India’s beauty market to hit US$ 34 Billion by 2028

India’s beauty and personal care market is set to grow at a CAGR of 10-11%, reaching US$ 34 billion by 2028, according to Nykaa’s Beauty Trends Report. E-commerce is expected to be the key growth driver, with a 25% CAGR. The premium beauty segment is projected to grow to US$ 3-3.2 billion, driven by rising incomes and social media influence.

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India’s beauty and personal care (BPC) market is projected to grow at a compounded annual growth rate (CAGR) of 10-11%, reaching US$ 34 billion by 2028, according to Nykaa’s Beauty Trends Report. Currently valued at US$ 21 billion, the report emphasizes that “India is the fastest-growing BPC market globally,” driven by factors like rising aspirations and higher incomes. Premium beauty products are expected to see significant growth, reaching US$ 3-3.2 billion by 2028.

E-commerce is identified as the primary driver of this growth, with the sector anticipated to achieve a 25% CAGR. The report highlights that “online trade channels for BPC are expected to grow at around 25% CAGR” and will be on par with organized offline trade, accounting for 33% of total turnover by 2028. Meanwhile, the share of unorganized offline channels is predicted to decline from 55% in 2023 to 35%.

The study, conducted in collaboration with Redseer, attributes this growth to several factors. Rising discretionary spending, increased social media expertise, and wider accessibility through e-commerce channels are key contributors. Moreover, consumer demand for premium products and innovations, such as new formats and ingredients, is driving product development in the sector. The report concludes that the Indian BPC market is set for significant expansion, led by both e-commerce and the premium segment.