15 Sep 2023
Indian beauty and personal care (BPC) market is aimed to reach $30 billion by 2027 of which 5% is from the global BPC market, as per a report by Redseer Strategy Consultants in association with Peak XV.
BPC spends $14 as per capita for India while US leads at $313 followed by China at $38. In India, the online medium is a significant portal and is expected to reach $10 billion by 2027, accounting for about 33% of the market share. The report also said that the Indian BPC market is expanding twice as fast as the FMCG-led brands, which showcases the importance of specialized, BPC-focused players. With the Indian BPC maturing, the report expects to have multiple hundred-million-dollar pure-play BPC brands.
Brands such as, Nykaa, Honasa and others are introducing innovative products. In 2022, the average gross margin for major pure-play BPC companies globally was 72% as compared to 44% of FMCG-led BPC companies.
The report stated that by 2027 there will be a huge rise in the industry globally, with a total market size of $660 billion with a total market capitalization of $2.2-2.7 trillion. According to Rohan Agarwal, Partner, Redseer Strategy Consultants, globally consumers are ready to pay a premium for customized products that are safe and effective and as per their skin or body type. They are ready to shop through the online and offline medium.