Nykaa’s bold bet: Beauty and fashion to outgrow India’s entire e-commerce market by FY30

Nayar highlighted how consumer demographics are shaping this e-commerce surge.

Nykaa founder and CEO Falguni Nayar believes beauty and fashion will become the growth engines of India’s e-commerce revolution, capturing nearly 40 percent of the market by FY30. Speaking at the company’s 13th Annual General Meeting on Monday, she said these categories alone will surpass the size of India’s entire online retail market in FY25.

“The long-term potential is massive. Beauty and fashion together will be bigger than the entire e-commerce market of FY25,” Nayar said, positioning Nykaa at the center of this growth story.

A booming market ahead

The online beauty and personal care (BPC) segment is projected to triple to $15 billion by FY30, while the online fashion market is expected to grow more than three times to $60 billion in the same period. Together, these two categories will form the backbone of discretionary consumption, Nayar noted.

India, already the world’s third-largest retail market, is on track to expand faster than larger economies like the US and China over the next five years, she added.

AI at the heart of Nykaa’s strategy

Alongside category growth, Nayar underlined the role of artificial intelligence in transforming Nykaa’s operations. “AI has truly been given a seat at every meeting we have,” she said.

The company has set an internal target to have 50 percent of its code generated by AI by the end of this year, a benchmark that would put Nykaa well ahead of industry peers. “We expect our speed of execution to increase dramatically,” she added.

India’s digital shoppers power the boom

Nayar highlighted how consumer demographics are shaping this e-commerce surge. India already has 280 million online shoppers, on par with the US, and this number is expected to cross 400 million by 2030.

The shift is being driven by digital-native Gen Z consumers, who are poised to account for nearly half of India’s spending. “They prefer curated, discovery-led platforms, a space where we have a clear advantage,” she said.

A massive Indian opportunity

Framing the opportunity as both economic and cultural, Nayar said evolving demographics, rising consumption, and rapid technology adoption are combining to create unprecedented growth potential for India’s e-commerce.

“Nykaa is well-positioned for success as we operate in this high-growth environment where beauty and fashion are the fastest-growing categories,” she added.

(With inputs from PTI)