A revolution in beauty & personal care is taking India by storm, says BDO

India’s beauty and personal care market has been enjoying rapid growth, according to a report from BDO. With a projected CAGR of around 11%, India is one of the world’s fastest growing markets for beauty and personal care.

The growth that is being observed is mostly driven by rising disposable incomes, a growing middle class, and an increase in interest in personal grooming and wellness. The industry is undergoing a significant transformation, fuelled by digitalization, a shift towards natural and sustainable products, and premiumisation.

Premiumisation is an important force in the wider market for beauty and personal care products. That refers to the practice of brands raising prices on products that consumers are willing to pay more for because they perceive them as higher-quality than the cheaper alternatives.

Digitalisation has revolutionised the beauty and personal care industry, with e-commerce platforms and social media playing a pivotal role. Online retailing has broadened product accessibility, enabling brands to reach a wider audience, including those in remote areas.

Competitive playing field
Traditionally dominated by a few major players, the beauty and personal care market is now a highly competitive arena with numerous domestic and international brands fighting for consumer attention. The increasing demand for personalized and inclusive products is another key development, particularly in the makeup and skincare segments.

Beauty influencers have also significantly shaped consumer preferences, with trends and product reviews quickly gaining traction across digital platforms. Social media has become a very important tool for boosting sales.

Consumers are increasingly conscious of the ingredients in their personal care products. That has fuelled demand for products perceived as safe, ethical, and environmentally friendly. This trend has led to the emergence of niche brands that incorporate elements from traditional Indian beauty practices into their modern products.

While the market presents immense opportunities, there are still some big challenges like scaling up profitably and sustainably. However, with its large and diverse consumer base, coupled with increasing disposable incomes and a growing preference for personal care, the Indian beauty and personal care market is poised for continued growth and innovation.

“Traditionally dominated by a few major players, the beauty and personal care market has transformed into a highly competitive arena, with numerous domestic and international brands vying for consumer attention,” said Ashish Bagadia, partner at BDO.

“A significant trend driving this market is the rising demand for natural and organic products. Consumers are increasingly conscious of the ingredients in their personal care products, fuelling demand for products perceived as safe, ethical, and environmentally friendly.”