News Update

India to Propel Global Beauty and Personal Care Market Worth $660 Billion: Redseer and Peak XV Report

• ByStartupStory     |    September 2, 2023

India is poised to play a substantial role in the global beauty and personal care (BPC) market, contributing to the $660 billion industry worldwide. By 2027, India’s BPC sector is projected to reach $30 billion, accounting for approximately 5% of the global opportunity, as per a report by Redseer Strategy Consultants and Peak XV Partners.

The global BPC market has exhibited remarkable potential in recent years and is expected to experience substantial growth, with estimates indicating a total market size of $660 billion by 2027, translating to a market capitalization of $2.2-$2.7 trillion.

Despite global disruptions caused by the 2020-21 lockdowns, the BPC market, encompassing both pure-play and FMCG-led brands across nations, demonstrated resilience. It underscores the fundamental human need that BPC products fulfill.

Consumers are increasingly seeking products tailored to their specific skin or body types and are willing to pay premiums for effective and safe solutions. This has led to rapid growth in the masstige and premium BPC categories. Pure-play BPC brands have disrupted the market by focusing on specific use cases, resulting in higher growth rates, gross margins, and profitability compared to FMCG-led BPC players. The largest pure-play BPC players achieved an average revenue growth five times that of the largest FMCG-led BPC players between 2017-22, according to the Redseer report.

The Indian BPC market stands out with the highest growth rate (CAGR of 10% from 2022-27) compared to comparable countries (the next highest being Indonesia at 8% and China at 7%). It is projected to reach $30 billion by 2027, constituting about 5% of the global opportunity.

The report emphasizes that the Indian BPC market’s growth potential is further enhanced by its under-penetration. While the U.S. leads in per-capita BPC spending at $313 and China at $38, India lags significantly at just $14. The report also highlights the significance of online channels in India, projecting it to become a $10 billion market by 2027, accounting for approximately 33% of the market.

Similar to the global trend, pure-play BPC brands are driving disruption in India, with the Indian BPC market growing twice as fast as FMCG-led brands. This underscores the importance of specialized, BPC-focused players. As the Indian BPC market matures, the report anticipates the emergence of multiple hundred-million-dollar pure-play BPC brands.

The transformation of the BPC landscape has led to the rise of innovative brands in India, such as L’Oréal, Nykaa, Honasa, and Pure Play Skin Sciences, offering niche products tailored to evolving consumer needs. These dedicated BPC players are agile in responding to market dynamics and are positioning themselves as leaders in this dynamic sector.

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