India’s Beauty Market to Reach ₹2.95 Lakh Crore by 2028, Growing at 10-11%

India’s beauty and personal care industry is witnessing a rapid transformation, fuelled by e-commerce expansion, global brand interest, and the growth of domestic players. The country has emerged as the fastest-growing online beauty market, with e-commerce and quick commerce sales increasing by 39% in value between June and November 2024 compared to the previous year. In contrast, physical store sales saw a modest 3% growth.

This shift towards online shopping signals a fundamental change in consumer behaviour, particularly among younger demographics. In 2024, 17% of Indian consumers purchased beauty products online, up from 13% a year ago. This growing trend is led by platforms such as Amazon, Myntra, Blinkit, Zepto, Nykaa, and Reliance Retail’s Tira, which are enhancing their digital presence to cater to the demand for convenience, variety, and influencer-driven trends.

India’s Beauty Market Set to Reach ₹2.95 Lakh Crore by 2028

India’s beauty and personal care market, currently valued at ₹2,43,236 crore (US$ 28 billion), is projected to grow at an annual rate of 10-11%, reaching ₹2,95,358 crore (US$ 34 billion) by 2028. While online retail is expanding rapidly, the organised offline sector is growing at a slower pace. Retailers like Shoppers Stop are adopting strategic approaches, such as launching exclusive stores for premium brands like MAC and Clinique and securing a distribution deal with Shiseido’s NARS Cosmetics.

Makeup sales have surged by 15.5%, while skincare products have seen a 10.5% increase. This fierce competition among domestic and international brands is shaping the industry landscape, with major players like Reliance, Tata Group, and Hindustan Unilever (HUL) aggressively expanding their presence.

Challenges and Consolidation in the Market

Despite the rapid growth, scaling and profitability remain significant challenges for beauty startups. Established companies are capitalising on the market momentum through acquisitions and strategic investments. A notable example is HUL’s acquisition of Jaipur-based beauty brand Minimalist for ₹2,955 crore (US$ 340.16 million), highlighting the trend of consolidation within the sector.

Additionally, India’s beauty e-commerce market is expected to grow at a compound annual growth rate (CAGR) of 25%, reinforcing the country’s position as a global beauty powerhouse. As more consumers embrace digital-first shopping experiences, the industry is poised for sustained expansion, driven by innovation, product diversification, and evolving consumer preferences.

India’s beauty and personal care industry is on an upward trajectory, with digital channels playing a crucial role in shaping its future. As major players and startups continue to innovate, the market is set to become a key driver of global beauty trends.

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