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Market Reports

Beauty and Personal Care Industry in India

Beauty and Personal Care Industry in India

1

Quick Facts: Beauty and Personal Care Industry

2

Overview of Beauty and Personal Care Industry

3

Government Initiatives

4

Megatrends In Beauty and Personal Care Industry

5

Why Invest in Beauty and Personal Care Industry?

6

Our Team

Quick Facts: Beauty and Personal Care Industry

  • The Indian cosmetics industry is primarily divided into five segments: skin care, hair care, oral care, fragrances and colour cosmetics
  • Top 20 brands hold ~32% of the Beauty and Personal Care market in India
  • Currently, India is the 6th largest Beauty and Personal Care (BPC) Market in the world
  • Per capita spend on beauty and personal care products in India is expected to reach around INR 2,300-2,500 by 2030
  • By 2025, India is expected to account for 5% of the global cosmetics market and rank among the top five countries worldwide in terms of revenue
  • The Central Drugs Standard Control Organization (CDSCO) is responsible for regulating the manufacture, import, distribution and sale of cosmetics in India

Overview of Beauty and Personal Care Industry

India’s Beauty and Personal Care Market Growth (in INR Bn)

The beauty and personal care industry includes several segments: skin care, hair care, oral care, fragrances and colour cosmetics. Many multinational brands have entered the Indian market, drawn by the country’s large population and increasing demand. This has increased competition for domestic brands. Affordable skincare products are driving mass market growth, while the premium skincare segment is growing due to rising interest in effective, dermatologist-recommended solutions like sun protection and anti-pollution skincare.

Haircare is also evolving, with a focus on scalp health and repair, often called the “skinification” of haircare. Ayurvedic and botanical ingredients are being combined with modern formulas to attract a wider audience. Fragrances are becoming more popular too, especially natural and long-lasting scent profiles.

The market is also seeing rising demand for natural, organic, herbal and ayurvedic cosmetics as consumers grow more aware of the harmful effects of chemical-based products. This shift is helping India use its natural strengths and traditions in beauty.

Overview of Beauty and Personal Care Industry

Government Initiatives

India’s Comprehensive Economic Partnership Agreement (CEPA)

  • India’s CEPA agreements with countries like the UAE, South Korea, Japan and ASEAN nations offer duty waivers, easing the entry of global cosmetic brands.
  • These trade deals have increased competition, encouraging Indian brands to innovate, enhance quality and upgrade marketing strategies.
  • The favorable trade environment has attracted foreign investment, leading to new manufacturing units, distribution networks and collaborations with local firms.

DPIIT and Estee Lauder Partnership to Boost Beauty Startups in India

  • In March 2025, the Department for Promotion of Industry and Internal Trade (DPIIT) and Estee Lauder Companies (ELC) signed an MoU to support innovation and entrepreneurship in India’s growing beauty and personal care sector.
  • The partnership will merge Startup India’s platform with ELC’s BEAUTY&YOU India program, offering startups funding, mentorship, industry knowledge and global networking opportunities.
  • ELC is expanding BEAUTY&YOU India to include a new category specifically aimed at empowering women-led beauty startups.

Stricter Quality Norms for Cosmetics

  • The Indian government is considering introducing strict quality control norms for various beauty products to tackle the influx of low-quality imported cosmetics.
  • These norms, known as Quality Control Orders (QCOs), aim to ensure that cosmetics meet specific safety and performance standards.
  • The move comes in response to a noticeable increase in the import of substandard beauty products into the Indian market.

ONDC to Democratize Digital Commerce in India

  • The Open Network for Digital Commerce (ONDC), launched by DPIIT in April 2022, is designed to create an open, inclusive digital commerce ecosystem using open-source protocols.
  • ONDC provides a level playing field for buyers, sellers and service providers, especially MSMEs, by reducing reliance on dominant e-commerce platforms.
  • Initially focused on food and grocery, ONDC has now expanded to cover categories like fashion, beauty, personal care and more.

Megatrends In Beauty and Personal Care Industry

Surge in Demand for Niche & Artisanal Fragrances

  • Growing consumer preference for personalized and distinctive scents is fueling demand for niche and artisanal perfumes.
  • Homegrown and luxury boutique brands are gaining traction by focusing on craftsmanship, storytelling and natural ingredients.
  • Urban millennials and Gen Z show a growing preference for international brands, natural / organic products and personalized beauty solutions.

Virtual Try-On Driving Personalized Beauty Experiences

  • Consumers are increasingly seeking products tailored to their individual skin types, tones and preferences.
  • Virtual try-on tools and AI-powered solutions are transforming how shoppers discover and evaluate products, enabling more accurate and satisfying choices.
  • Tech-enabled personalization is enhancing the overall customer journey, increasing the likelihood of purchase by offering a seamless and efficient shopping experience.

Redefining Male Grooming

  • Brands are expanding beyond traditional shaving kits, offering a wide range of male-specific grooming and skincare products to meet growing demand.
  • Marketing strategies are shifting from macho stereotypes to inclusive messaging, leveraging science-backed formulations and influencer-driven narratives.
  • Homegrown labels like D’you, Hivado, The Man Company and Yaan Man are leading the way with gender-neutral products designed for Indian skin and climate.

Sustainable & Ayurvedic Hair Care on the Rise

  • The hair care sector is evolving rapidly, with a strong focus on sustainability and eco-conscious innovation, as consumers seek products that support both hair health and environmental well-being.
  • Rising awareness of the harmful effects of synthetic chemicals is driving preference for natural, organic and holistic hair care solutions.
  • There is growing demand for formulations rooted in traditional and Ayurvedic ingredients like amla, henna and coconut oil, blending ancient wisdom with modern science.

Why Invest in Beauty and Cement Personal Care Industry?

Young, Aspirational and Digital-First Consumer Base

  • Over 50% of India’s population is under 30 years, leading to strong demand for grooming, skincare and cosmetics.
  • Consumers are increasingly digitally engaged: beauty e-commerce in India grew by ~30% in 2024.
  • Social media and influencers strongly shape purchasing decisions. Over 60% of Gen Z consumers rely on digital reviews and recommendations.

Underpenetrated Yet Expanding Market

  • India’s per capita beauty and personal care spend is still about INR 1,200–1,400, significantly lower than China and the US, indicating large untapped potential.
  • Rural markets, accounting for ~35–40% of beauty sales, are seeing increased product adoption driven by better distribution and rising incomes.
  • Men’s grooming, currently less than 10% of the market, is growing at >10% CAGR as awareness and spending rise.
  • Emerging categories like dermacosmetics, salon-grade products and K-beauty formats are still nascent but gaining traction.

Surge in Online and D2C Channels

  • Online distribution is the fastest-growing channel, with e-commerce and D2C brands markedly expanding reach across urban and rural regions.
  • Influencer-driven and tech-enabled retail strategies by Indian brands like Nykaa, Sugar Cosmetics and Mamaearth are enhancing consumer engagement and loyalty.
  • India’s digital ecosystem, fuelled by a young, tech-savvy population makes it an ideal market for online and direct-to-consumer beauty businesses.

Policy Support and ‘Make in India’ Push

  • Import duties on finished cosmetics have encouraged local manufacturing, attracting both global and Indian players to set up plants.
  • Government initiatives promoting MSMEs and start-ups help domestic brands scale faster.
  • Stronger regulations under the Drugs and Cosmetics Act and new draft rules for e-commerce ensure better product quality and consumer trust.

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