The Indian beauty and personal care market is estimated to grow to $30 billion by 2027, accounting for 5 percent of the global market, according to a report.
The Indian Beauty and Personal Care (BPC) market -- estimated to be around $19 billion in 2022 -- has very low per capita spend in the category but as the country prospers, the growth headroom will materialise strongly, said a joint report by Redseer Strategy Consultant and Peak XV (formerly Sequoia Capital India & Southeast Asia).
"As more consumers seek higher-quality products and adopt beauty and self-care routines, the market offers a promising landscape for brands to tap into," it said, adding that the market has witnessed the emergence of various home-grown brands as well.
India is uniquely positioned as one of the most attractive and fastest-growing BPC markets globally, the report said.
"The Indian BPC market is poised for rapid expansion, to be sized at USD 30 billion by 2027, comprising 5 per cent of the global BPC market," it said.
The growth is propelled by several factors, including rising incomes, rapidly rising middle-class, urbanisation and increasing participation of women in the economy, according to the report.
"Middle-class households are exposed to good quality products and have higher awareness; hence they have higher propensity to purchase branded products and through organised channels," it said.
Moreover, as the market evolves and grows further, the success of pure-play BPC brands will lead to creation of multiple hundred-million-dollar pure-play BPC brands in the country, the report said.
Traditionally, the Indian BPC market has been dominated by large FMCG players, but now with technology and emergence of new-age logistics partners, the market has opened up for a larger set of players.
"Additionally, Indian pure-play BPC players are getting better by layering their capabilities with learnings from the incumbents." "One of their key learnings is the importance of the offline channel. L'Oreal, Nykaa and Honasa are among the front-runners of pure-play BPC plays in India," is said.
On per capita BPC spends, the US leads with $313. China's per capita spend is $38, whereas India lags behind significantly at just $14.
"Online is a significant channel for BPC in India as it is projected to become a US$ 10 billion market by 2027, which will then account for roughly 33 per cent of the market," it said.
"From acne management to anti-ageing solutions, specialised 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," Peak XV MD Sakshi Chopra said.
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