India’s beauty and personal care (BPC) market is on a robust growth trajectory, projected to reach $34 billion by 2028, according to the latest Nykaa Beauty Trends Report. This represents a compounded annual growth rate (CAGR) of 10-11% from its current valuation of approximately $21 billion.
The report highlights that India is poised to become the fastest-growing beauty and personal care market globally, with a growth rate surpassing other regions. E-commerce is identified as a key driver of this expansion, anticipated to grow at a remarkable CAGR of around 25%, positioning it as the fastest-growing segment within the market.
Rising consumer aspirations and increased disposable incomes are expected to propel the demand for premium beauty products, which are projected to reach $3-3.2 billion by 2028. The democratization of beauty expertise through social media platforms is significantly shaping consumer preferences, with an estimated 520-560 million users engaging with beauty content in 2023.
The report also notes a significant shift in trade channels, with online sales expected to match offline organized trade, accounting for 33% of the segment’s total turnover. This represents a substantial increase from the current share. Conversely, the share of unorganized offline trade channels is forecasted to decline from 55% in 2023 to 35% by 2028.
Nykaa’s statement underscores the transformative impact of digital platforms and the evolving consumer landscape in driving the future of India’s beauty and personal care market. As e-commerce continues to expand, it is set to play a pivotal role in shaping market dynamics and consumer behavior.
Overall, the report provides a comprehensive outlook on the growth potential of India’s BPC sector, reflecting broader trends in consumer preferences and technological advancements that are set to redefine the market in the coming years.
