Hindustan Unilever Limited (HUL) acquired Minimalist, a popular D2C beauty brand. This showcases increasing consumer demand in the beauty sector and the boom in India’s beauty and personal care (BPC)industry which is poised to touch USD 30 billion by 2027.
According to a research firm Kantar study, liquid beauty products were performing well, with the facewash penetration at 30% and hand wash at 18%. K Ramakrishnan, managing director (South Asia) at Worldpanel Division, Kantar added that the body wash penetration was still low, but would improve basic marketing strategies by brands. According to Virat Khanna, Marketing Head for Skin care at Dabur India Limited, the rise in liquid beauty segment shows consumer preference for convenience, premium experience, and hygiene.
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As per V S Kannan Sitaram, Co-founder and Partner at Venture Capital Firm Fireside Ventures, the BPC market is expanding but within this segment, the beauty space is doing better as people are spending more on beauty. BPC consumers are looking for result-oriented products that resolve specific issues and skincare has become a big market of major brands like Minimalist, The Derma Co, and Dot & Key. Also, major investments are being made by Fireside Ventures in brands such as Moxie Beauty, a hair brand and Pilgrim, a vegan beauty brand.
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Pilgrim Co-founder Anurag Kedia added that consumers are now spending more on innovative D2C brands that offer premium products rather than on large FMCG companies, which has resulted in an increase in revenue for such brands. Many new-age brands have capped a revenue of INR 300 to INR 500 crore per year. Even Nikita Khanna, founder of Moxie Beauty feels that consumers are spending more on innovative products and the younger generation now uses a lot more products as part of their daily routine. Such spending will increase for brands that offer promising products.
