India Beauty and Personal Care Market Outlook to 2028

India Beauty and Personal Care Market Outlook to 2028

• The India beauty and personal care market reached a valuation of USD 28 billion, based on a five-year historical analysis. This substantial market size is driven by factors such as rising disposable incomes, rapid urbanization, and an increasing awareness of personal grooming and hygiene among consumers. The rise of digital platforms and e-commerce has also made beauty products more accessible, further fueling market growth.

• In India, Tier 2 and Tier 3 cities like Jaipur, Lucknow and Surat have emerged as significant contributors to the beauty and personal care market. This dominance is attributed to the expanding middle-class population, increased disposable incomes, and growing aspirations for improved lifestyles in these regions. The penetration of digital media and e-commerce platforms has also played a crucial role in making beauty products more accessible to consumers beyond the major metropolitan areas.
• The government is set to introduce the Drugs, Medical Devices and Cosmetics Bill, 2023, which aims to replace the outdated Drugs and Cosmetics Act, 1940. This new bill is expected to introduce stricter guidelines and modernize the regulatory framework for cosmetics, drugs, and medical devices.

India Beauty and Personal Care Market Segmentation

• By Product : The India beauty and personal care market is segmented by product type into skincare, haircare, makeup and colour cosmetic products, deodorants/fragrances, and others. Among these, skincare products hold a dominant market share, driven by increasing consumer awareness about skin health and the availability of a wide range of products catering to diverse skin concerns. The rising influence of social media and beauty influencers has also contributed to the growth of this segment.

• By Type : The India Beauty and Personal Care Market is segmented by type into Inorganic, Organic, and Vegan products. Inorganic beauty products continue to dominate due to their affordability, long shelf life, and widespread availability across all retail channels. However, organic beauty products are witnessing rapid growth as consumers prioritize natural ingredients and chemical-free formulations.

India Beauty and Personal Care Market Competitive Landscape

The India beauty and personal care market is characterized by the presence of both domestic and international players, leading to intense competition. Major companies like Avon Products Inc., Beiersdorf AG, Colgate-Palmolive Company, Coty Inc. and Kao Corporation have established strong brand recognition and extensive distribution networks, enabling them to maintain significant market shares. Additionally, emerging local brands are leveraging natural and organic product lines to cater to evolving consumer preferences, adding to the competitive dynamics of the market.

India Beauty and Personal Care Industry Analysis

Growth Drivers

• Rise of Organic and Natural Beauty Products: Consumers in India are increasingly shifting towards organic and natural beauty products due to concerns about skin health and sustainability. According to a survey by the Federation of Indian Chambers of Commerce & Industry (FICCI), 71% of Indian consumers prefer natural beauty products over synthetic ones. This trend of increased use of organic beauty products is propelled by growing awareness of environmental and health-conscious choices.
• Growth of Men's Grooming Products: The Indian men's grooming market has been expanding rapidly, with an increasing number of men embracing skincare, haircare, and grooming products. This segment is witnessing an impressive growth, driven by changing attitudes toward self-care and increased marketing targeting male consumers. This trend is expected to continue, especially in urban areas.
• Digital Influence & Beauty Awareness: 80% of surveyed shoppers discover beauty brands on social media, with 92% finding them on Meta platforms like Instagram and Meta. Influencer marketing, beauty vlogs, and product reviews on Instagram, YouTube, and Amazon have expanded product awareness. This has fueled demand for customized beauty solutions, organic products, and new-age cosmetic trends in Indias evolving beauty landscape.

Challenges

• High Market Competition: India's beauty and personal care market is highly competitive, with over 500 brands, including global giants like L'Oral, Unilever, and Procter & Gamble, alongside local disruptors such as Mamaearth and Sugar Cosmetics. This intense competition leads to price wars, high advertising costs, and brand differentiation struggles, making it harder for new entrants to establish strong consumer loyalty.
• Regulatory Hurdles & Compliance Costs : All imported cosmetics must be registered with the CDSCO, and they must comply with the quality and safety standards specified under the Ninth Schedule or other applicable standards. As of 2024, CDSCO introduced new regulations limiting the number of products per application for cosmetic registrations to 50.

Future Outlook

Over the next five years, the India beauty and personal care market is expected to exhibit robust growth, driven by continuous product innovations, increasing consumer spending on premium products, and the expansion of organized retail and e-commerce channels. The growing trend towards natural and organic products is also anticipated to create new opportunities for market players. However, companies will need to navigate challenges such as regulatory compliance and the threat of counterfeit products to capitalize on the market's potential fully.

Opportunities

• Emerging Rural Beauty Markets : Demand for affordable skincare, herbal cosmetics, and personal hygiene products has grown, with Tier 2 and Tier 3 cities like Jaipur and Bhopal becoming high-growth hubs. FMCG giants are expanding rural distribution networks to tap into this rapidly evolving consumer segment.
• Growing Demand for Organic & Ayurvedic Beauty : A shift towards chemical-free, organic, and Ayurvedic beauty products is accelerating due to increased awareness of harmful synthetic ingredients. Brands like Kama Ayurveda, Biotique, and Just Herbs are thriving as consumers prioritize natural formulations. The governments push for Ayurveda-based industries and strict FSSAI regulations on herbal products further validate this emerging trend.