KNews Desk: India's beauty and personal care market is expected to grow rapidly in the coming years. Amid the increasing demand for skincare, haircare, makeup and grooming products, Aditya Birla Capital's report estimates that India's beauty and personal care market could grow from around $23 billion by FY 2026 to around $42 billion by FY 2031. That means the market size is likely to nearly double in about five years.
According to the report, India's beauty and personal care sector can grow at an annual compound growth rate of about 12 percent. India can also become the world's fourth largest beauty and personal care market by 2030. Rising incomes, urbanization, internet penetration and online shopping have further fueled the expansion of this sector. The number of people buying beauty products in India is still less than the potential customers. Currently, about 14 crore people actively buy beauty and personal care products. This number is expected to increase to around 20 crores by financial year 2030. This means that a large number of new customers can join this market in the coming years. Social media and e-commerce platforms have also made access to beauty products easier, allowing customers in smaller cities and towns to easily access different brands.
The role of Gen Z and Gen Alpha is going to be very important in the future of the beauty market. According to the report, by the financial year 2031, the share of these two generations can reach about 50 percent in the total expenditure of the beauty sector. In the financial year 2024, this share was about 32 percent. Young consumers no longer buy products just by looking at advertisements, but also take into account social media influencers, online reviews, ingredients used in the product and its potential effects. Online sales of beauty products are also expected to increase in the coming years. According to the report, the share of online sales in the beauty market is around 25 percent in the financial year 2026, which may increase to 34 percent by 2031. At the same time, the share of organized offline retail is expected to increase from 27 percent to 32 percent. Quick commerce can also become an important medium for this sector, especially for purchasing everyday products.
Digital marketing, online marketplaces and contract manufacturing have made it easier for new beauty brands to enter the market. According to the report, the number of new-age brands earning more than Rs 100 crore annually may increase from around 70-80 by FY 2026 to more than 150 by 2031. However, achieving success in this growing market will not be easy. Instead of just increasing sales, companies will have to retain customers for repeat purchases. There will also be a challenge to control advertising expenses and improve profit margins. In such a situation, only those beauty brands will be more successful in the coming years, which will be able to maintain the trust of customers for a long time along with understanding the changing youth preferences.