India’s beauty market, ranked fourth globally, is evolving rapidly due to premiumisation, changing consumer demographics, and technological advancements. Nykaa’s ‘Beauty Trends Report’ reveals nine trends reshaping the industry, helping brands navigate and succeed in this dynamic market.
The report highlights a surge in premium beauty consumption reshaping the industry. This trend is fueled by various factors, including access to global brands, expanded beauty routines, product innovations, rising beauty aspirations, increased spending power, and the growth of dual-income households.
The study has identified GenZ and young millennials along with customers in non-metro cities as the audiences spearheading beauty consumption and growth.
Anchit Nayar, Executive Director and CEO, of Nykaa Beauty said, “As India rapidly ascends to become one of the world’s most influential beauty markets, we at Nykaa are incredibly optimistic about its future. The insights from our Beauty Trends Report clearly show a market poised for extraordinary growth, driven by premiumization, technological advancements, and a new generation of discerning consumers. Nykaa remains committed to leading this transformation by democratizing access to the world’s best beauty brands, fostering innovation, and expanding our reach across both digital and physical channels. We believe that by staying true to our core values of authenticity and customer-centricity, we will not only grow with the market but also play a pivotal role in shaping the future of beauty in India.”
Anil Kumar, Founder, and CEO of Redseer Strategy Consultants, remarked, “The Indian Beauty and Personal Care market, valued at USD 21 billion, is on the brink of a transformative journey, projected to grow at a robust 10-11% CAGR over the next five years. This sector is not merely expanding; it’s rapidly evolving, with e-commerce expected to surge by 25% annually, leading the way. The democratization of beauty expertise through social media, now influencing over 500 million users, is ushering in a new era of informed and empowered consumers. Brands that embrace this evolution, leveraging omnichannel strategies and innovative offerings, will not only thrive but will shape the future of beauty in India. The coming years will be pivotal as we witness a market that doesn’t just grow—it redefines itself.”
The key insights from the report include:
India’s Beauty Market Growth Forecast: India’s beauty market is set to experience substantial expansion, with an anticipated growth rate of 10-11% compounded annual growth rate (CAGR) over the next five years. This robust growth trajectory highlights the market’s dynamic nature and increasing consumer demand.
E-Commerce’s Role in Market Expansion: E-commerce is expected to be a primary driver of this growth, emerging as the fastest-growing segment within the beauty sector. The online beauty market is projected to achieve a remarkable CAGR of approximately 25%, reflecting the increasing preference for digital shopping and the convenience it offers.
Surge in Premium Beauty Segment: Rising aspirations and growing incomes among Indian consumers are significantly impacting the premium beauty market. This segment is forecasted to reach between USD 3 billion and USD 3.2 billion by 2028, driven by the desire for high-quality products and luxury beauty experiences.
Impact of Social Media on Beauty Trends: The democratization of beauty expertise through social media is profoundly influencing consumer decisions. With an estimated 520-560 million users in 2023, social media platforms are playing a crucial role in shaping beauty trends and preferences, making beauty knowledge more accessible and diverse.
