India's Beauty Market to Hit $42 Billion
India's beauty market is set to nearly double to $42 billion by FY31, becoming the world's fourth-largest by 2030, fueled by youth and online sales.
India's beauty and personal care (BPC) market is projected to nearly double from USD 23 billion in FY26 to USD 42 billion by FY31. This expansion will make India the fourth-largest global BPC market by 2030, according to a new report from Aditya Birla Capital. The domestic sector is expected to grow at a compound annual rate of approximately 12 percent.
A significant runway for growth exists. Currently, only about 15 percent of India's internet users are active BPC shoppers. This shopper base is forecast to expand from 140 million in FY26 to 200 million by FY30.
Demographic Drivers and Retail Evolution
A major demographic shift will power this growth. Spending by Gen Z and Gen Alpha consumers is projected to rise from roughly 32 percent of the total in FY24 to nearly 50 percent by FY31. The report attributes the overall growth trajectory to an expanding consumer base, broader personal grooming routines, and gains by organised retail formats.
Purchase decisions are changing. "Beauty purchase decisions are increasingly made before the consumer reaches the checkout page or store," the report noted. It states that reviews, creators, and product claims now play a larger role in discovery.
The retail structure will remain a multi-channel ecosystem. Buyers will select specific avenues based on the transaction type. The report provides forecasts for channel share growth between FY26 and FY31.
| Channel | FY26 Share | FY31E Share |
|---|---|---|
| Online | 25% | 34% |
| Organised Offline Retail | 27% | 32% |
Within this structure, quick commerce is positioned for replenishment orders. Specialised vertical platforms are seen as key for discovery, assisted purchases, and premium merchandise.
Brand Landscape and Value Determinants
Launching a brand has become easier. "Digital advertising, marketplaces and contract manufacturing have made it easier to launch a beauty brand," the report stated. The number of new-age brands with annual revenues above Rs 1 billion is anticipated to jump from 70-80 in FY26 to over 150 by FY31.
Scaling further, however, presents hurdles. The Aditya Birla Capital analysis suggests only a small number of brands will build sufficient repeat business and distribution to cross Rs 10 billion in revenue. "Revenue scale alone is not enough," the report observed. It argues that companies which drive repeat purchases, control advertising and promotion (A&P) costs, and improve margins as they grow should command a higher valuation.
While digital infrastructure simplifies reaching consumers, sustaining retention without bloating marketing spend is difficult. Consequently, the report positions profitability and repeat orders as the primary determinants of long-term business value for brands in this booming market.
