India’s Personal Care Market Expected to Reach $34 Billion by 2028: Nykaa
The beauty and personal care market in India is on a trajectory of robust growth, with Nykaa Beauty Trends Report forecasting a substantial increase to $34 billion by the year 2028. Currently estimated to be around $21 billion, the market is expected to expand at a compounded annual growth rate of 10-11 per cent, making it the fastest-growing sector in the global beauty and personal care industry.
E-commerce is set to be a significant driver of this growth, with a projected CAGR of approximately 25 per cent. The rise in disposable incomes and aspirations among Indian consumers is fueling the demand for premium beauty products, expected to reach $3-3.2 billion by 2028. Furthermore, the democratization of beauty expertise through social media is influencing consumer choices, with an expected 520-560 million users by 2023.
The report highlights the shifting landscape of trade channels in the beauty and personal care segment. Online channels are anticipated to grow at a CAGR of 25 per cent, eventually accounting for 33 per cent of the total turnover. In contrast, the share of unorganized offline trade channels is expected to decrease from 55 per cent in 2023 to 35 per cent by 2028, aligning more closely with the organized offline trade sector.
Subheadings:
E-commerce Driving Growth in the Beauty and Personal Care Market
Rise of Premium Beauty Segment in India
Impact of Social Media on Consumer Choices
E-commerce Driving Growth in the Beauty and Personal Care Market
The proliferation of e-commerce platforms has revolutionized the way consumers purchase beauty and personal care products in India. With the convenience of online shopping and a wide array of products available at their fingertips, more and more consumers are turning to digital channels for their beauty needs. The Nykaa Beauty Trends Report projects e-commerce to be the primary driver of growth in the market, with a projected CAGR of 25 per cent.
The ease of browsing through products, reading reviews, and comparing prices online has made e-commerce a preferred shopping destination for many consumers. Additionally, the availability of exclusive deals, discounts, and loyalty programs on online platforms further incentivizes customers to make their beauty purchases online. As a result, e-commerce is poised to play a significant role in shaping the future of the beauty and personal care market in India.
Rise of Premium Beauty Segment in India
The increasing disposable incomes and evolving aspirations of Indian consumers are contributing to the rise of the premium beauty segment in the country. With a projected market size of $3-3.2 billion by 2028, the premium beauty segment is expected to witness significant growth in the coming years. Consumers are increasingly willing to invest in high-quality, luxury beauty products that offer superior results and experiences.
The demand for premium beauty products is being driven by factors such as brand reputation, product efficacy, and unique formulations. Consumers are willing to pay a premium for products that cater to their specific needs and preferences, reflecting a growing trend towards personalized beauty solutions. The rise of the premium beauty segment underscores the changing preferences of Indian consumers who are seeking out more sophisticated and indulgent beauty experiences.
Impact of Social Media on Consumer Choices
The democratization of beauty expertise through social media platforms has had a profound impact on consumer choices in the beauty and personal care market. With the increasing influence of beauty influencers, bloggers, and vloggers on platforms like Instagram, YouTube, and TikTok, consumers are exposed to a wealth of beauty content and recommendations. This has not only transformed the way consumers discover and engage with beauty products but has also empowered them to make more informed purchasing decisions.
Social media serves as a platform for brands to showcase their products, engage with consumers, and build a loyal following. By leveraging the power of social media marketing, beauty brands can reach a wider audience, drive brand awareness, and foster brand loyalty. The Nykaa Beauty Trends Report highlights the significant role that social media plays in shaping consumer preferences and driving growth in the beauty and personal care market in India.
In conclusion, the beauty and personal care market in India is poised for substantial growth in the coming years, driven by factors such as e-commerce, the rise of the premium beauty segment, and the influence of social media. With a projected market size of $34 billion by 2028, the industry is set to undergo significant transformation, offering new opportunities for brands, retailers, and consumers alike. As the market continues to evolve, it will be essential for stakeholders to adapt to changing consumer preferences and market dynamics to capitalize on the growth potential in the beauty and personal care sector.