India’s Beauty Market to Hit $34 Billion by 2028, Says Nykaa Report

India is rapidly emerging as the fastest-growing beauty and personal care (BPC) market globally, projected to hit USD $34 billion by 2028, according to the latest Nykaa Beauty Trends Report. The study highlights a dynamic market poised to grow at a 10-11% CAGR over the next five years, with e-commerce leading as the fastest-growing segment, anticipated to achieve a CAGR of around 25%.

Key drivers of this growth include rising consumer aspirations, increased disposable incomes, and a significant shift towards premium beauty products. This segment is expected to reach USD 3-3.2 billion by 2028. The report, developed in partnership with Redseer Strategy Consultants, also underscores the impact of social media, which, with 520-560 million users in 2023, is profoundly influencing consumer choices and democratizing beauty expertise.

Nykaa, a leading beauty retailer in India, has played a pivotal role in this transformation by providing access to over 3600 beauty brands and championing global prestige and luxury brands. The report identifies Gen Z and young millennials, alongside consumers in non-metro cities, as key drivers of beauty consumption and market growth. Nykaa's content, education initiatives, and extensive omnichannel presence—including over 200 retail stores and Nykaa Superstore—are crucial in shaping consumer demand.

Anchit Nayar, Executive Director and CEO of Nykaa Beauty, commented, “As India ascends to become a major global beauty market, Nykaa is excited about its future. Our Beauty Trends Report reveals a market ready for exceptional growth, driven by premiumisation, technological advancements, and an evolving consumer base. Nykaa remains dedicated to leading this change by offering access to top beauty brands and enhancing our digital and physical channels.”

Anil Kumar, Founder and CEO of Redseer Strategy Consultants, added, “The Indian BPC market, currently valued at USD 21 billion, is set for transformative growth, with e-commerce expected to surge by 25% annually. The widespread influence of social media is creating informed, empowered consumers. Brands embracing omnichannel strategies and innovation will not only thrive but will redefine the beauty landscape in India.”

Nine Major Trends Shaping India’s Beauty Market:

1. Premium Beauty Consumption Surge: Increasing demand for high-quality, premium beauty products driven by higher incomes and discretionary spending.

2. Stepification and Innovation: Consumers are expanding their beauty routines with multi-step regimes and innovative products.

3. Gen Z and Young Millennials: This demographic is driving beauty trends with a focus on self-expression and proactive skincare.

4. Growth Beyond Metros: Emerging cities are becoming significant markets due to rising incomes and expanding beauty retail presence.

5. Rise of Homegrown Brands: Local beauty brands are gaining traction, driven by venture capital and innovation, though only a few have scaled significantly.

6. Expanding Marketing Ecosystem: Increased focus on influencer marketing and new platforms for engaging diverse audiences.

7. Ingredient-Centric Beauty: Consumers are increasingly prioritising ingredients for targeted skincare solutions.

8. Microtrend Revolution: Rapidly changing trends, influenced by celebrities, are reshaping the industry, requiring agile manufacturing.

9. Tech Integration: Advances in AI and technology are enhancing personalisation, shopping experiences, and supply chain efficiency.

This comprehensive report provides actionable insights for brands aiming to navigate and thrive in India’s evolving beauty market.

*(For more detailed insights on each trend, please refer to the Nykaa Beauty Trends Report)