India’s Beauty and Personal Care Market Projected to Reach $42 Billion by FY31, Report Shows

India's Beauty and Personal Care (BPC) market is projected to nearly double from $23 billion in FY26 to $42 billion by FY31, according to a recent report by Aditya Birla Capital. This expansion positions India to become the fourth-largest BPC market globally by 2030.

The domestic sector is expected to expand at a compound annual growth rate of approximately 12 percent. The report notes that significant room for expansion remains, as active BPC shoppers currently account for only about 15 percent of India's broader internet user base. The active shopper base is forecasted to increase from 140 million in FY26 to 200 million by FY31.

A notable demographic shift accompanies this projection. Gen Z and Gen Alpha consumers are expected to account for nearly 50 percent of total sector spending by FY31, compared to roughly 32 percent in FY24. This growth trajectory is further supported by an expanding consumer base, broader personal grooming routines, and continuous market share gains by organised retail formats.

The report highlights that consumer purchasing decisions are increasingly made before reaching the checkout page or store. Reviews, creators, product claims, ingredients, and efficacy now play a central role in product discovery.

The retail structure operates as a multi-channel ecosystem where buyers select specific avenues based on their transaction type. Online market salience is forecast to rise from 25 percent in FY26 to 34 percent by FY31, while organised offline retail is expected to grow its share from 27 percent to 32 percent over the same timeframe. Within this structure, quick commerce is positioned to handle replenishment orders, while specialised vertical platforms remain critical for product discovery, assisted purchases, and premium merchandise.

Digital advertising, marketplaces, and contract manufacturing have collectively simplified the process of launching new beauty brands. The number of new-age brands generating annual revenues above ₹1 billion is anticipated to grow from between 70 and 80 in FY26 to more than 150 by FY31.

Despite the ease of launching and reaching modern consumers through digital infrastructure, industry dynamics indicate that scaling past higher benchmarks presents operational hurdles. The report observes that only a small number of brands are expected to build sufficient repeat purchases and distribution to cross ₹10 billion in revenue. Furthermore, revenue scale alone will not suffice, as companies must control advertising and promotion expenses and improve margins as they grow to command higher valuations.

"The projected growth of India's beauty and personal care market highlights a massive opportunity for new-age brands and digital platforms. However, founders must note that while launching a brand and acquiring early customers has become easier through digital infrastructure, long-term success will depend on unit economics and customer retention rather than top-line revenue alone. Managing advertising costs and building genuine brand loyalty will be the key differentiators for scaling past the ₹10 billion revenue mark." — Dr. Shishir Gupta, Founder & CEO, StartupLanes