Beauty and personal care will expand at an 11% CAGR.
India’s beauty and personal care market, presently valued at $16.8 billion, is poised to grow at a compound annual rate of 11%, with cosmetics and perfumes categories growing at a faster clip.
According to a joint report by international beauty brand Estée Lauder Co., and Gurgaon-based technology-business insights firm 1Lattice, a substantial portion of sales worth about $1.3 billion, are through e-commerce channels, which is expected to grow at a CAGR of 30% during FY22-27, followed by companies that retail beauty products in health and beauty stores, as well as modern grocery retail shops,
“The runway for growth in India is the 100 million women of which beauty is accessed by just 17-18 million,” said Rohan Vaziralli, general manager of Estée Lauder for India, run by ELCA Cosmetics Pvt. Ltd.
The report, released on the sidelines of the ‘Beauty&You’ India conference, which seeks to offer support to entrepreneurs in the beauty space. The Estée Lauder Co’s New Incubation Ventures organizes the event in a tie up with beauty retailer Nykaa. “India presents an exciting opportunity for the global beauty ecosystem,” the report said.
“The largest beauty companies globally are looking at India for their next phase of growth. The challenge now is to help entrepreneurs build healthy beauty businesses in India. Estée Lauder did that with Forest Essentials around the globe and we have done a similar project with Katrina Kaif in the form of Kay Beauty by Katrina,” said Anchit Nayar, executive director and chief executive, Nykaa Beauty.
The report added that premium BPC brands are expanding their distribution channels in India at a CAGR of 16%, making their products more accessible to consumers through an omnichannel presence. Urbanization is leading to the dynamic evolution of lifestyle and awareness and accelerating the usage of BPC products with a CAGR of 8% and 12% respectively in tier 1 and tier 2+ cities.
Modern grocery retailers as well as health and beauty specialist companies will grow at a similar CAGR of 15% respectively during the study period.
