The recent advertising dispute between Hindustan Unilever (HUL) and Honasa Consumer, the maker of The Derma Co. and Mamaearth brand of products, has shifted attention to regulatory gaps with regard to sunscreens, valued at Rs 2,500 crore in India, and growing at 30-40% per annum.
While the ad dispute between the two personal care majors was settled last month after legal intervention, FMCG firms under the Indian Beauty and Hygiene Association (IBHA), an apex body, are asking for stricter rules when it comes to sun protection factor (SPF) testing, persons in the know said. SPF is a measure of how well a sunscreen will protect skin from harmful ultraviolet (UV) rays of the sun, which can cause sunburn, damage skin and can contribute to skin cancer.
At the heart of the matter is the need to move to performance-based standards versus composition-based rules that have governed cosmetic regulation in India for decades, say experts. Beauty and personal care (BPC) products along with drugs are governed under the Drugs & Cosmetics Act, 1940 and are subjected to a system of inspection and licensing by state licensing authorities.
In the case of sunscreens, which are classified as cosmetic products, the Bureau of Indian Standards (BIS) 4707 Part 4 outlines a list of permitted filters, specifying concentration limits as well as labelling on packs, experts said.
Beauty majors, say sources, are not only asking for a separate law for BPC products, but are also seeking science-based standards for these products including sunscreens, on the lines of the food sector where the Food Safety and Standards Act 2006 replaced existing food laws that focused on prevention of adulteration to regulation based on safety and efficacy.
“Indian cosmetic regulation does not specifically address sunscreens or specify testing methods to validate SPF claims,” and industry source said. As a result, various testing approaches—whether local or international, including in-vivo, in-vitro, or mathematical models — are used by companies to support SPF claims creating an inconsistent playing field.
“Consumers are unable to make informed choices, resulting in long-term and irreversible damage to the skin. This is also coming at a time when summer temperatures are routinely soaring above 45°C,” the source said.
Some executives have also pointed to the domestic beauty and personal care industry being divided on the issue of SPF testing standards, with small manufacturers arguing that compliance levels will shoot up, which will be detrimental to them. Large manufacturers, on the other hand, have argued that standardised testing methods are needed for SPF to weed out misinformation and misleading claims.
The pushback by small manufacturers, say experts, comes as the domestic sunscreen market has seen the emergence of direct-to-consumer (D2C) brands from The Derma Co. to Minimalist (now acquired by HUL), Pilgrim, Foxtale, Clensta etc, who’ve been competing with legacy beauty brands such as Lakme and Ponds from HUL, L’Oreal and Nivea among others for consumer mindspace as well as sales.
Industry estimates suggest that two-third of sunscreen sales in India happen online, with the rest happening offline. The online push by D2C brands has seen a nearly 20% increase in sunscreen launches over the last few years, according to a Mintel study, with the trend expected to stay as consumer awareness around sun care grows.