FMCG Companies Call for Dedicated Law to Regulate Beauty and Personal Care Products
Leading FMCG firms are pushing for a distinct regulatory framework for beauty and personal care products, arguing that the current regulations under the Drugs and Cosmetics Act, 1940, are outdated and primarily designed for pharmaceuticals. Industry leaders believe a separate law will foster innovation, streamline compliance, and align with global standards.
Challenges With Existing Regulations
Currently, beauty and personal care products are categorized under the same legislation that governs drugs and medicinal products. This has led to regulatory bottlenecks, as companies must adhere to provisions designed for pharmaceuticals rather than cosmetic goods. Industry executives argue that this stifles product innovation and creates unnecessary hurdles in launching new beauty formulations in the market.
Compared to countries like the US, where the FDA regulates cosmetics under a distinct framework separate from pharmaceuticals, India’s overlapping regulations place limitations on cosmetic product development. The lack of clarity in defining permissible ingredients, preservatives, and labeling requirements has further complicated compliance processes.
Call for a Streamlined Legal Framework
Industry leaders advocate for a law exclusively focused on beauty and personal care products, similar to the regulatory systems in markets such as the European Union and Japan. A dedicated regulatory structure would allow for globally harmonized safety standards, clear ingredient guidelines, and faster product approvals. It would also provide clarity on permissible claims in advertising and marketing, reducing disputes over misleading promotions.
The move is seen as crucial at a time when India’s beauty and personal care market is expanding rapidly. According to industry estimates, the sector is projected to grow significantly in the coming years, fueled by increasing consumer demand, a surge in homegrown brands, and growing digital retail penetration.
Potential Industry Benefits
A revised regulatory framework would help multinational and domestic brands scale their presence in India while encouraging companies to invest in research and development. Simplified compliance and faster clearances could accelerate the introduction of innovative beauty products tailored to consumer needs.
With India emerging as a key hub for beauty commerce, introducing a separate law tailored to the industry could strengthen consumer confidence, enhance product safety, and drive market expansion. As discussions between FMCG companies and regulatory authorities continue, stakeholders are hopeful for an updated legal framework that aligns with global best