India’s beauty and personal care market to touch $30 billion by 2027

New Delhi: India’s beauty and personal care market is projected to touch $30 billion by 2027, accounting for about 5% of the global market, according to a report launched by Redseer Strategy Consultants along with Peak XV.

The beauty market in India is currently under-penetrated, on a per capita basis spends on beauty and personal care stand at $14 in the country compared to $313 in the US and $38 in China.

Meanwhile, the report projects that online commerce will become a “significant channel” for the beauty and personal care industry. Redseer estimates that the online beauty and personal care market will touch $10 billion by 2027, making up 33% of the total market by then.

“Globally, there’s a growing need among consumers for products ‘made for them’, tailored to individual skin or body types. They are increasingly willing to pay premiums for effective and safe solutions, 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,” said Rohan Agarwal, Partner, Redseer Strategy Consultants.

Brands focused solely on pure-play beauty and personal care have disrupted the market by targeting specific use-cases, leading to higher growth rates, gross margins, and profitability compared to FMCG-led BPC players, the report said. In fact, a clutch a new brands have disrupted the beauty and personal care market over the last few years posing stiff competition to established brands. Brands such as Sugar, Mama Earth, Kay Beauty, among others have emerged drawing new consumers into their fold.

Consumers, on the other hand, also have better access to such brands thanks to e-commerce platforms that offer a variety of options.

“Indian beauty and personal care market is growing at a rate twice as fast as FMCG-led brands, signaling the significance of specialized, beauty and personal care-focused players,” according to the report. As the Indian beauty market matures, the report anticipates the emergence of multiple hundred-million-dollar pure-play beauty and personal care brands.

Such brands have built portfolios around specific skincare routines prompting incumbents to launch products to compete with them.

“From acne management to anti-ageing solutions, specialized use cases are where we’re seeing a lot of the action. Brands are spending a significant portion of their resources and organisation bandwidth on new product development, R&D, and customer insights to drive more efficacious products to a targeted audience,” said Sakshi Chopra, MD, Peak XV.