In the face of ever-changing economic and social realities, India's industrial and digital sectors have elevated the nation to the status of a world power. According to Euromonitor International, India's personal care industry grew quickly as a result of increased living standards, with a 9.7 percent growth rate expected between 2018 and 2023 (before the health pandemic). Despite this, the worldwide pandemic has had a huge impact on the prosperity of the country's cosmetics business since its establishment. The fast growth of India's digital and industrial sectors has resulted in a surge in cosmetic product demand, which is no longer limited to metro and mini-metro cities but is also strong in rural regions.

Analysing the Indian Beauty Market

However, as a result of the pandemic's consequences, a significant number of customers began to look into items that were ethically sourced, packaged, and produced, resulting in a global shift in patterns. By 2024, the clean beauty industry is expected to be worth $22 billion. Because of digitalisation, the new generation of buyers is more aware of their surroundings and seeks things that reflect their ideals. These "green" businesses represent 5–10% of India's total beauty and skincare market.

Given the growing trend of “skinimalism,” which refers to using only what our skin requires and accepting our skin for all of its flaws and strengths, it's safe to assume that consumers will continue to invest in ethical, organic products based on sustainable practices and take a holistic approach to beauty.

Even as the global beauty industry's post-pandemic complexion shifts, the $11 billion Indian market, according to Statista, is still being revolutionised by entrepreneurs seeking new ways to target India's youthful audience. The Indian beauty sector, which is anticipated to reach $30 billion by 2025, is betting big on multi-brand online stores, fuelled by significant reasons such as the country's expanding smartphone population, internet penetration, and the continuous expansion of India's youthful, ambitious workforce, among others.
Following the epidemic, individuals are resorting to "revenge spending" and the "lipstick effect" to spend money on little pleasures during economic downturns, helping to fuel the growth of the beauty and skincare industry.

Furthermore, digitalisation has a huge influence on the structure of the beauty sector. Connecting businesses with clients, introducing international brands, providing access, and generating new trends among beauty aficionados are just a few examples. This has resulted in higher client expectations while also pivoting with the times to remain new, relevant, and imaginative.

Multiplicity of the Beauty Market

India is a highly diverse physical market in terms of the retail market, so scaling it up is capital and time-intensive. It still faces the risk that it will not reach 'critical mass' as one goes deeper into the population strata.

Well-being is a far broader concept than health or wellness, and it is one that Boddess has embraced since it encompasses a broader universe of human circumstances and relates to the ambitions of a well-rounded existence. Because of the informed mindset and mass effect of younger generations like Gen Z, who are hyper-aware of social and environmental concerns, the future of consumer health and wellness is proactive, conscientious, and pushed towards well-being. There could never be a better moment to be a beauty consumer or brand.

Funding Galore of Indian Brands

Manish Taneja, co-founder and CEO of Purplle.com, a well-funded Nykaa rival in the online beauty ecommerce area, reveals how Myeong-dong market in Seoul has over a thousand merchants providing millions of different Korean cosmetics and skincare items in its crisscrossing lanes. South Korea's beauty sector is worth billions of dollars.

Despite its size, India is nothing near Korea in terms of the beauty market, but the frenzied rate at which the cosmetics and personal care businesses are developing here, fueled by hundreds of new D2C retailers, demonstrates that it is on the rise. In 2021, India's beauty and personal care businesses saw a cash inflow of over $350 million, up from around $100 million in 2020.

In 2021, India's burgeoning BPC (beauty and personal care) industry was valued at $24 billion, and it is predicted to reach $40 billion in the next five years. In a Series C deal last year, the Good Glamm Group raised $100 million in three tranches from investors including Amazon and Wipro. Purplle had garnered $45 million in a Sequoia Capital-backed round, then $75 million from investors including Kedaraa Capital a few months later, before raising another $38 million in a Series D financing.

Honasa Consumer, the parent company of Mamaearth, a baby and skincare products company, obtained an additional $52 million in fundraising earlier this year, increasing its total valuation to $1.2 billion.

Tech & Beauty

However, as we move toward a more technologically sophisticated future, companies that give clients hyper-personalized experiences will be the genuine trendsetters in the beauty sector. The focus of Boddess on AI and AR technology, as well as skin and cosmetics testing tools, exemplifies how our beauty business has evolved. Customised packaging, such as a lipstick with your name etched on it or a personalised moisturiser formula that penetrates deeper into the skin, is a trend to keep an eye on.

Aside from the pandemic causing a technological transformation in the skincare and cosmetics industry, the male market would be one of the post-covid sales swings.Male-oriented cosmetics and grooming products are gaining popularity, with global sales expected to reach $81.2 billion by 2024. This is due, in part, to lockdowns that occurred when men experimented with things in the privacy of their own houses. However, as a consequence of a positive shift in how masculinity is viewed, as well as our collective interest in self-care and the current beauty brand boom, men now have more product alternatives and agendas to interact with.

Businesses should strive to deliver bespoke product solutions that, when implemented efficiently, will revolutionise the beauty and skincare buying experience for their customers through the perfect balance of digitalization and targeted customization. According to current conditions and the path forward, combining augmented reality and virtual reality to bridge the digital and physical worlds is the way of the future. Customers may use such technologies to find answers and assistance while remaining secure in the comfort of their own homes. The technologies, which are powered by consumer data sets, machine learning, and augmented reality, allow businesses to discover aesthetic faults in a diverse variety of clients while also comprehending their psyche. As a consequence, customers will have a more delightful shopping experience.

In Conclusion

When we analyse the consumer landscape, trust in the beauty and wellness business seems to be justified. Shoppers' Stop, India's largest contemporary retail shop chain, has recently opened SS Beauty in Mumbai, a standalone luxury beauty boutique. Nykaa has expanded its physical presence by opening two unique stores, one for premium buyers and the other for a broader audience. Similarly, Myntra, a clothing-focused Internet and online store, has indicated that beauty and personal care would be important priority areas in 2022. Clearly, the beauty bucket is expanding.