 2-2.5%. So non-core naturals brands can play catch up if they have adequate focus and get their communication and media channels right."
Data sourced from Financial Express, Mint; additional content by WARC staff