Cosmetics industry in Pakistan

Market overview

The cosmetic industry in Pakistan has witnessed significant growth over the past decade,
with a growing consumer base and increasing demand for beauty and personal care
products. The beauty and personal care market is considered to be inflation resistant as the
key drivers of shopper conversion in this category are perceived product effectiveness, the
quality of the ingredients and the emotional need that these products fulfil, rather than
price alone. Therefore, despite inflationary pressures the market is estimated to be worth
over USD 2 billion and is expected to grow at a compound annual growth rate of 7.2%
between 2021 and 2026. According to The Economic Survey of Pakistan 2017-18, the
increasing rate of urbanisation combined with rising per capita disposable incomes (largely
due to the increased contribution of women in the workforce) has created a robust demand
for quality personal care solutions.

Local and international brands are competing in the market, with international brands
dominating the premium and luxury segments while local brands are more popular in the
mass market. The most popular products include skin care, hair care, and color cosmetics.
Traditionally, Pakistan’s beauty market has largely been dominated by global conglomerates
– Colgate Palmolive, Johnson & Johnson, P&G and Unilever, with L’Oreal and Reckitt
Benckiser (RB) relatively late entrants. Holding their own against these giants, albeit with a
comparatively smaller, yet loyal consumer base, are several heritage brands, including
Hashmi, Kala Kola, Medora, Saeed Ghani and Tibet to name a few. In Pakistan, the
penetration of most formats within the beauty category is still quite low and therefore,
there is plenty of room for all kinds of local and international brands to carve out a niche
across geographies, price points and propositions.

Distribution channels are also important in the industry, with most products sold through
traditional retail channels such as supermarkets and independent beauty stores. However,
e-commerce is gaining popularity in Pakistan, and many companies are now selling their
products online.

In terms of consumer preferences, there is a growing demand for natural and organic
products, particularly among the younger generation. Halal-certified products are also
popular, as the majority of the population is Muslim and prefers products that are compliant
with Islamic principles.
Challenges

Limited Access to Financing

Lack of Innovation and R&D

- The industry often lacks significant investment in research and development,
resulting in a limited range of innovative products. The focus on product
development and formulation is relatively low.

Skilled Labour Shortage

- There is a shortage of skilled labour in the cosmetics industry, particularly in areas
such as product formulation, quality control, and marketing.

Regulatory Compliance
- The industry is heavily regulated by the Pakistan Standards and Quality Control
Authority (PSQCA), and companies must comply with strict quality and safety
standards, navigate complex regulations and obtain necessary certifications and
approvals, which can be time-consuming and costly.

Counterfeit and Substandard Products:

- The cosmetics market in Pakistan is plagued by the presence of counterfeit and
substandard products. These products not only pose health risks to consumers but
also undermine the reputation of genuine brands.

Limited Consumer Awareness:

- Many consumers in Pakistan lack awareness about the importance of quality and
safety standards in cosmetic products. Educating consumers about the benefits of
using genuine, certified products and raising awareness about potential risks
associated with counterfeit or substandard items can be a challenge.
Opportunities

Export Potential
- There is the opportunity for Pakistani cosmetic brands to expand their presence in
international markets. In 2021 Pakistani exports of beauty/cosmetics products stood
at $42million up 17.7% from 2020 (See Appendix for top exporters). The largest
category of exports is beauty preparations/skin care and halal-certified products
have a growing market in neighbouring Muslim countries.

Natural and Organic Products/Halal certified

- Consumers in Pakistan are increasingly seeking natural and organic cosmetics in line
with the global trends towards ‘clean beauty;
- Between 2013 and 2016, halal product launches accounted for 2.5% of all launches
in the global beauty and personal care category, while in the Asia Pacific region, with
a predominantly Muslim population, the percentage goes up to 72%.

E-commerce growth
- The Pakistani Beauty Care eCommerce market is predicted to reach US$64.7 million
by 2023 and accounts for 11.5% of the Personal Care eCommerce market in Pakistan.
It is expected to increase over the next years. The expected compound annual
growth rate for the next four years (CAGR 2023-2027) will be 6.3%, resulting in a
projected market volume of US$82.6 million by 2027.

Influencer and social media marketing

- Influencer marketing and social media platforms have a significant impact on
consumer behaviour in Pakistan. Collaborating with influencers and leveraging social
media channels can help cosmetics companies enhance brand visibility, engage with
consumers, and drive sales.

Men’s grooming market

- There is a growing awareness among men regarding personal care and grooming
products. This presents an opportunity for cosmetics brands to introduce specialized
grooming products tailored to men's needs, including skincare, haircare, and beard
care products.
Appendix

Top exporters of cosmetics in Pakistan:

S.# Contact Persons details

Name & complete address Specialization / Sub-
i.e. Designation, Email, Sector
of the company / Business sector
Phone Number
1 Kashif Zia, CEO
042-
35756973/35756
985 Skincare, Hair care &
M/S FORVIL COSMETICS. Cosmetics
personal care
71 – A, Main Boulevard, export@forvilc
Gulberg, Lahore – Pakistan osmetics.com

2 GOLDEN PEARL
COSMETICS (PVT.) Shaikh Abid Mehmood,
LIMITED CEO
115/1 M, Quaid-e-Azam  042 35142073-76 Cosmetics Personal care
Industrial Estate, Kot info@goldenpearl.com.pk
Lakhpat Lahore, Pakistan.

3 SHAHEEN COSMETICS Fatma Shaheen, CEO Skin Care

(PVT.) LIMITED 042-3518668 Creams, Whitening
Plot No.368 SundarEstate, info@facefresh.com Cosmetics Creams, Face
Lahore, Pakistan Washes, Serums and Wh
itening Soaps
4 Winsome Glow Beauty
Mr. Azhar Karim, CEO
cream,Winsome Glow
0322 457 0029
MNF COSMETICS Hair Removal
info@winsomegl
PAKISTAN Cosmetics Cream,Winsome Glow
ow.com
Y-BLOCK 191-Y, Sector Y BeautySoap,Winsome
DHA Phase 3, Lahore, Glow Face Wash,Beauty
Punjab 54000 Products
5 WHITE PEARL
Agha Iqbal, Director
COSMETICS
0346-449-9395 Skincare, Hair care &
13KM Ferozepur Road, Cosmetics
whitepearlcosmetics@gm personal care
Lahore, Pakistan.
ail.com
6 KAW Cosmetics

38/63 REHMAN STREET

Zohaib Khan, Area Sales
NEAR AHMED DIN Skincare, Hair care &
Manager Cosmetics
PARK ISLAM PURA personal care
042-37158704/ 37159194
LAHORE

7 SANA TRADERS
COSMETICS Saima Akhtar, CEO
Skincare, Hair care &
0317-1117222
220/2, Sector 23, Korangi Cosmetics personal care,
info@sana-naturals.com
Industrial Area, Karachi Himalayan salt
Source:

https://tdap.gov.pk/wp-content/uploads/2022/01/Cosmetics-Brochure.pdf
Pakistan Bureau of Statistics
Trade map
https://ecommercedb.com/markets/pk/beauty-care
https://aurora.dawn.com/news/1143226

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Through my passion in sustitanbility I took on a role at a climate tech startup app, my

task was to develop a brand emissions framework to rank sustainability practices
across various industries.

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make more sustainable purchasing decisions based on a brand's emissions
throughout the value chain.

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approach and sort through and preprocess huge amounts of govt provide emissions data

I utilized principal component analysis (PCA) to create a statistical model. This

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Tell us why management consulting at Oaklin excites you as a career and what
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I am incredibly excited about the prospect of pursuing a career in management
consulting at Oaklin. The dynamic and challenging nature of the field, coupled with
Oaklin's reputation for excellence and innovation with a collaborative company
culture truly excite me and align with my interests. I believe that my skills,
experiences, and personal qualities make me a brilliant fit for Oaklin.With my
strongbackground in analytical business development and specialization in
dataanalytics in my degree, I have honed my ability to analyze large and complex
datasets, identify trends, and extract actionable insights. This skill set willenable me
to contribute to Oaklin's data-driven approach to problem-solving andstrategic
decision-making. My experience at Amazon, where I provided strategicadvice to
consumer electronics brands and achieved significant growth throughout thee-
commerce value chain using data-driven retail insights, has equipped me with a
solidfoundation in strategy formulation, competitor analysis, and market research.
Iam confident that these skills will prove valuable in delivering high-qualitysolutions
to Oaklin's clients.In addition to mytechnical capabilities, I possess exceptional
problem-solving and communicationskills. I can effectively communicate complex
data analysis concepts to bothtechnical and non-technical stakeholders, bridging the
gap between analytics andbusiness strategy. As a team player, I thrive in
collaborative environments,working with colleagues to achieve organizational goals. I
believe that myability to multitask, prioritize, and coordinate resources will contribute
todelivering exceptional service to Oaklin's clients.Furthermore, I amdrawn to
Oaklin's Strategy and Technology teams, as I am highly motivated towork at the
intersection of strategy and technology with a particular focuson artificial intelligence
and sustainability. The opportunity toleverage my data-driven approach, thrive in
ambiguous and fast-pacedenvironments, and collaborate with talented individuals
aligns perfectly withmy career aspirations.

I am incredibly excited about the prospect of pursuing a career in management

consulting at Oaklin. The dynamic and challenging nature of the field, coupled with
Oaklin's reputation for excellence and innovation with a collaborative company
culture truly excite me and align with my interests. I believe that my skills,
experiences, and personal qualities make me a brilliant fit for Oaklin.
With my strong background in analytical business development and specialization in
data analytics in my degree, I have honed my ability to analyze large and complex
data sets, identify trends, and extract actionable insights. This skill set will enable me
to contribute to Oaklin's data-driven approach to problem-solving and strategic
decision-making. My experience at Amazon, where I provided strategic advice to
consumer electronics brands and achieved significant growth throughout the e-
commerce value chain using data-driven retail insights, has equipped me with a solid
foundation in strategy formulation, competitor analysis, and market research. I am
confident that these skills will prove valuable in delivering high-quality solutions to
Oaklin's clients.
In addition to my technical capabilities, I possess exceptional problem-solving and
communication skills. I can effectively communicate complex data analysis concepts
to both technical and non-technical stakeholders, bridging the gap between analytics
and business strategy. As a team player, I thrive in collaborative environments,
working with colleagues to achieve organizational goals. I believe that my ability to
multitask, prioritize, and coordinate resources will contribute to delivering exceptional
service to Oaklin's clients.
Furthermore, I am drawn to Oaklin's Strategy and Technology teams, as I am highly
motivated to work at the intersection of strategy and technology with a particular
focus on artificial intelligence and sustainability. The opportunity to leverage my data-
driven approach, thrive in ambiguous and fast-paced environments, and collaborate
with talented individuals aligns perfectly with my career aspirations.