The Future of India's Beauty and Personal Care Market

The beauty and personal care market has been exciting, not just because it’s massive.As someone who has suffered from skin problems and relied on over-the-counterproducts and prescriptions, I spent large sums on items that didn’t work, much likethose around me who purchased products they didn’t use or bought them due to peerpressure or their favorite influencer. In the early 2000s, I remember Soframycin creambeing a one-stop solution for all skin problems. My mother’s and sister’s cabinet wasfull of cosmetic products, and now I have bottles of SPF, moisturizers, and toners athome, all promising smooth and spotless skin. And who can forget the era of Fair andLovely cream? Consumers and market products have evolved significantly.

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India's beauty and personal care industry is undergoing a profound transformation. Withmarket size expected to rise from $26.3 billion in 2022 to $38 billion by 2028, this growthis being fueled not just by rising incomes and digital adoption, but by a more profoundshift in consumer behavior: a demand for science-backed, personalized, and techintegrated skincare solutions. As brands scale rapidly, the sector finds itself at aninflection point. The long-term winners will be those that combine clinical efficacy withinnovative technology and embrace a hybrid B2B and B2C model anchored in trust,personalization, and outcomes.

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The COVID-19 pandemic fundamentally altered how Indian consumers perceive beauty.Self-care became a daily ritual, not a luxury. Skin health rose to the forefront, with theskincare market alone reaching $2.93 billion in 2023 and projected to grow at a 14.6%CAGR through 2034. Consumers emerged more aware, skeptical of marketing hype, andincreasingly interested in ingredients, efficacy, and personalization. Platformsresponded with aggressive omnichannel expansion, while a new wave of direct-toconsumer (D2C) brands redefined the consumer-brand relationship with transparent,ingredient-focused narratives. Technology also surged—AI skin advisors, AR try-ons,and virtual consultations became commonplace. Yet, beneath the optimism lies a morecomplex reality.

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While many players are thriving, several models expose structural vulnerabilities:

1. Rapid overextension into too many categories can dilute brand identity andconsumer trust.
2. Heavy reliance on influencer marketing and storytelling, without tangible efficacy,often leads to low retention.
3. Limited investment in diagnostics, AI infrastructure, or dermatologist integrationrestricts personalization to superficial levels.
4. Commoditized formulations, lacking clinical validation or IP defensibility, makebrands replaceable in a crowded market.

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The case of Mamaearth is especially instructive. Initially positioned as a toxin-free,nature-first brand catering to baby and family care, it expanded aggressively acrosscategories—from skincare to makeup, wellness to grooming. In doing so, it built widedistribution but lost its niche appeal. High marketing spends, a rising CAC, and limitedbrand loyalty have weighed on profitability. Its IPO filings reflected strong toplinegrowth, but thin margins and a dependence on performance marketing to drive sales.Without a product or tech moat, the brand became vulnerable to ingredient-led startupsand legacy FMCG giants.

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These weaknesses point to a larger issue: the current ecosystem is built for discoveryand commerce, not outcomes. But the consumer is evolving—seeking results,transparency, and credibility. There is a growing fatigue around influencer-drivenstorytelling without substance, creating space for brands that invest in science,diagnostics, and skin intelligence.

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To thrive, brands must tailor strategies to India’s unique landscape:

1. Tiered urbanization: Tier 2 and 3 cities are growing rapidly but require localizedcontent, vernacular interfaces, and affordable efficacy.
2. Diverse skin/hair profiles: India’s regional variations demand more than skintone matching; humidity, water quality, and pollution influence skin behavior.
3. Trust hierarchy: Indian consumers trust doctors more than influencers. Clinicalvalidation, not just storytelling, is essential.
4. Ayurveda vs. science: The winning formula clinically validates traditionalformulations, not just marketing them as “natural.”
5. Value-driven culture: Consumers are price-sensitive but demand quality. MiniSKUs, subscription models, and outcome guarantees are vital.
6. Being Omnichannel is mandatory: Offline and online must work in tandem—tech-enabled stores, skin kiosks, and data-linked apps drive omnichannelsuccess.

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Technology and AI: The Next Moat for the BPC market?

Tech-led personalization is no longer a nice-to-have; it’s essential. But it must evolve:

1. From gimmicks to outcomes: AR try-ons and quizzes are entry points. The realopportunity lies in skin diagnostics, progress tracking, and scientificallyevidence-based recommendations.
2. Own proprietary data: Startups must build datasets specific to Indian skin types,climates, and lifestyles to train localized AI models.
3. Clinical-grade AI: Tools that predict skin conditions, recommend dermaceuticalroutines, and integrate with dermatologist networks.
4. Conversational & vernacular AI: Chatbots and voice-led consultations in regionallanguages will unlock adoption in non-metros.
5. AI-as-a-Service (B2B): Salons, clinics, and retailers need tech integrations fordiagnosis and product mapping.
6. Rising interest in Skincare and realizing that the sales cycle for skincare is longerthan for cosmetics is due to the realization of efficiency.

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The companies that stand out in the next 5–10 years will do so not by having the bestmarketing, but by combining three core competencies:

1. Diagnostic Depth: Understanding skin holistically using tech and longitudinal data.
2. Dermaceutical Expertise: Science-backed, effective products tied to measurableoutcomes.
3. Distribution Duality: A hybrid B2B/B2C model that ensures clinical trust andconsumer loyalty.

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Recent investments reflect a strong belief in science-driven beauty:

1. Minimalist got acquired by Hindustan Unilever Limited (HUL) for ₹2,955 crore.
2. RAS raised $5M led by Unilever Ventures and Amazon’s Smbhav Fund.
3. Deconstruct raised ₹65 Cr ($7.5M) from BOLD (L'Oréal), V3 Ventures, and DSGConsumer Partners.

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Most beauty D2C brands will lean toward M&A due to rising customer acquisition costs,distribution costs, and thin margins. IPOs may be reserved for tech-first beautyplatforms with defensible IP and global scalability.

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Beauty is expanding into wellness. India's supplements market is projected to be over$2.85 billion in 2025 and projected to grow at a 7.16 % CAGR through 2029. Consumersincreasingly want 360° solutions that combine skincare, nutraceuticals, diagnostics,and lifestyle tracking. This is because of the rising education of consumers and thelearning about basic skin health and personal care, it’s not only what you put on top, butalso external factors like genetics, lifestyle (Sleeping, exercise, food intake, waterintake). What will be interesting to see is if the Indian consumer is ready to adopt thenext level of personalization, which is in-house tests to be sent to labs to understandthe different correlations between genetics and skin health, as well as personalized treatments/solutions. I see a future for deep-tech startups in the beauty and personalcare space, which will lead to technology integration for businesses.

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The next generation of beauty winners will:

1. Integrate skincare, supplements, and diagnostics.
2. Build loyalty through outcomes, not influencers.
3. Serve both individuals and clinics with smart, adaptive systems.

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Startups like Clinikally, which combine dermatologist access with personalized skinroutines, could represent the blueprint for this future. By linking AI, clinical intelligence,and user engagement, they move beyond products to platforms.

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What will the India 2030 BPC market look like?

1. 60% + of skincare purchases in urban India will involve diagnostics.
2. The line between beauty and health will blur.
3. Men’s wellness will be mainstream.
4. The most valuable brands will own habits, not just SKUs.

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India’s beauty future is no longer about what looks good but what works.Personalization, clinical trust, and whole-body wellness will define the next chapter. Thefuture belongs to brands that don’t just promise glow, but deliver longevity.