Fuelled by rising incomes, social media influence, and e-commerce, India’s beauty and personal care market is experiencing rapid growth. It accompanies a significant shift towards premium products and increasing demand in non-metro cities.
India’s beauty and personal care market is set to grow from $20 billion to $34 billion by 2028. The growth is due to rising discretionary spending, social media influence, and e-commerce growth. With premium products in high demand and untapped potential in non-metro cities, global brands are increasingly focusing on India, reshaping beauty trends and consumer behaviour in the region.
Unprecedented Market Growth
India’s beauty and personal care (BPC) market is witnessing extraordinary expansion. It is likely to grow from $20 billion to $34 billion by 2028, at a 10-11% annual growth rate. This surge far outpaces other global markets like China (4-5%) and the US (2-4%), according to a Nykaa Beauty Trends report in partnership with Redseer.
Factors Driving Growth
- With increasing discretionary spending, retail expenditure on beauty products is growing at 1.5x the rate of non-discretionary spending.
- India’s 520-560 million social media users in 2023 are democratising access to beauty expertise and trends. It’s driving consumer engagement and boosting market demand.
- E-commerce is likely to contribute 33% to BPC sales by 2028, significantly increasing product reach and accessibility across the country.
Premium Beauty Demand Beyond Metros
Indian consumers are increasingly favouring premium beauty products, a segment expected to reach $3-3.2 billion by 2028. Non-metro cities present a massive opportunity. It offers five times the growth potential in per capita BPC spending compared to metro cities. Platforms like Nykaa are already witnessing 60% of their prestige beauty brand sales coming from non-metro regions.
Low Per Capita Spend Offers Massive Potential
Despite this robust growth, India’s per capita BPC spending remains the lowest globally at just $15, compared to higher-spending nations.This highlights a massive growth opportunity. Projections indicate that the average Indian consumer could be spending $50 on beauty and personal care products by 2028.
