The Indian Beauty and Personal Care (BPC) industry will expand the fastest with a 10 per cent growth rate projected between 2022-2027 and reach $30 billion in size.
According to a Redseer and Peak XV report, Indonesia will have a growth rate of 8 per cent; while China will have a projected growth rate of 7 per cent. India will account for 5 per cent of the global BPC industry growth.
“Beauty and Personal Care industry is set to experience a meteoric rise, with projections indicating a total market size of $660 billion corresponding to a total market capitalisation of $2.2-2.7 trillion by 2027. The BPC market has been on a resilient path in the face of global disruptions brought about by the 2020-21 lockdowns,” mentions the report.
Customised products
Brands focused solely on BPC (pure-play BPC brands) have disrupted the market by targeting specific use cases, leading to higher growth rates, gross margins, and profitability compared to FMCG-led BPC players. The average revenue growth of the largest pure-play BPC players was five times of the largest FMCG-led BPC players (2017-22).
“Globally, there’s a growing need among consumers for products ‘made for them’, tailored to individual skin or body types. They are increasingly willing to pay premiums for effective and safe solutions, leading to rapid growth in the masstige and premium categories. While consumers use the internet to research products, they are willing to shop across both online and offline channels.”, said Rohan Agarwal, Partner, Redseer Strategy Consultants.
The online channel for the BPC industry will become a $10-billion market by 2027 accounting for 33 per cent of the market.
Further, according to the report, the Indian pure-play BPC players combined revenue is growing at a rate twice as fast as that of the FMCG-led BPC brands, reinforcing the significance of specialised, pure-play BPC brands globally wherein average revenue growth (2017-22) for major pure-play BPC players was 5x of FMCG-led BPC players (10 per cent vs 2 per cent ).
Consumer behaviour shift -
Indian consumers are willing to pay a premium for Beauty and Personal Care products depicting a shift in trend.
“Consumers are now open to paying a premium for the products specialised and targeted for them. Indian consumers are more open to engaging and learning about products,” added Rohan Agarwal of RedSeer.