Insights from India's Booming Personal Care Market

At Corporate Finance International , we have a strong global presence in personal care products, thanks to our offices in particular in US, Brazil, France, Italy, Spain, Tokyo or Shanghai. We recently attended HPCI India , the Home and Personal Care Ingredients Exhibition and Conference India. This event provided valuable insights into the rapidly growing Indian personal care market and emerging trends that are shaping the industry.

India's personal care market has been experiencing tremendous growth, driven by rising disposable incomes, increasing urbanization, and evolving consumer preferences, driven by a growing middle class and an increasing emphasis on wellness and sustainability.  With our established footprint in key personal care hubs like the US, Brazil, Europe, and Asia, we were eager to better understand the dynamics of this important market.

As of 2024, the market is valued between $20 billion and $28 billion, with projections indicating a compound annual growth rate (CAGR) of 5.6% to 11.5% over the next decade, potentially reaching $34 billion to $47 billion by 2028–20331.This growth is underpinned by India's status as the world's fastest-expanding beauty market, outpacing China, the U.S, and South Korea. The sector's dynamism reflects transformative trends such as digitalization, premiumization, and a strong shift toward natural and organic products, all while navigating challenges like regulatory complexities and rural market penetration.

At the conference, Raj Shroff & Miti S Jhaveri have the opportunity to meet with a wide range of companies, from ingredient suppliers to finished product manufacturers. These conversations revealed several key trends:

• Shift Towards Natural and Sustainable Ingredients: Indian consumers are increasingly demanding personal care products made with natural, organic, and environmentally-friendly ingredients. Brands are responding by reformulating their offerings to meet this growing preference.
• Expansion of Premium and Specialized Products: Along with mass-market staples, the Indian personal care market is seeing a rise in premium, specialized, and innovative products catered to specific consumer needs and preferences.
• Increasing Emphasis on Personalization: Leveraging data and technology, companies are tailoring their products and services to provide more personalized solutions for Indian consumers.

From what we learn:

• Skincare is the largest segment (35–40% share), fueled by pollution concerns and anti-aging demand. Sunscreen sales surged by 22% YoY, while serums with vitamin C and retinol grew by 30%.
• Hair Care is contributing 25% of revenue, with a 15% CAGR for premium shampoos and conditioners. Dandruff treatments and hairfall solutions dominate, leveraging ingredients like biotin and argan oil.
• Color Cosmetics is recovering at 18% CAGR, driven by hybrid work culture. Transfer-proof lipsticks and eyeshadows  are top sellers.
• Men’s Grooming is the fastest-growing niche at 20% CAGR, with beard care and anti-acne products leading. The men’s skincare market crossed $600 million in 2024 !

Regarding Price Point and Distribution Channels

• Mass Market (≤$15): Holds 65% share but is shrinking as consumers trade up.
• Premium (>$15): Growing at 14% CAGR, driven by imported brands and D2C innovations.
• Online Sales: Projected to equal organized offline retail (33% share each) by 2028, displacing unorganized stores (declining from 55% to 35%)

About the Competitive Landscape and Innovations:

Domestic vs. Global Players - Hindustan Unilever leads with a 22% market share through brands like LAKMÉ INSPIRED HAIRCARE and @Pond's. Nykaa, with its 8% D2C foothold, rivals global entrants like SEPHORA and Shiseido , which opened flagship stores in Mumbai. Startups like Mamaearth and SUGAR Cosmetics are disrupting traditional segments with toxin-free formulations and Instagram-friendly packaging.

Technological Advancements - AI-driven skin analyzers and AR virtual try-ons are becoming industry standards, with 60% of D2C brands offering personalized regimens. Blockchain for ingredient traceability is gaining traction, with 25% of organic brands adopting it by 2024

As an investment bank with deep expertise in the personal care sector, we are excited to continue supporting companies navigate the evolving Indian market or who would like to enter in the most dynamic market worldwide. Our global presence and cross-border capabilities allow us to facilitate connections, provide strategic insights, and unlock new opportunities for our clients.

We believe at Corporate Finance International that India's home and personal care industry holds significant promise for the future. We are excited to continue engaging with industry stakeholders, exploring investment opportunities, and contributing to the sector's continued growth and success. India’s beauty and personal care market represents a microcosm of the nation’s economic ascent and cultural evolution, it’s really fascinating.

If you have any project in Personal Care involving India, feel free to contact us !

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