Skincare market in India 2024 - 2028

Skincare market in India 2024 - 2028

Market Insights:

The skincare market in India experiences growth driven by economic factors, cultural shifts, product innovation, and evolving consumer attitudes towards personal care. Influenced significantly by media, advertising, and social media, beauty influencers and celebrities shape consumer preferences in the beauty and skincare industry. The rise of e-commerce platforms enhances accessibility, convenience, and competitive pricing, contributing to market expansion. However, fierce competition, potentially leading to price wars and reduced profit margins, poses challenges. Shifting consumer preferences, such as embracing minimalism or preferring natural and organic products, impact traditional skincare demand. Governments may implement initiatives to boost skincare and beauty product exports, fostering international trade and economic growth. In terms of revenue, the skin care market in India was valued at INR 794.42 Bn in 2023. It is expected to reach INR 1,181.45 Bn by 2028, expanding at a compound annual growth rate (CAGR) of ~7.89% during the 2024 – 2028 period.

Segmentation Insights:

The global aging population has generated a market demand for products targeting fine lines, wrinkles, and other signs of aging. With a heightened focus on appearance and well-being, consumers are increasingly willing to invest in high-quality beauty and skincare items. Rapid urbanization has brought lifestyle changes, with more individuals adopting Western beauty standards and incorporating various body care products into their daily regimens. Evolving cultural attitudes towards self-care and grooming have fostered greater acceptance and adoption of body care routines. Informed and knowledgeable consumers seek skincare products that are gentle, toxin-free, and crafted with organic and natural ingredients, emphasizing safety in their choices. The demand for sunscreen and other sun-protection products in India has significantly risen due to increased awareness of the adverse effects of UV rays on the skin. The preference for organic and herbal products extends to infants, gaining popularity among parents who prioritize safe and natural skincare for their babies, leading to a surge in demand for baby skincare items.

Market Influencers:

Market drivers:

The rise in multi-functional skincare aligns with consumers' desire for convenient solutions, emphasizing streamlined regimens and varied benefits. Demand is high for skincare products with anti-aging, moisturizing, and sun protection properties. To meet this demand, brands are introducing compact sizes of their skincare products, ensuring convenient use while on the move. The market is now filled with options featuring compact packaging or sachets. The introduction of these smaller-sized skincare products is especially noteworthy in smaller cities and rural areas, addressing potential limitations in accessibility to such offerings. Products addressing signs of aging, such as anti-wrinkle creams, face creams, serums, and eye creams, continue to enjoy widespread popularity. The growing impact of pollution and exposure to hard water has further heightened the demand for these skincare items. Increased awareness of pollution-induced collagen depletion and its role in causing wrinkles has led to a greater understanding of pollution's effects on the skin.

Market Challenges:

Strict regulatory standards oversee the cosmetics industry. Mishandling products beyond their expiration date can have serious consequences for the brand, ranging from product loss before leaving the warehouse to jeopardizing revenue and valuable storage space. Some customers may be reluctant to purchase high-end skincare products at premium prices, presenting a challenge for companies targeting this niche market. To tackle pricing concerns, beauty companies should emphasize product multifunctionality and affordability. Strategies may involve simplifying product variations, highlighting popular items, and introducing exclusive partnerships for a limited time. Seasonal variations, including weather patterns, holiday seasons, and evolving consumer tastes, can disrupt a business's income flow, leading to financial uncertainty and challenges for sustained growth.