According to a leading beauty e-commerce platform, by 2025 Indian beauty product industry will hit Rs. 127 crore.
It is estimated that the Indian beauty market which now stands at Rs. 97 crores will grow by 25 to 30 percent in 2025..
Preeti Gupta, Chief Business Officer of Nykaa, while addressing the Internet Commerce Summit (ICS) 2023 recently in Bangalore said that the Indian beauty and fashion market industry has seen enormous transition from offline to direct to consumer (D2C).
The rising growth in the beauty industry has led beauty stores such as Nykaa to list themselves on the stock exchanges. The market isexpected to grow at Compound Annual Growth Rate (CAGR) of 6.7 per cent over the next five years. It is mainly driven by locally-produced better quality products.
Sonali Chayani, a makeup influencer, said, “The Indian cosmetics industry is growing. As an influencer, I always support local Indian brands and suggest my viewers to try it. Indian brands are competing with foreign brands as they can provide high-quality products at low cost.”
Beauty stores such as Nykaa show that the Indian beauty product players are confident of the industry’s adaptability and innovation, especially in the face of evolving consumer needs and preferences.
Ayan, an e-commerce manager of Insight Cosmetics, said, “We provide our products on different online shopping platforms. Insight Cosmetics is an Indian brand, and we had good profits this year. Ourbusiness is growing every year. We launch new products for our customers every three months.”
Notably, more consumers prefer locally-made products as they believe their quality is as good, if not better than that of foreign brands.
Jigyansa Das, a Bachelor of Business Administration (BBA) student, said, “As a buyer, I prefer Indian brands over foreign brands. The quality of Indian makeup products is getting better; they only need proper advertisement to boost their business.”
Because of a growing younger population, most Indian brands are betting on the vast opportunity the industry presents. Dr Amit, an economics professor, said, “This sector’s growth depends majorly on the size of the population, especially youth population. Income level, preference for luxury things and occupation of buyers are also factors on which the growth of beauty industry depends.”
Sumanta Sinha contributed to this story.
