The beauty industry keeps buzzing with different trends every other day and consumers from India form a large part of the beauty community. The rapidly growing urban consumer base for beauty and personal care products has been attracting international as well as new national participants for a few years now.
India is the 4th largest beauty market in the world and this seems to be just the beginning. In December, at Cosmoprof India, held at the Jio Convention Centre in Mumbai, industry executives claimed that the Indian beauty market is projected to expand at a staggering rate of 40% by 2026. They added that the Indian beauty market is estimated to reach $2.27 billion by 2028, with a CAGR of 10.91% during the forecast period (2023-2028).
At the event, Spoorthy Shetty, CEO of BBlunt India remarked, “India’s beauty industry, despite its massive 1.4 billion population, holds considerable potential for further growth and expansion. The professional hair care market, alone valued at ₹2,100 crore, exemplifies this potential.”
The Growing Awareness of Cosmetic and Skincare Products in India
Over the past few years, the burgeoning of social media trends and influencer marketing have greatly contributed to the awareness and demand creation for beauty products in India. Trends such as the Korean glass skin look, clean girl makeup, strawberry makeup, latte makeup, and so much more have drawn potential consumers to adopt new products and routines. The global pandemic COVID-19 also created a wave for skincare products as people became more conscious about their skin and started to forge skincare routines and try D-I-Y home remedies.
Furthermore, the accelerating expansion of e-commerce platforms and their subsequent physical stores are also contributing to the increase in demand for cosmetic, skincare, haircare, and personal care products and tools.
The Appearance of Global Beauty Houses in the Indian Beauty Market
While several big names in the beauty industry have been catering to the Indian market for a couple of years now, recently new brand launches have been pouring in with India becoming the new beauty industry magnet. In 2023 we saw Raheja Group’s Shoppers Stop sign the distribution partnership of NARS Cosmetic which is owned by the Japanese house Shiseido. June 15 marked the launch of the beloved singer and actor Selena Gomez’s Rare Beauty at Sephora India; while this year started with the much-awaited launch of Rihanna’s Fenty Beauty at Nykaa on 7th March just after her performance at the Ambani pre-wedding.
What’s Next?
The introduction of new international and national brands and the growing consciousness for sustainable, cruelty-free, vegan, clean, and organic products have created a trend for informed and thoughtful shopping. There is an increase in the demand for problem-solving and innovative products that are now available at competitive prices, thanks to the emergence and growth of several e-commerce marketplaces dedicated to the industry. Furthermore, with an increase in people’s disposable income, brands are witnessing a growing demand for premium beauty and luxury among Indian consumers.
As per a joint report by Redseer Strategy and Peak XV, published in September 2023, the Indian beauty and personal care market has projected the highest growth rate globally among comparable nations. They reported that there is a willingness among consumers to pay more for products that are tailored to their specific needs, creating rapid growth in masstige and premium categories.
Along with the growing demand and awareness of beauty and self-care products, we have also witnessed Indian celebrities signing ambassadorship deals with global beauty giants such as Miss World Manushi Chhillar becoming the global brand ambassador of Estee Lauder and Bhumi Pednekar becoming Mac Cosmetics’ first Indian ambassador. With such developments, it is not far that India will soon become a global beauty hotspot.