FMCG Companies Urge Separate Regulatory Framework for Beauty Products
Leading fast-moving consumer goods (FMCG) companies are advocating for a dedicated regulatory framework for beauty and personal care products, distinct from pharmaceutical regulations. Industry leaders argue that the current oversight under the Drugs and Cosmetics Act, 1940, which governs both medicinal and non-medicinal products, is outdated and hampers innovation.
FMCG Leaders Call for Revised Regulations
Major players in the sector, including Hindustan Unilever, L’Oréal, and Procter & Gamble, have raised concerns that beauty products should not be subject to the same level of scrutiny as pharmaceutical drugs. They believe that a separate law would allow for faster product innovation while ensuring consumer safety.
The demand for a distinct framework comes as India’s beauty and personal care market continues to grow. Valued at approximately $15 billion, the sector is experiencing rapid expansion driven by evolving consumer preferences and increased purchasing power.
Roadblocks to Innovation
One of the primary concerns voiced by FMCG companies is the lengthy approval process imposed by current regulations. Under the Drugs and Cosmetics Act, every cosmetic formulation change or new product launch requires time-consuming bureaucratic approval, a hurdle that companies argue slows down time-to-market and limits global competitiveness.
“The current regulatory approach treats skincare and haircare products with the same rigidity as pharmaceutical drugs, despite them being fundamentally different,” said an executive from a leading multinational FMCG firm. “A new law specific to beauty products would allow companies to innovate more freely while maintaining safety standards.”
Government Response and Industry Expectations
Regulatory bodies have acknowledged industry concerns and discussions are reportedly underway to assess the feasibility of introducing a separate legal framework. If implemented, a new law could streamline regulations, reduce compliance delays, and create a more competitive environment for domestic and international brands operating in India.
The move aligns with global trends, as many countries already have distinct cosmetic regulatory systems that are separate from pharmaceutical laws. Industry experts believe that reforming India’s cosmetic regulations would enhance the sector’s growth potential and align Indian policies with international best practices.
As demand for premium and specialized beauty products rises, FMCG companies remain hopeful for regulatory changes that could support long-term industry