Introduction
India’s beauty and personal care industry is transforming profoundly, blending rich traditions with innovation and global influences. Over time, the industry has evolved in response to shifting consumer preferences, research advancements, and the increasing impact of globalisation. These forces have reshaped product formulations, marketing strategies, and consumption patterns, aligning the market with international trends while staying rooted in its cultural heritage.
Today, the time-honoured practices have converged with modern science, giving rise to ingredient-forward brands that prioritise transparency and efficacy. Consumers are increasingly drawn to products that spotlight the potency of key ingredients, demanding more sophisticated, ingredient-centric communication rather than broad, generic claims. This reflects a growing preference for authenticity and clarity in the products customers choose.
Furthermore, "beauty from within" is gaining significant momentum, as consumers focus on achieving beauty through internal wellness. Organic and scientifically developed supplements are now a key part of beauty routines, reinforcing the belief that inner health directly influences outward appearance.
This holistic approach is reshaping and positioning the beauty & personal care industry at the intersection of tradition, science, and global standards, and setting new benchmarks for how beauty is defined and pursued in a modern, health-conscious world.
Market overview
The Indian beauty and personal care market is expected to reach $30 billion by 2027, growing at a CAGR of 10%. Source RedSeer Consulting Report. Interestingly, the Indian consumer base, usually driven by value for money, finds pricing less of a barrier in this category today. Consumers value efficiency more than affordability in this segment.
The lipstick effect theory, which suggests that consumers tend to indulge in affordable luxuries during economic downturns, played out during the pandemic, eventually boosting consumer indulgence. Post-pandemic, consumers have become more conscious of their health and well-being, leading to an increased focus on skincare and wellness products.
Formulations and ingredients have become pivotal in their purchase decisions and increased internet exposure along with dermatological research has raised awareness and trust in chemical formulations as well.
Consumer preferences are evolving from purely organic and natural options to scientifically backed products while prioritising efficiency and quality over affordability and price concerns. For instance, Minimalist, an Indian grown brand has redefined this landscape with its proven formulations. The brand operates on creating effective and clean formulations that offer the best of science and nature.
Key trends shaping the industry
Skincare over makeup
There is a noticeable shift in consumer preference from makeup to skincare. Many young Indians are integrating skincare into their broader lifestyle choices. Indian consumers are increasingly inclined towards a skincare-focused approach, moving away from temporary fixes.
Influenced by global movements, such as the K-beauty "glass skin" concept, the clean beauty and no-makeup makeup trends are pushing the use of products that enhance the natural complexion rather than conceal it. As a result, more consumers are opting for skincare solutions that promote long-term skin health and radiance, reflecting a shift towards a more holistic routine.
But in a country where makeup is widely preferred, how has a shift been induced to skincare?
Indian consumers, particularly Gen Z, are driving this shift significantly with their approach to skincare, viewing it as a necessity rather than a luxury. Skincare routines that prioritise long-term skin health are taking precedence over temporary aesthetic fixes like makeup. Practices such as lymphatic drainage, facial massages, and the use of clean, ingredient-focused formulations are gaining popularity. For this generation, skin care is no longer just about appearance but about fostering overall well-being.
According to Be Beautiful India, a leading digital publisher in this segment, 60% of consumers feel that improved skincare has helped them bond with their skin better. The publication notes that these consumers have revealed they would prioritise skincare over makeup. As seen in the graph above, globally this shift is fueled by a desire for authenticity and efficacy as well, pushing brands to focus more on skincare products like serums, toners, moisturizers, and sunscreens.
Consequently, brands are responding by developing innovative beauty and personal care products with advanced, clean formulations to meet the demand for healthy, radiant, and natural-looking skin.
Nourishing beauty from within
The "beauty from within" movement is not only reshaping the beauty & personal care industry but also influencing food intake habits and dietary choices. As consumers become more conscious of the role that internal wellness plays in outward appearance, many are turning to nutrient-rich, vitamin-packed diets to support their skin health. For example, individuals with acne often avoid certain fruits/vegetables or dairy products, which they believe may trigger breakouts.
Also, a study from Mintel shows that one in five Indians are health seekers who actively pursue products that align with their healthy lifestyle goals. In 2020, 35% of these consumers reported reducing their consumption of unhealthy ingredients compared to the previous year, reflecting an increased focus on making mindful dietary choices for long-term wellness.
Superfood & Vitamins
This convergence of internal wellness and beauty is helping consumers achieve favourable results, setting new standards for how beauty is maintained and understood today. As consumers increasingly adopt the “beauty from within” approach, brands are aligning their products with this holistic trend. Brands like The Skin Diet Company and Glow Recipe incorporate vitamins and superfoods into their skincare essentials to bridge dietary wellness and beauty.
Harshita Rai founded The Skin Diet Company, shifting from a management career to skincare after personal success with superfoods for acne. The brand highlights the use of antioxidant-rich superfoods, promoting lifestyle-driven skincare. By addressing both internal and external beauty, brands are setting a new standard that connects wellness and beauty, fostering a more integrated and informed approach to skincare & personal care.
Tailored beauty & personal care
Personalisation and customisation are becoming key differentiators in the beauty and personal care industry. Modern consumers increasingly seek products tailored to their unique skin types, concerns, and lifestyle preferences, making customisation a powerful differentiator for brands.72% of consumers are willing to pay more for personalised products, showing strong demand for customisation in the industry.
Source Sia Partners Report.
Brands are leveraging technology and data analytics to offer personalised recommendations and customised solutions. For instance, brands like Curology and Proven use online quizzes to gather individual skin concerns and preferences, providing customised skincare regimens. Prose, a customised haircare brand, assesses a client’s hair type, goals, and even local climate, using various data points to create personalised hair care formulas. It can be clearly noted that as technology and consumer expectations continue to grow, customisation & personalisation will continue to remain key drivers of growth in the beauty & personal care industry.
Reimagining beauty & personal care through diversity
As consumers increasingly advocate for diversity, brands are responding by developing products that cater to a broader range of skin tones and types. This movement is crucial in a country as diverse as India.
Remember when HUL’s top-selling beauty cream ‘Fair & Lovely’ faced massive backlashes and pushed for rebranding more inclusively?
Reflecting on the backlash & negative market responses, Fair & Lovely rebranded to Glow & Lovely, aiming to promote a more inclusive message. Similarly, brands are increasingly developing inclusive skincare & personal care product lines that cater to a diverse consumer base, moving beyond a one-size-fits-all approach to better serve all consumers.
Celebrity brand founder Traci Ellis Ross, CEO of Pattern Beauty, emphasised that the beauty industry needs to listen to the unique concerns of the diverse audience. Brands that embrace this change are likely to build deeper connections with their audiences and drive growth in a competitive market.
As the beauty & personal care landscape evolves, brands that take proactive steps to embrace diversity and inclusivity are well-positioned to resonate with consumers, cultivate loyalty, and drive sustainable growth in this evolving & competitive market. By fostering a more inclusive messaging, the beauty & personal care industry can help reshape societal perceptions and promote a broader definition of beauty and personal care.
Rise of men’s grooming
India's men's grooming market is experiencing unprecedented growth with an expected CAGR of 11.06% between 2023 & 2029, breaking stereotypes of male beauty as an afterthought. This expansion is driven by changing gender perceptions, media influence, and increased awareness of personal hygiene. E-commerce growth further fuels this market, offering convenience and wider accessibility.
According to a report by Business Today, Minu Srivastava, Consumer Research Analyst at Mintel India, notes that while Indian men are becoming more image-conscious, they struggle with product choices.
Looking at this scenario, brands should adapt their offerings to various lifestyles by focusing on multi-functional solutions and educating male consumers on identifying their skin types and addressing common grooming concerns. This approach will help brands succeed in the men's grooming market, increase their market share, and foster trust and loyalty among customers.
Sustainable and eco-friendly practices in packaging
Sustainability and eco-friendliness are gaining importance among Indian consumers. As people worldwide strive to reduce their ecological footprint, there's a growing awareness in India as well about the environmental impact of beauty and personal care products & their packaging.
A NielsenIQ report highlighted that 62% of global consumers consider sustainability more important now than two years ago, with 61% associating it with environmental benefits such as reducing pollution and preserving natural resources.
Both global and national are adopting sustainable practices, such as using eco-friendly packaging, reducing plastic waste, and sourcing ingredients responsibly in response to growing consumer awareness and demand for environmental responsibility. For instance, L’Oréal has introduced the “L’Oréal for the Future” program, aiming to use 100% recyclable or biodegradable packaging by 2030. Forest Essentials' Sustainable Sourcing Program focuses on ethical and responsible procurement of natural ingredients by prioritising local sourcing from farmers.
Influence of social media in shaping consumer choices
Indian consumer base, the majority being young & working class (between 18 and 35) prioritise appearance and experiment with brands, influenced by social media and internet exposure, to stay on-trend in beauty and personal care.
Social media platforms are enhancing brand visibility, product discovery, and consumer preference insights, driving purchasing decisions and industry movements. Influencers, celebrities & beauty bloggers are playing a crucial role in shaping consumer preferences and driving brand awareness. Dermatologists are leveraging platforms like Instagram & YouTube to disseminate expert knowledge and offer professional opinions on skincare and personal care routines.
Celebrities entering this segment with their brands
According to TOI, in recent years, there has been a growing preference among shoppers towards brands started by celebrities & popular influencers. Following the Western trend, several Bollywood actresses have ventured into the beauty & personal care industry, leveraging their influence to launch brands that resonate with a diverse consumer base. Their ventures advocate for authentic standards and ethical consumerism, thereby shaping the industry in India.
For instance, Deepika Padukone's 82°E emphasises holistic wellness with natural ingredients, Priyanka Chopra Jonas’ Anomaly, a haircare brand that champions sustainability with its eco-friendly packaging and clean formulations, Kriti Sanon’s recently launched Hyphen focuses on affordable luxury fashion, while Kareena Kapoor's co-owned Quench brand emphasises effective skincare solutions.
Furthermore, Government schemes like “Make in India” promoting local manufacturing have given rise to homegrown beauty and personal care brands in the Indian market. Consumers are increasingly supporting local brands that offer high-quality products with efficiency and suitable formulations.
Brands like Plum and WOW Skin Science have gained traction by emphasising natural ingredients such as onion for hair fall control, coconut for hydration, and green tea for pore care, all while offering at prices that appeal even to cost-conscious consumers. These brands have successfully carved a niche for themselves and are giving tough competition to international players and intensifying the competition which has become a key challenge in this industry.
Facing the future - beauty & personal care industry
Although this industry has been evolving at an accelerating rate and shaped by various factors, there are a few key challenges that this industry needs to be aware of;
Digital surge, supply boom
The exponential growth in internet penetration and smartphone usage has fueled a sharp rise in online shopping, particularly in the beauty and personal care sector. There is a growing demand from tier 2 & tier 3 cities as well, therefore catering to the demand of this wider and varied audience creates a significant supply chain challenge, requiring efficient logistics and distribution to meet diverse consumer needs.
The competitive glow
Nykaa CEO Falguni Nayar aims to maintain a competitive edge in India's beauty market by exceeding consumer expectations as she feels there is stiff competition within the industry. With numerous players vying for market share, maintaining unique value propositions, and investing in research & development can be a hurdle to tackle. Therefore, brands must continuously innovate and differentiate themselves to stay relevant in this intense & evolving market.
Fighting the fakes
Counterfeit products can pose serious challenges for brands, therefore undermining consumer trust & hampering the brand’s reputation. According to a report by ET Brand Equity, recently, the Food and Drug Administration (FDA) uncovered a counterfeit cosmetics operation and confiscated fake products valued at Rs 2.39 crore from a shop in Crawford Market, Mumbai. Therefore, brands must invest in anti-counterfeiting measures and educate consumers to mitigate these risks.
Compliances & regulations
Compliances with complex safety standards and stringent regulations can pose strict challenges for brands in this industry. Brands must ensure adherence to avoid legal issues and maintain product integrity and consumer trust.
Technological advancements and future prospects
Furthermore, technological advancements will continue to shape the future of the beauty and personal care industry. Adapting to advancements like Augmented Reality, Artificial intelligence, and Data analytics can be a challenging task but at the same time, these will enable brands to offer personalised experiences, enhance product formulations, and optimise supply chains. Virtual try-on tools, AI-powered skincare analysis, and voice-activated beauty assistants will revolutionise the way consumers interact with products.Looking ahead, the future prospects of the BPC industry in India look promising, driven by innovative concepts and expansive targeting.
Hybrid cosmetics, which combine skincare benefits with makeup, are gaining popularity as consumers seek multifunctional products that save time and offer enhanced results. Brands like Lakme and Nykaa are already introducing such products.
Waterless beauty is another emerging concept that focuses on sustainability by reducing water usage in formulations. This aligns with the growing consumer outlook prioritising eco-friendly and sustainable practices.
Driven by increasing awareness of personal grooming among younger consumers, a new demographic is expected to emerge, namely tweens (9 to 15 years old). As tweens seek skincare products tailored to their unique needs, the segment is set to emerge as a significant trend, prompting brands to innovate with age-appropriate formulations and marketing strategies.
Conclusion
The beauty and personal care industry in India is on a dynamic growth trajectory, driven by evolving consumer preferences, technological advancements, and a focus on wellness and sustainability. As consumers continue to prioritise self-care and well-being, the beauty and personal care industry will play a crucial role in enhancing their overall quality of life. Brands prioritising innovation, personalisation, inclusivity, and strategic brand development will thrive in this competitive landscape.
With our insights and market expertise, we have strategically guided brands like Plural Skin to thrive in the competitive & constantly evolving BPC landscape. Leverage our skills to elevate your brand and achieve remarkable success in this dynamic industry.
