India Beauty Salon Market Outlook to 2028

India Beauty Salon Market Overview

• The India Beauty Salon market is valued at USD 10.8 billion, with growth attributed to increased consumer interest in personal grooming and wellness. The expanding middle class and the rising participation of women in the workforce have driven demand for premium beauty services. The growing awareness of skincare and haircare, influenced by social media and celebrity endorsements, has created a boom in the salon industry. Key services like hair care, skincare, and nail care continue to thrive due to the heightened focus on appearance and self-care.

• Cities such as Mumbai, Delhi, and Bangalore dominate the market due to their high population density, affluent consumers, and the presence of high-end salon chains. These cities have witnessed rapid urbanization, leading to a rise in consumer expenditure on beauty and wellness services. The cosmopolitan nature of these cities, with their diverse and fashion-conscious populations, has further boosted the demand for premium salon services, contributing to their dominance in the market.
• The Indian governments Skill India initiative is focused on training and certifying beauty professionals. In 2024, the Ministry of Skill Development & Entrepreneurship aims to train over 200,000 individuals in beauty and wellness under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) scheme. This initiative seeks to address the shortage of skilled labor in the beauty salon market by providing vocational training in hairdressing, skincare, and wellness services, which will help boost service quality and employment in the industry.

India Beauty Salon Market Segmentation

By Service Type: The market is divided into hair care, skin care, and nail care services. Hair care remains the largest segment, driven by the cultural importance of hair grooming and the influence of celebrities and media. Services like haircuts, styling, coloring, and treatments have become increasingly popular, especially among urban consumers seeking professional-grade services to follow the latest trends. The rise in demand for chemical hair treatments such as keratin, smoothening, and coloring is a key factor in the dominance of this sub-segment.

By End-User: The market is divided into men and women. Women dominate the market, accounting for a larger share due to the wide array of services available to them, including haircare, skincare, and body treatments. The increasing trend of self-care, especially with the growing influence of social media, has driven the demand for professional beauty services among women. Urbanization and the rise in working women have also contributed to the dominance of this segment.

India Beauty Salon Market Competitive Landscape

The market is highly competitive, with several prominent players offering a diverse range of services. Major salon chains dominate the landscape by focusing on expansion, partnerships, and innovation to cater to a wider audience.

India Beauty Salon Market Analysis

Market Growth Drivers

• Increasing Female Workforce Participation: The growing number of women entering the workforce in India is significantly driving the beauty salon market. According to India's Ministry of Labour and Employment, approximately 432 million women are employed as of 2024. With more disposable income and a growing emphasis on personal grooming in the corporate sector, women are increasingly seeking professional beauty services, contributing to the rise of salon visits.
• Rising Health-Consciousness and Grooming Awareness: The market is experiencing growth due to heightened awareness of grooming and wellness. As of 2024, surveys by the National Sample Survey Office (NSSO) reveal that nearly 240 million people in India actively engage in personal grooming and wellness practices. Increased awareness of the health benefits of skincare treatments and grooming has led to a surge in demand for organic beauty services, skin therapies, and anti-aging treatments in salons.
• Expansion of Organized Salon Chains: The market is witnessing the rapid expansion of organized salon chains like Lakm Salon and Naturals, which are penetrating tier II and tier III cities. As of 2024, over 13,000 organized salons operate across India, indicating the growing dominance of branded beauty service providers. This growth is driven by the rising demand for standardized and quality services.

Market Challenges

• Shortage of Skilled Beauty Professionals: The lack of adequately trained and certified beauty professionals remains a hurdle for salon operators in India. According to the National Skill Development Corporation, in 2024, there is an estimated shortage of 1.2 million trained beauty professionals in the industry.
• Regulatory Compliance and Taxation Issues: The complex regulatory environment in India, including licensing, labor laws, and taxation (especially Goods and Services Tax - GST), poses operational challenges for the beauty salon industry. As of 2024, beauty salons are taxed under GST at a rate that adds to the financial burden, especially for smaller salons.

India Beauty Salon Market Future Outlook

Over the next five years, the India Beauty Salon industry is expected to witness robust growth, driven by evolving consumer preferences, increased internet penetration, and the rise of wellness-focused services.

Future Market Opportunities

• Rural Market Expansion Will Drive Growth: In the next five years, the Indian beauty salon market is expected to expand into rural areas, driven by government initiatives and rising consumer awareness. By 2029, over 180,000 rural salons are projected to operate, up from 110,000 in 2024, as salon chains focus on tier III and rural markets. This expansion will contribute to increased accessibility to professional grooming services in previously untapped regions.
• Sustainability Will Become a Key Differentiator: The focus on sustainable and eco-friendly beauty services is anticipated to dominate the market over the next five years. By 2029, the demand for organic and environmentally responsible beauty products and services will see significant growth, with more than 50,000 beauty salons expected to offer eco-friendly treatments. This trend will be driven by consumer preferences for non-toxic, cruelty-free, and natural beauty solutions.