India’s beauty and personal care market is projected to reach $30 billion by 2027, accounting for about 5% of the global market, according to a report by Redseer Strategy Consultants and Peak XV.
The Indian beauty market is set to grow rapidly, reaching US$ 30 billion by the end of 2027. Despite the rapid growth, the market in India remains under-penetrated. Currently, per capita spending on beauty and personal care stands at $14 in India. Whereas, it’s at $313 in the US and $38 in China.
The report highlights that online commerce will become a significant channel for the beauty and personal care industry in India. Further, the online beauty and personal care market is likely to reach $10 billion by 2027. It will constitute 33% of the total market by then.
A global trend is at a peak where consumers are seeking products tailored to their individual skin or body types. They are willing to pay premiums for effective and safe solutions. This is leading to rapid growth in the masstige and premium categories. While consumers use the internet to research products, they are willing to shop across both online and offline channels.
The report notes that brands focused on beauty and personal care have disrupted the market by targeting specific use cases. This has resulted in higher growth rates, gross margins, and profitability compared to FMCG-led beauty and personal care players. Over the past few years, several new brands have emerged, posing stiff competition to established brands and attracting new consumers. The availability of these brands on e-commerce platforms has also enhanced consumer access.
According to the report, the Indian beauty and personal care market is growing at twice the rate of FMCG-led brands. This highlights the significance of specialised beauty and personal care players. As the market matures, the report anticipates the emergence of multiple hundred-million-dollar pure-play beauty and personal care brands. These brands have built portfolios around specific skincare routines, prompting incumbent brands to launch competing products.
Additionally, specialised use cases, such as acne management and anti-ageing solutions, are driving a lot of the market’s action. Brands are investing significantly in new product development, R&D, and customer insights. This creates more efficacious products targeted at specific audiences.
The report underscores the evolving landscape of the Indian beauty and personal care market with online commerce and specialised brands playing crucial roles in its expansion. As consumer preferences continue to shift towards personalised and effective solutions, India’s beauty market is all set for substantial growth.