3 days ago
India’s Beauty Market Set to Nearly Double by FY31
India’s beauty and personal care market is expected to become much bigger.
A report says it could almost double in size between FY26 and FY31.
More people are expected to buy products such as skincare, cosmetics, and grooming items.
Young consumers from Gen Z and Gen Alpha may make up nearly half of all spending.
Online shopping and organised stores are both expected to become more important.
Quick-commerce services may be used for restocking products, while specialised websites may help shoppers discover new items.
Many new beauty brands are expected to reach significant annual sales.
However, only a few may grow very large because keeping customers and controlling advertising costs is difficult.
Brands that encourage repeat purchases and improve profits may be valued more highly.
India’s beauty and personal care market could grow from $23 billion in FY26 to $42 billion by FY31E.
The sector is projected to expand at an annual compound growth rate of approximately 12 percent.
Beauty and personal care shoppers are expected to increase from 140 million in FY26 to 200 million by FY30E.
Gen Z and Gen Alpha could account for nearly half of sector spending by FY31E, up from about 32 percent in FY24.
Online and organised offline retail are expected to gain market share, while repeat purchases and profitability remain major challenges for brands.
- Who
- India’s beauty and personal care industry, consumers, retailers, and new-age beauty brands; the projections come from an Aditya Birla Capital report.
- What
- The market is projected to nearly double to $42 billion by FY31E and become the world’s fourth-largest BPC market by 2030.
- Where
- India.
- When
- The report was published on August 30, 2026; its projections cover FY26 through FY31E, with a shopper forecast through FY30E.
- Why
- Growth is expected to come from a larger consumer base, broader grooming routines, organised retail expansion, and greater digital discovery and distribution.
Key facts
- Projected market size
- $23 billion in FY26 to $42 billion by FY31E
- Projected growth rate
- Approximately 12 percent CAGR
- Projected shopper base
- 140 million in FY26 to 200 million by FY30E
- Young consumer spending
- Gen Z and Gen Alpha are projected to account for nearly 50 percent of spending by FY31E, compared with roughly 32 percent in FY24
- Online retail share
- Projected to rise from 25 percent in FY26 to 34 percent by FY31E
- Organised offline share
- Projected to rise from 27 percent in FY26 to 32 percent by FY31E
- New-age brands
- Brands with annual revenue above ₹1 billion are expected to increase from 70–80 in FY26 to more than 150 by FY31E
Quotes
Aditya Birla Capital report
Report projecting growth and changing consumer behavior in India’s beauty and personal care sector
“We believe only a small number would build enough repeat purchase and distribution to cross ₹10 billion revenue. Revenue scale alone is not enough. Companies that drive repeat purchases, control A&P, and improve margins as they grow should command a higher valuation.”
thehindubusinessline.com
“Beauty purchase decisions are increasingly made before the consumer reaches the checkout page or store. Reviews, creators, product claims, ingredients, and efficacy now play a larger role in discovery.”
thehindubusinessline.com
Sources
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