The Indian beauty and wellness industry has undergone a significant transformation of late. Driven by increase in disposable incomes, awareness and access to products, this change has been witnessed predominantly in the metros. Covid is another factor that contributed immensely towards the growth in this sector. Further, the ‘work from home’ culture gave people time to care about themselves.
This trend resulted in growing need towards self-care and skin care, which also helped the industry grow drastically in the last two years in India. Increase of women workforce in the tier 1 and tier 2 cities paved way for raising purchasing power. This trend is all set to increase in the near future.
Among the upcoming trends expected in the beauty and wellness industry in 2023 is that products with natural or chemical–free ingredients will be in focus. More and more consumers are embracing products that promote zero side-effects. Therefore, brands and their manufacturers are focused on creating products which are natural, environmentally sustainable and use lesser synthetics.
On the other hand, consumers’ interest and awareness in sustainable products is on the rise and this includes its ingredients and packaging. This trend is driving brands to innovate so as to cater to this increasingly well-informed audience.
E-commerce is playing a significant role in the growth story, boosted dramatically during the Covid lockdowns. The biggest advantage that e-commerce gives is the accessibility to markets from any part of the country, or the world.
In 2017, the per capita spending on cosmetics and personal care items was reportedly around INR 450. This figure is predicted to nearly double between 2019 and 2024. The Indian beauty and wellness industry was estimated according to IANS to be worth INR 901.07 billion in 2018 and is anticipated to develop at a compound annual growth rate (CAGR) of 18.40 percent between 2019 and 2024 to reach INR 2,463.49 billion. In addition, the Indian beauty retail sector witnessed several new product launches in the year 2022. This trend is set to pick up pace with new international wellness and beauty launches expected this year.
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