The 'Soap' Opera Has Just Begun

Indian exporters of organic soaps have been making ‘clean’ hits across overseas markets for quite some time now. As a result, exports of this product from the country has risen steadily. So, what really makes this product a popular choice amongst foreign buyers and Indian exporters (who enjoy high average margins)?

- Neha Dewan

As one walks past the glitzy brands vying for attention in the popular Select Citywalk Mall in South Delhi, a bevy of organic and herbal stores stand out amongst the crowd. Shahnaz Husain, Forest Essentials and L’Occitane are among the slew of famous herbal and organic beauty brands that can be seen attracting throngs of shoppers to their fold. And it’s not as if only the domestic market is reaping the dividends of the ‘go organic’ and ‘go natural’ philosophy. While beauty and hair products have always been a hit, another category which is now drawing the crowds – within India as well as internationally – is organic and herbal soaps. With the host of benefits they promise to offer, should one be surprised?

EXOTIC & POPULAR

A look at the statistics lends more credence to the statement of their popularity. As per the Ministry of Commerce (MoC) data, exports of organic soaps (HS Code: 34011190; including organic and natural soaps) in FY2016 were to the tune of $51.96 million – with UAE, US and Saudi Arabia topping the charts as biggest destinations for India. While the export demand has grown at a CAGR of 7.5% between FY2012 and FY2016, in FY2016 exports fell to $51.96 million from a high of $58.12 million in FY2015. The exports generated in FY2017 (as of November 30, 2016) stood at $35.43 million, and is expected to show a decent increase by the end of this fiscal.

However, it is Germany that dominates the global exports market of herbal and organic soaps. The country’s exports revenue from herbal and organic soaps in CY2015 was $398.09 million – the European nation is followed by US and Indonesia at $332.67 million and $312.63 million, respectively.