India's beauty, personal care market to reach $42B by FY31
What's the story
India's Beauty and Personal Care (BPC) market is set to witness a massive growth from $23 billion in FY26 to $42 billion by FY31. This will make India the fourth-largest BPC market in the world by 2030, according to a report by Aditya Birla Capital. The domestic BPC sector is expected to grow at a compound annual growth rate (CAGR) of around 12%.
Market dynamics
New shopper segments and demographics
The report highlights a huge potential for growth, as active BPC shoppers currently make up only about 15% of India's total internet user base.
This shopper base is likely to grow from 140 million in FY26 to 200 million by FY30E.
A major demographic shift will also accompany this growth, with Gen Z and Gen Alpha consumers expected to account for nearly half of all sector spending by FY31.
Retail growth
Evolving retail landscape
The retail sector will continue to be a multi-channel ecosystem where customers choose their preferred channels based on the nature of their purchase.
The report predicts online market share will grow from 25% in FY26 to 34% by FY31, while organized offline retail's share will increase from 27% to 32% by FY31.
Under this model, quick commerce is likely to fulfill replenishment orders, while niche vertical platforms remain crucial for product discovery and premium purchases.
Brand growth
Challenges in scaling up new-age brands
The report also notes that digital advertising, marketplaces, and contract manufacturing have simplified the process of launching a beauty brand.
The number of new-age brands with annual revenues above ₹1 billion is expected to grow from 70-80 in FY26 to over 150 by FY31.
However, industry dynamics suggest that scaling beyond these higher benchmarks can be operationally challenging.