May, 2018     

Online Beauty Market Updates-May’18

BPC market in India stands at ~ USD 14.6bn, expected to grow to USD 22.5bn by 2022 at a CAGR of 9%

The Indian beauty product category (BPC) is currently a $14.6 bn market and we expected it to grow to $22.5 bn by 2022. Specialised categories like makeup cosmetics skincare etc. are expected to outpace the market in coming years, due to higher disposable income, social media influence, increased adoption of products and latent demand fulfillment. Generic categories like soap, shampoos etc. on the other hand will grow slowly & steadily and brands with functional benefits & value-for-money products will dominate.

Offers & discounts is the top reason for buying beauty products online followed by wide selection and trust

The key reasons for which consumers buy beauty products online are offers & discounts, wide selection, trust on the seller and web/app experience. Consumers in metros and T1 cities want a good web/app experience and availability of the top brands they seek. While those in T2+ cities give more importance to the trust on the seller and customer support.

65% of the customers know which product and which brand to buy while purchasing the beauty and personal care products

About 2/3rd of the consumers of beauty products know which brand and which product they want to buy. The online beauty players who able to bring in international/national brands and get them delivered to such consumers are hence seeing rapid adoption. The online beauty market grew by 70% in the last one year and we expect it to continue the growth trajectory.

Online Fashion is largely dominated by apparel and footwear but online beauty products is growing fast

The online fashion in India is under penetrated with the online penetration of the sub-categories being less than 5%. Online beauty products is the fastest growing sub-category with more than 70% annual growth rate. It is the only category where the verticals are out performing the horizontals. With the share of verticals being close to 55% this is one category where the verticals have proven their value to the consumers.

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