How personalization, sustainability, innovation are shaping the beauty industry in India

The beauty and personal care market in India is estimated to garner revenues of around $31.56 billion in 2024, witnessing an annual CAGR of nearly 2.76% within 2024-29, as per industry reports. In the year 2023, globally India ranked fourth for garnering the highest revenue from the beauty and personal care market in India as per Statista. The personal care segment is the largest and is predicted to generate a market volume of around $14.31 billion in 2024. The per-person revenue that is generated in India in the beauty and personal care market is around $21.89 in the year 2024 and it is estimated that the contribution of online sales to the Beauty & Personal Care market will be nearly 9% of the overall revenue. Moreover, more consumers are prioritizing organic and traditional beauty products as well as ingredients leading to greater demand for Ayurvedic and natural beauty products in India.

Getting into festive overdrive

Adgully spoke to a cross section of experts in the beauty industry in India who shared some valuable insights on how the beauty brands are geared up for festive season this year, the performance in  H1, growth targets for H2, the trends dominating this industry, the challenges and opportunities in the beauty industry in India, and much more.

While stating that the festive season holds immense importance for The Body Shop, Harmeet Singh, Chief Brand Officer, The Body Shop, Asia South, said that this year, the company is launching an extensive marketing program focused on one of the most cherished aspects of the festive season – gifting.

Product Focus: To this end, The Body Shop is offering a range of thoughtful promotions that include pre-packed gift sets, Create-Your-Own (CYO) gift options, exclusive festive discounts, and enticing gift-with-purchase offers.

Sustainability and Ethical Sourcing: At the heart of The Body Shop’s campaign is a dedication to ethical sourcing. The company is exploring new ways to incorporate fair trade verified recycled plastic into its festive merchandise like makeup and travel pouches, through its partnership with Plastics for Change. The company is planning a donation drive to support waste collectors, a group that it has collaborated with since 2019 to recycle over 2,000 metric tonnes of plastic – equivalent to 100 million plastic bottles.

Digital Integration and Festive Campaign: On the digital front, The Body Shop is focusing on social media, YouTube, Meta, and e-commerce to engage its audience. The Body Shop’s festive video initiative features Indian model and actress Diana Penty. The campaign highlights an easy and effective routine for a natural glow, perfect for the festive season.

Physical Integration: In parallel, The Body Shop is prioritizing in-store heightened experiences for its customers through decorated and visually appealing displays of Gifts.

Deepti Gujar Kulkarni, Founder & CEO, Kass, added here, “This year, Kass is eagerly preparing for the festive season with an exciting new product launch. These innovative additions are meticulously formulated to help our customers achieve a radiant and healthy glow, perfect for upcoming celebrations. Our marketing strategy is designed to spotlight these products and their benefits in a way that resonates with our audience. We are leveraging a blend of influencer partnerships, engaging social media campaigns, and in-store experiences to create buzz and highlight the transformative effects of our new offerings. Through special promotions, interactive content, and personalized consultations, we aim to ensure that every customer can enhance their festive look and feel their best throughout the season. At Kass, we believe that radiant skin is the ultimate accessory for any celebration, and we are excited to be a part of our customers’ festive preparations.”

Meanwhile, Swiss Beauty is gearing up for the festive season with an exciting campaign featuring its brand ambassador, Taapsee Pannu. This season, the brand is focusing on celebrating elevated beauty, a core aspect of Swiss Beauty’s ethos, with a special emphasis on looking and feeling beautiful during this festive period, said Vidushi Goyal, CMO, Swiss Beauty, adding, “The campaign will have a strong digital presence, targeting our audience through immersive storytelling and compelling visuals. In addition to digital, we are also exploring partnerships with OTT platforms to expand our reach and connect with consumers through engaging content. Influencers will play a crucial role in this strategy. We are collaborating with top influencers to create festive looks, highlighting our products and demonstrating how to achieve elevated beauty for any celebration. By leveraging their platforms, we aim to introduce new products and share beauty tips that resonate with our audience, making this festive season truly special.”

Speaking on the festive plans of Mila Beauté, Saahil Nayar MD & Co-Founder, Mila Beauté, shared, “This festive season, we will launch some exciting products for our customers. Our festive campaign this year is specially crafted to reflect the ethos of Mila Beauté. It will showcase how our makeup, created with love, is the perfect addition to the festive makeup vanity.”

“At Salt, we truly embrace the festive season. We are thrilled to be in the business of spreading smiles, especially during this time of celebration. Alongside our scientifically researched, dentist-backed oral care products, we are excited to offer an extended range that includes candles, new oral beauty products, and gift-worthy bundles designed to elevate your oral care routine instantly. These bundles range from basic regimen upgrades and are thoughtfully curated to simplify your oral beauty routine, giving you whiter, brighter smiles to complement your festive attire. This Diwali, consider gifting your loved ones something truly exceptional that allows them to enjoy their sweets while letting Salt Oral Care work its magic. Our bundles also make the perfect corporate gifts, as nothing spreads joy like bright and healthy smiles” said Viraj Kapur, Co-Founder, Salt Oral Care.

Performance in H1 & outlook for H2

Speaking about The Body Shop’s performance in H1, 2024, and the growth targets/ focus areas for H2, Harmeet Singh said, “The first half of 2024 has been a strong growth period for The Body Shop India. We now have over 200 stores across the country and a robust omnichannel presence, reaching vast pin codes. A major highlight was achieving 100% Vegan certification for our entire product range, reaffirming our commitment to ethical, cruelty-free beauty. Looking ahead, our focus remains on expansion and enhancing the customer experience. We are aiming to add 100 new touchpoints by 2025, particularly in high-traffic areas like travel retail and beauty specialty stores. Our Activist Workshop stores will also continue evolving, offering spaces for customers to engage with our sustainability and recycling initiatives. We are also investing in quick commerce to meet the growing demand for faster delivery and bolstering our omnichannel strategy to ensure a seamless shopping experience. Our current reach spans 1,500+ cities through our strong online presence, positioning us well for sustained growth. With a focus on sustainability, activism, and expansion, we are set for an exciting future.”

Deepti Gujar Kulkarni added here, “In the first half of 2024, Kass has experienced remarkable success, with a staggering 400% growth in the last quarter alone. This impressive performance underscores the increasing demand for our innovative skincare solutions and the strong market presence we’re building. As we look ahead to the second half of 2024, our primary focus is two-fold: delivering exceptional solutions to our loyal existing customers and expanding our reach to new audiences. We aim to enhance customer satisfaction by refining our product offerings and ensuring that our solutions continue to meet and exceed their expectations. Additionally, we are strategizing on expanding our market footprint, exploring new channels, and engaging with potential customers who have yet to experience the benefits of our products. Our growth targets for H2 are ambitious yet achievable, centered on sustaining the momentum we’ve gained and building on our recent successes. We are dedicated to innovating and optimizing our product lines while amplifying our marketing efforts to drive further growth and brand loyalty. By focusing on these areas, we are confident in our ability to continue this upward trajectory and make a lasting impact in the skincare industry.”

Vidushi Goyal shared, “Our brand has experienced strong, sustainable growth in H1 2024, outpacing the previous year’s performance. This steady trajectory underscores the increasing trust and connection we’ve built with our consumers, and we’re proud of the progress we have made so far. Additionally, we are expanding our product portfolio to meet the diverse and evolving needs of our growing customer base. With the introduction of two new brands, Swiss Beauty Select and Swiss Beauty Craze, we’re excited to cater to a wider audience, offering a broader range of products that align with their preferences and beauty aspirations. These efforts will help us drive growth while maintaining the high quality and innovation that consumers expect from us. As we move into H2 2024, our focus will be on amplifying brand awareness and continuing to strengthen consumer trust. We aim to engage more deeply with our audience through targeted campaigns and meaningful interactions that showcase the value our brand brings to their lives.”

Saahil Nayar said, “We have received exceptional responses from online and offline channels in H1 2024. For the second half of the year, we are aiming for even higher numbers as this is the 'season' for the beauty industry. We intend to record a 25% growth in revenue from H1. To achieve this, we are focusing on expanding our online and offline presence while driving commerce.”

Elaborating on the performance of H1 for Salt Oral Care and the growth targets for H2, 2024, Viraj Kapur said, “We are primarily focused on growth, particularly in reaching our target audience through our ‘phygital’ strategy – a blend of physical stores and digital marketplaces. For H2, we are aiming for horizontal growth, specifically by expanding our product range. So far this year, we have successfully launched two products, the Souk Mint Mouth Freshener Spray and our fennel-flavored Amalfi Mouth Spritz, both of which have exceeded sales expectations. Moving forward into Q3, we plan to release over 10 additional products. Our ongoing R&D, which takes customer feedback into account, will continue to expand our range of SKUs and cater to our growing consumer base.”

Trends, challenges, and opportunities

Harmeet Singh noted, “The beauty industry in India is undergoing a dynamic transformation, and it’s an incredibly exciting time to be part of it. A major trend is the increasing demand for vegan, cruelty-free, and ethically sourced products. As consumers become more conscious of their environmental footprint, they are gravitating toward brands that share their values. This shift has driven us to achieve a 100% vegan certification, reflecting the growing preference for products that align with ethical standards.”

He further said that transparency and sustainability are also key focus areas. Today’s consumers are interested not only in a product’s performance, but also in its ingredients and origins. Ingredients like Vitamin C and Edelweiss are attracting attention as shoppers seek out natural, sustainably sourced options.

Inclusivity is another significant trend. There is a growing demand for products that address diverse skin tones, hair types, and gender identities. Lastly, experiential trends play a crucial role. The line between physical and digital experiences is blurring, with consumers expecting immersive, personalized shopping experiences both in-store and online. With our omnichannel approach that harmonizes physical retail, quick commerce, and digital marketing, this strategy allows us to connect with our customers on multiple levels, enhancing both visibility and accessibility while staying true to our core values of sustainability and inclusivity.”

Discussing the same, Saahil Nayar said, “India’s beauty industry is rapidly growing and evolving. Trends like full makeup with one product, on-the-go makeup, glass skin makeup, etc., are gaining traction, particularly among young consumers. While these trends driven by local as well as international markets present exciting opportunities, they also pose challenges like creating new products within a short period. However, this also creates a competitive landscape where brands with shorter turnaround times and products made in India have a significant advantage. With consumers prioritizing sustainability, ethical practices, and personalized beauty solutions, brands are focusing on eco-friendly packaging and customized offerings India’s beauty sector is poised for significant growth. Consumer behaviour has shifted towards minimalistic routines and multi-use products, influenced by social media and beauty influencers. The rise of e-commerce has heightened the demand for innovation and quality. As the industry becomes more inclusive and tech-driven, beauty brands must embrace sustainability, offer rapid product innovation, and adapt to evolving preferences to remain competitive in this dynamic market.”

Viraj Kapur added here, “According to our research, the demand for ‘clean’ oral beauty is rising as consumers become more conscious of the harmful and low-quality ingredients often found in traditional oral care products. A shift is underway in oral beauty, much like the transformation we witnessed in skincare and personal care. While a few clean oral care brands currently hold a significant market share, larger mass-market brands are starting to introduce similar offerings. However, consumers need to recognize that these mass-market products, while affordable, may compromise on ingredient quality due to lower price points. Some may also contain preservatives and additives that can be avoided by carefully selecting higher-quality, clean oral beauty products. As the clean oral care segment grows with both new entrants and established brands offering more conscious ranges, Salt, as a dentist-backed brand, is confident in our product innovation and our ability to continually stand out in this evolving market.”

“The Indian beauty sector is evolving rapidly, with consumers becoming highly experimental, presenting both opportunities and challenges. Swiss Beauty thrives in this dynamic environment by constantly innovating and staying relevant to the ever-changing needs of our audience. One key trend is the growing demand for multi-tasking products that offer more than expected, and we are keeping pace with this shift. Looking ahead, the focus on personalization, sustainability, and innovation will shape the industry, and Swiss Beauty is committed to leading the way,” concluded Vidushi Goyal.

Also Read: How can brands effectively maximize their ROI during festive season