With a vast population and various needs, India is witnessing an unprecedented boom in the beauty and wellness industry. Studies show that the market size will touch a whopping US$ 20 billion by 2025.
India as a nation is a melting pot of over 1.42 billion people with diverse skin and hair needs. There are a large number of people from different generations, different regions, and different climates. Owing to this, the demand for all types of products eventually skyrockets organically. A nation with such stats offers wonderful opportunities for a flourishing beauty and wellness industry.
The future as predicted in beauty & wellness industry
Recently KPMG, one of the big fours, conducted a study on the Indian beauty and wellness industry and market. They predicted that its market size might leap at a compound annual growth rate of 20.6%. The industry, currently worth US$ 6.5 billion, is predicted to be worth US$ 20 billion by 2025. Further, the report suggests that the organic beauty market is likely to reach US$ 1.7 billion by 2025. Furthermore, the haircare market is also expected to be worth US$ 4 billion by 2023 end. The stats look promising, considering the various factors the nation offers that compel the market to grow. Let’s delve deeper.
What makes India a competitive market
This unprecedented boom in the industry can be credited to several factors. The growth in disposable incomes, emphasis on self-care, influencer economy, changing lifestyles, and expanding awareness all compel people to purchase goods and services as per their needs. Together, all these are making Indians accept more and more products with arms wide open. It makes India lucrative for international brands as well as encourages more and more local players.
Recent times have seen numerous brands emerge in the market. Be it the small local players, newcomers, or international players. Market penetration is easier than ever and is rapidly growing. It renders the ever-inquisitive audience with a plethora of options to choose from, making the market highly competitive. And these factors come together, intensifying the competition and pushing local players to innovate and stay relevant.
How Indians are pushing the beauty & wellness industry
The growth in the beauty, cosmetics, and wellness industry, in today’s time can not be solely credited to women of the nation. Though, now, as more and more females become financially independent, they indulge in self-care.
With changing narratives around beauty, men, too, indulge in beauty and wellness products and services. With the increasing number of men willing to experiment with various products and services, there has been substantial growth in the said sector. It has led to the Indian mens grooming market’s rapid growth of more than 42% in the last five years, as noted by The Associated Chambers of Commerce & Industry of India (ASSOCHAM).
Further, the youth of the nation is now more conscious than ever. Since 2005, the consumption of beauty products among teenagers has skyrocketed. Increasing pressure to look good, especially on social media, and the increasing curiosity and awareness are major contributing factors. ASSOCHAM suggests that 68% of youngsters feel that grooming products help boost their confidence.
Additionally, the consumption is no longer limited to rural and suburban areas. With the far-reaching impact of influencers, social media, improvement in linkages with the cities by roads, telecommunication and the firms reaching out to the people in villages and small towns. That is how it should be, said D S Rawat, secretary general, Assocham.
The expanding online and offline space
One primary reason beauty products are suddenly on the rise is the increasing ease of availability. The last five years or so have seen a wave of platforms providing a vast assortment of mass-market and luxury brands.
Nykaa was a breakthrough in the online beauty space in 2012. The brand also opened 141 stores in the last few years, expanding its offline presence. Tata Group ventured into the business with an e-commerce marketplace Tata Cliq Palette. Shoppers Stop has around 10 SS Beauty standalone stores. It is aiming to open another 12 to 15 standalone stores in FY24. Furthermore, Reliance Retail also launched its online beauty platform Tira. The possibilities for the industry are beyond the sky with such big players offering a gazillion products.
