This new report, developed in collaboration with Redseer, sheds light on the key trends shaping the future of India’s beauty industry and offers insights into the factors driving its exponential growth
India’s beauty and personal care (BPC) industry is on track for a transformative journey, with the market expected to soar to USD 34 billion by 2028, according to the newly released Nykaa Beauty Trends Report. The report highlights that the sector will grow at a Compound Annual Growth Rate (CAGR) of 10-11 per cent over the next five years, driven primarily by rising aspirations, increasing incomes, and e-commerce, which is forecasted to grow at an impressive 25 per cent annually.
As the world’s fourth-largest beauty market, India is at a pivotal point in its evolution, marked by premiumisation, changing consumer demographics, and technological innovations. This new report, developed in collaboration with Redseer, sheds light on the key trends shaping the future of India’s beauty industry and offers insights into the factors driving its exponential growth.
Premiumisation Fuels Market Expansion
A key finding of the report is the rise of premium beauty consumption, which is driving a seismic shift within the industry. The demand for premium beauty products, fueled by the growth of high-income households and increased discretionary spending, is expected to propel the premium beauty segment to reach USD 3-3.2 billion by 2028. Indian consumers are increasingly seeking superior quality, research-driven results, and exclusive brand experiences, pushing beauty brands to expand their offerings in both products and services.
Anchit Nayar, Executive Director and CEO of Nykaa Beauty, emphasised the significance of this premiumization trend. “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 premiumisation, technological advancements, and a new generation of discerning consumers.”
Nykaa has been instrumental in democratising access to over 3,600 beauty brands in India, including global prestige and luxury names. The platform caters to the largest base of premium beauty buyers in the country and hosts an extensive assortment of premium and luxury products. Nykaa’s content-driven education ecosystems and omnichannel strategies have played a critical role in shaping demand, particularly among younger consumers and those in non-metro cities.
Ecommerce: The Biggest Growth Driver
India’s ecommerce sector is set to be the fastest-growing segment within the beauty industry, with a CAGR of 25 per cent over the next five years. Online platforms have been pivotal in making beauty products accessible to a broader audience across the country, particularly in tier-2 and tier-3 cities. With over 520-560 million users in 2023, social media has played a major role in the democratisation of beauty expertise, allowing consumers to make more informed purchasing decisions.
According to Anil Kumar, Founder and CEO of Redseer Strategy Consultants, “The Indian Beauty and Personal Care market is not merely expanding; it’s rapidly evolving. The democratisation 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 shape the future of beauty in India.”
Changing Consumer Demographics
The rise of Gen Z and young millennials, who constitute approximately 28-30 per cent of India’s population, is another major factor influencing the beauty market’s trajectory. These consumers are redefining beauty by focusing on self-expression, proactive skincare, and bold new trends. They are digital natives who are comfortable experimenting with innovative beauty products and routines, which has led to the emergence of trends like “specification”—the adoption of multi-step beauty routines with niche and innovative products.
The report also highlights the significant growth of beauty consumption beyond metropolitan areas. Non-metro cities are emerging as critical markets for beauty brands, driven by rising incomes, greater aspirations, and the increasing physical presence of beauty retailers in these regions.
Technological Innovations: AI And Personalisation
Technology is rapidly transforming India’s beauty landscape. Artificial intelligence (AI) and personalization are becoming integral to the consumer experience, enabling brands to offer specialised recommendations, seamless shopping experiences, and efficient supply chain processes. From long-tail searches to hyper-targeted marketing, beauty brands are leveraging AI to meet the growing demands of discerning consumers with precision and speed.
Nayar emphasised Nykaa’s commitment to embracing innovation in shaping the future of India’s beauty industry. “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.”
Key Trends Shaping India’s Beauty Market
The Nykaa Beauty Trends Report highlights nine key trends shaping the future of beauty consumption in India. Aspirational premium beauty is on the rise, driven by increasing incomes and discretionary spending as consumers seek superior quality and exclusive brand experiences. Specification is becoming more common, with sophisticated, multi-step routines and niche products expanding beauty baskets. Digital natives, especially Gen Z and millennials, are influencing trends through self-expression, skincare, and bold new looks.
Growth in non-metro cities is significant, fueled by rising incomes and aspirations. Homegrown brands are emerging, though only a few have successfully scaled, with many seeking partnerships and fresh investments. Influencer marketing remains dominant, with new platforms engaging diverse audiences. Ingredient-focused beauty is gaining traction as consumers seek targeted skincare solutions.
Rapidly shifting microtrends, often celebrity-driven, are reshaping preferences, requiring agile responses from brands. Lastly, AI and technology are transforming the beauty landscape with personalised recommendations, seamless shopping experiences, and more efficient supply chains.
A Transformative Journey Ahead
With India’s beauty market poised for extraordinary growth, the next five years will be pivotal. Brands that innovate, adapt, and embrace omnichannel strategies will thrive in this rapidly evolving landscape. As India ascends to become one of the world’s largest beauty markets, consumers can look forward to an exciting future where beauty is not only accessible but also personalised and sustainable.
