PREMIUM BEAUTY AND PERSONAL CARE IN INDIA - ANALYSIS

Country Report | Jul 2023

KEY DATA FINDINGS Market Sizes

Retail value sales rise by 15% in current terms in 2022 to INR58.0 billion Sales of Premium Beauty and Personal Care
Premium deodorants is the best performing category in 2022, with retail value sales Retail Value RSP - INR million - Current - 2008-2027
growing by 28% in current terms to INR1.5 billion
L’Oréal India Pvt Ltd is the leading player in 2022, with a retail value share of 15%
58,096 Forecast
120,000
Retail sales are set to grow at a current value CAGR of 14% (2022 constant value CAGR
of 8%) over the forecast period to INR110 billion 100,000

2022 DEVELOPMENTS 80,000

Changing dynamics and increased global exposure favour premium

60,000
beauty and personal care
India is one of the fastest growing economies in the world, with a large young 40,000
population. Its rising GDP per capita is fuelling the growth of the economy. Real GDP in
India continued to expand in 2022, recording 7% growth, outperforming the average
growth of 4% in Asia Pacific. With rising disposable incomes in the country, consumers 20,000
have shown an inclination to spend more on luxury and premium products. According
to Euromonitor International’s Economies and Consumers data, the disposable incomes 0
of Indians recorded a 10% CAGR over the review period from 2017 to 2022. Increased 2008 2022 2027
global exposure and a willingness to spend more have fuelled the growth of premium
beauty and personal care in India. The premiumisation trend was largely seen within
product categories such as hair care, skin care, colour cosmetics, and fragrances over Sales Performance of Premium Beauty and Personal Care
the review period. % Y-O-Y Retail Value RSP Growth 2008-2027
In addition, the increase of global influence has undeniably fuelled the growth of
premium beauty and personal care in India. The convergence of digital media, social
platforms, and globalisation has connected Indian consumers with the global beauty
15.4% Forecast
30%
industry like never before. With access to international beauty trends, social media
influencers, and product launches, Indian consumers are becoming more aware and
aspirational in their beauty choices. The exposure to global beauty standards and the 20%
allure of prestigious international brands has created demand for premium beauty and
personal care products in India.
10%
Digitalisation and growing popularity of beauty e-tailers promote
accessibility to consumers
0%
According to Euromonitor’s Economies and Consumers data, by 2026, nearly 99% of the
population is expected to have access to a 4G/5G network in India. With growing access
to the internet, more consumers from tier-2 and tier-3 cities are leveraging e- -10%
commerce platforms for their daily beauty necessities. The increased accessibility of
beauty products through online platforms has expanded the reach of brands and
facilitated convenient shopping experiences for consumers. For instance, platforms -20%
2008 2022 2027
such as Nykaa, Myntra Beauty, and Purplle have gained immense popularity, offering
an extensive range of beauty products from both domestic and international brands.
Secondly, digitalisation has empowered consumers with knowledge and information,
enabling them to make more educated choices about their beauty routines. Social
media platforms, beauty blogs, and YouTube tutorials have become valuable sources of
inspiration, product recommendations, and beauty tips. In addition, digitalisation has
opened up avenues for direct communication between brands and consumers. Beauty
brands can now engage with their audience through social media, e-mail newsletters,
and online events. Brands such as Sugar Cosmetics have successfully utilised digital
platforms to engage with their audience and build a loyal community.

Potential for premium beauty and personal care in India attracts

attention from international brands
The growing population, rising GDP per capita, and shifting consumer perceptions in
India have provided a conducive environment for international premium beauty and
personal care brands to venture into the Indian market with their high-end offerings.
With a large young population, especially millennials and gen Z, who are increasingly
conscious of their appearance and willing to invest in quality beauty products, the
demand for premium beauty and personal care products has surged. As of 2022,
according to Euromonitor’s Economies and Consumers data, India was home to 316

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million millennials and 365 million generation Z individuals.
Sales of Premium Beauty and Personal Care by Category
Witnessing the opportunity in the premium segment, international brands are entering Retail Value RSP - INR million - Current - 2022 Growth Performance
and leveraging the wide market potential. Premium beauty brands are positioning
themselves to cater to consumers, especially millennials, who are not shy to spend on Premium Baby and Child-specific ...
-
premium products. In a collaborative venture, Nykaa has joined forces with the
celebrity actress Priyanka Chopra Jonas to introduce Anomaly Haircare, her exclusive Premium Bath and Shower
-
hair care brand, to the Indian market. This partnership aimed to make Anomaly
available across Nykaa.com and Nykaa stores throughout the country in 2022. Hence, Premium Colour Cosmetics
7,426.6
the entry of further renowned global brands in the Indian market not only offers a
wider range of options to consumers, but also indicates the country’s potential for Premium Deodorants
1,543.8
further growth in the premium beauty and personal care segment.
Premium Fragrances
12,636.1
PROSPECTS AND OPPORTUNITIES Premium Hair Care
20,019.4
Millennials and younger consumers will drive demand for premium Premium Skin Care
beauty and personal care 15,596.5
Premium Adult Sun Care
Gen Z and millennials prioritise self-expression and individuality, and are more willing 873.7
to invest in high-quality products that align with their values. As a result, premium 0% 15% 30%
beauty brands that resonate with the aspirations and preferences of millennials and
gen Z are experiencing remarkable success. One such brand is Kama Ayurveda, which is PREMIUM BEAUTY AND PERSONAL 58,096.0 CURRENT % CAGR % CAGR
CARE YEAR % 2017-2022 2022-2027
known for its luxurious formulations rooted in Ayurvedic principles, which have gained GROWTH
immense popularity amongst these demographics. According to Euromonitor’s
Economies and Consumers data, the millennial and gen Z population accounted for 50%
of the total population of the country in 2022. Brands such as The Ordinary have gained
popularity amongst these demographics for their minimalist packaging, transparency, Competitive Landscape
and affordability. Furthermore, Nykaa Luxe, an extension of the popular beauty e-
commerce platform Nykaa, offers a curated selection of high-end beauty brands
catering to the discerning tastes of these population groups. Company Shares of Premium Beauty and Personal Care
% Share (NBO) - Retail Value RSP - 2022
Increasing disposable incomes amongst these population groups allow them to
prioritise quality and invest in premium beauty products. As urbanisation continues to L'Oréal India Pvt Ltd 15.0%
rise in the forecast period, these generations will have access to better employment Baccarose Perfumes & Bea... 11.6%
opportunities and higher salaries, enabling them to allocate a significant proportion of
their income towards personal care and grooming. With a growing emphasis on self- Elca Cosmetics Pvt Ltd 9.4%
care and appearance, millennials and gen Z are expected to be more inclined to seek Tarz Distribution India ... 6.5%
out premium beauty brands that offer superior formulations and luxurious
experiences. Wella India Haircosmetic... 3.6%
Jyothy Labs Ltd 3.0%
Hair care and skin care will continue to drive growth in premium beauty Amway India Enterprises ... 2.4%
and personal care
Beauty Concepts Pvt Ltd 2.3%
Premium hair care and skin care are the largest categories within premium beauty and Shiseido Beauty Co Ltd 1.5%
personal care in India, and are poised to fuel the actual growth of the segment in the
country. As consumers become increasingly conscious about their hair and skin health, Clarins SA 0.7%
they will be more willing to invest in high-quality products that offer superior results Habibs Cosmetic Pvt Ltd 0.3%
and address specific concerns.
Brushman India Ltd 0.2%
In premium hair care, new developments are anticipated to emerge, such as products
Abbott India Ltd 0.1%
that address specific concerns, including scalp health, hair rejuvenation, and protection
against environmental damage. Furthermore, personalised hair care solutions tailored Others 43.2%
to individual needs may become more prevalent in the forecast period, with brands
offering customised products based on hair type, texture, and specific concerns.
Similarly, skin care is expected to see significant growth in the premium segment in the
forecast period. Indian consumers are becoming more aware of the importance of skin
care routines and are seeking premium products that provide effective solutions for
various skin concerns. This includes anti-ageing products, brightening serums,
hydrating creams, and natural and organic skin care options. Brands such as Clinique,
Estée Lauder, and Innisfree have gained popularity in India by offering premium skin
care products that combine scientifically proven ingredients with innovative
formulations.

Natural ingredients-based products beyond skin care to be prominent

in premium beauty and personal care
In India, Ayurvedic product offerings or those based on natural offerings are generally
positioned as premium in the industry. As consumers become more conscious of the
ingredients they apply to their skin and hair, there is a growing preference for
natural/herbal ingredient-based products. This shift towards natural beauty is expected
to drive demand for premium brands that offer clean, sustainable, and naturally
sourced formulations. Brands such as Forest Essentials have already gained prominence
by offering premium skin care products that utilise natural ingredients such as saffron,
turmeric, and rosewater.
The use of natural ingredients is anticipated to extend beyond skin care and hair care to
other premium beauty and personal care categories. Colour cosmetics brands such as
Ruby's Organics offer premium products made from natural and organic ingredients. In
the forecast period, more brands are likely to emerge which offer clean and natural
options in premium colour cosmetics, including foundations, lipsticks, and eyeshadows
that are free from synthetic additives and preservatives. Fragrances is also

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experiencing the development of products based on natural ingredients in the Brand Shares of Premium Beauty and Personal Care
premium segment. Brands such as Forest Essentials and Kama Ayurveda have % Share (LBN) - Retail Value RSP - 2022
introduced premium fragrances that incorporate natural essential oils and botanical
extracts. L'Oréal Professionnel 10.3%
Mac 5.7%
Schwarzkopf Professional 3.0%
Davidoff 2.7%
Calvin Klein 2.2%
Bvlgari 1.9%
Burberry 1.6%
Shiseido 1.5%
Clinique 1.3%
Artistry 1.3%
Estée Lauder 1.3%
Koleston Perfect 1.2%
Satinique 1.1%
Bobbi Brown 1.1%
Vichy 0.8%
Clarins 0.7%
Versace 0.6%
Hugo Boss 0.6%
Ferrari 0.5%
Others 60.5%

5-Year Trend
Increasing share Decreasing share No change

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