2023: Resilience, Innovation, Evolving Trends In India's Booming Beauty, Skincare Market
As we bid farewell to 2023, the beauty and skincare sector reflects on a year of resilience, innovation, and evolving consumer preferences. Insights into the Indian market of the beauty and skincare sector reveal a thriving and dynamic landscape, marked by both international and indigenous brands. With an estimated market value of USD 25.96 billion in 2023, the sector is positioned to reach USD 35.21 billion by 2028, reflecting a notable Compound Annual Growth Rate (CAGR) of 6.286 per cent.
The skincare products market, specifically, witnessed a substantial growth trajectory, surging from USD 6.53 billion in 2022 to an anticipated USD 8.84 billion by 2027 at a CAGR of 6.25 per cent. This robust expansion is indicative of the increasing emphasis on self-care and wellness among Indian consumers.
The beauty and personal care market's trajectory aligns with the exponential growth of the e-commerce industry in India, projected to reach USD 350 billion by 2030. With a burgeoning internet user base and favourable market conditions, the beauty and skincare sector in India showcases immense potential for further innovation, diversification, and market penetration.
The industry's players share insights on the trends that defined the past year and offer a glimpse into what awaits in 2024.
Indian Brands Committing To Efficacy and Goodness
Indian beauty and skincare brands are embracing a commitment to efficacy and goodness, marking a significant trend in the industry. As consumers increasingly seek products that deliver proven results, these brands are prioritising quality, safety, and authenticity. From personalised skincare solutions to natural and ethical choices, the emphasis on efficacy resonates with the discerning Indian consumer. The industry's shift towards efficacy and goodness reflects a deep understanding of consumer preferences and a dedication to offering skincare solutions that not only meet but exceed expectations.
Shankar Prasad, Founder and CEO of Plum, emphasised the industry's resilience in the face of competition. Customers, he noted, are increasingly drawn to products that deliver proven results. The trend of premiumisation, focusing on quality and safety, continues to gain momentum.
Looking forward to 2024, Prasad says that the brand's unwavering focus on efficacy, quality, and spreading goodness aligns with its purpose. The brand will be launching an exclusive app, providing customers with on-the-go access to a variety of products.
Embracing the "Less is More" Beauty Trend
In the dynamic landscape of the beauty and skincare industry, there is a palpable embrace of the "Less is More" trend, signalling a transformative shift in consumer preferences. This movement champions simplicity and authenticity, encouraging individuals to opt for a more natural and effortless approach to beauty. Siddha Jain, CBO of Bombae, notes that in 2023 and beyond, consumers are gravitating towards a coveted "less is more" aesthetic, characterised by a dewy-glass skin or a no-makeup makeup look that accentuates one's features and raw beauty. Jain shares insights into the evolving beauty landscape marked by the "less is more" philosophy. Consumers, she observes, desire a natural, radiant look, leading to a surge in the popularity of Korean skincare products and new-age ingredients like gluta-hya.
Bombae has been quick to respond to these trends with the launch of the Bombae GlamUP Beauty Razor, catering to those seeking an effortless, natural glow. Looking ahead to 2024, Bombae aims to solidify its position in the hair removal category, with ambitious growth plans and a focus on innovative solutions crafted for women by women.
Fragrance Allure
Over the past year, India's premium fragrance market has experienced a significant transformation, reflecting changing consumer tastes and cultural influences. A notable trend is the rising preference for indigenous and artisanal fragrances, celebrating the country's diverse heritage. This surge in demand showcases an appreciation for locally inspired scents made from traditional ingredients, fostering a sense of pride and connection to India's cultural roots.
Furthermore, there's a marked increase in the allure of niche and luxury fragrances among Indian consumers, driven by a quest for exclusivity and sophistication. Brands are innovating by introducing unique scent profiles that cater to various regional preferences, moving beyond the typical floral and spicy notes.
Additionally, the market is witnessing a shift towards sustainability, echoing the nation's growing environmental consciousness. " India's premium fragrance sector has diversified to embrace indigenous craftsmanship, exclusivity, and sustainability, reshaping the industry's landscape significantly," says Pulkit Malhotra, Founder & Head Perfume, Mocemsa.
Navigating Growth With Innovation
In the ever-evolving landscape of the beauty and skincare sector, brands are navigating growth with a strategic emphasis on innovation. Reflecting on the year 2023, Mohit Jain, Co-founder and CEO of Kimirica Lifestyle, acknowledges the industry's notable upswing driven by increased societal emphasis on self-care and overall wellness. Kimirica's resilience and innovation shine through, with a remarkable 30 per cent growth in revenue and a 20 per cent expansion in their customer base. Jain adds that the brand is attuned to shifting consumer preferences, with a focus on clean beauty, cruelty-free, and vegan products. Strengthening online presence and collaborations with influencers are key elements of Kimirica's growth strategy.
Mohit Yadav, Co-Founder of Minimalist, reflects on the dynamic growth experienced by the beauty and skincare sector in 2023. Despite facing challenges in the market, the brand witnessed a substantial increase in consumer engagement, projecting a revenue target of Rs 500 crore for the fiscal year 2023-24. Market insights highlight a rising demand for clinically tested products.
As per Yadav, achievements include a targeted 2X increase in revenue, surpassing the Rs 500 crore mark while maintaining profitability. The company successfully diversified its product range by introducing innovative formulations in new categories such as haircare, bodycare, and eye care. International expansion into markets like the USA, UK, Middle East, and South East Asia has contributed to Minimalist's global presence.
A Year Of Excitement And Ethical Choices
In the dynamic world of beauty and skincare, the year 2023 marked a period of excitement and ethical decision-making for several Indian players. Founder of Orive Organics Nidhi Govil provided insights into the ever-changing landscape of the industry, and emphasised a heightened emphasis on understanding the unique needs of individual skin and a growing inclination towards ethical and natural preferences.
As per Govil, there was a notable upswing in consumer enthusiasm within the beauty and skincare sector, as individuals sought personalised products tailored to their distinct skin types. Significantly, technology played a pivotal role in enabling this personalised approach, simplifying the process for consumers to discover products that align with their specific requirements. The terms 'clean beauty,' 'sustainable skincare,' and 'green beauty' gained prominence, indicating a collective shift towards eco-conscious and ethical consumption.
Looking ahead to 2024, Orive Organics plans to extend its reach into tier 2 cities, with the goal of enhancing accessibility to their natural skincare range through grassroots campaigns, collaborations with local influencers, and digital platforms. This strategic expansion underscores a broader commitment to empower individuals nationwide with skincare choices that are not only safer and superior but also crafted with ethical considerations in mind.
Navigating Challenges And Focusing On Growth
In the dynamic landscape of the Indian beauty and skin care sector, companies often find themselves navigating challenges as they strive for sustained growth. Facing obstacles, whether in the form of market competition, economic fluctuations, or internal operational complexities, becomes an inherent part of the business journey. However, successful enterprises distinguish themselves by viewing challenges not as roadblocks but as opportunities for learning and improvement. By embracing a resilient mindset, these companies can adapt to changing circumstances, identify areas for innovation, and implement strategic solutions.
Sannjana Raghu Amberkar, Co-Founder of Phases, acknowledges significant growth in the beauty and skincare segment in 2023, marked by the entry of new brands, including Phases. The brand's focus on brand awareness resulted in consistent monthly sales increases.
Looking ahead to 2024, Phases plans to launch three new products and initiate a skincare education initiative for tweens and teens. With an eye on sustainability, the brand aims to explore eco-friendly packaging options while intensifying community engagement through interactive events and collaborations.
Amanda Bell, the Global Director of Brand Education and Artistry, reflects on the exciting journey of the sector in 2023. Emphasising the brand's commitment to enduring ethics and messaging, the year marked a pivotal moment where Pixi showcased its strengths through innovative skincare and colour collections. Notable launches included vegan biodegradable capsules of Serum for both morning (Vitamin C Capsulecare) and evening (Retinol Capsulecare), providing the perfect dose and efficacy with every application.
Bell adds that despite facing setbacks, Pixi maintains a positive outlook, emphasizing the brand's agility and commitment to being a positive voice within the beauty community. Looking ahead to 2024, Pixi celebrates its 25th anniversary as a globally recognised, independent, and family-owned brand with unwavering core values. Founder Petra Strand's visionary approach and Pixi's cruelty-free practices, along with the use of plant-based ingredients and cutting-edge technology, position the brand for continued success in the evolving beauty industry.
Vaishnavi Gollapinni, Founder of Core Concept Skincare says that the industry has witnessed swift expansion, driven by both international and indigenous brands.
Trends observed include a growing demand for natural and clean beauty products, personalised skincare solutions leveraging technology, and a shift towards sustainable and eco-friendly options. Gollapinni emphasises that Core Concept Skincare focuses on gender-neutral products and aims to open 1000 outlets in modern trade, spreading roots in tier 2 cities.
Growth Of Unisex Products For A Bigger Market Value
Neeja Shah Goswami, the CEO of Whiskers India, provides valuable market insights highlighting a substantial growth trajectory for India's Beauty & Personal Care Market. Whiskers India stands out by strategically focusing on gender-neutral and unisex products, catering to the evolving standards of beauty that emphasise inclusivity and personalization. By aligning with these contemporary trends, the brand not only addresses a diverse consumer base but also contributes to the growing market demand for products that transcend traditional gender norms. As part of its business expansion strategy, Whiskers India envisions opening 1000 outlets in modern trade, aiming to enhance accessibility and visibility.
Additionally, the brand is poised to venture into tier 2 cities, recognizing the untapped potential in these regions. This strategic approach positions Whiskers India to capitalise on the expanding market, presenting a comprehensive range of unisex products that resonate with the diverse preferences of today's consumers.
A Dynamic Landscape Awaits in 2024
As we reflect on the diverse perspectives from industry leaders, it's clear that the beauty and skincare sector is poised for continued growth and innovation in 2024. From a focus on efficacy and goodness to the rise of sustainable and natural beauty, consumers can anticipate a dynamic landscape that caters to their evolving preferences and values. As brands navigate the changing tide, the emphasis on inclusivity, sustainability, and personalised experiences is set to shape the future of beauty and skincare.
