The Indian Beauty & Personal Care (BPC) market is projected to grow to $30 billion by 2027 as in opposition to $19 billion in 2022 thus making up about 5% of the worldwide alternative, in accordance to a report by Redseer Strategy Consultants in Collaboration with Peak XV.
As per this report, the BPC business is ready to expertise a meteoric rise, with projections indicating a complete market measurement of $660 billion corresponding to a complete market capitalisation of $2.2-2.7 trillion by 2027.
“The growth prospects of the Indian BPC industry are further strengthened in light of how underpenetrated the Indian BPC market is,” as per the report.
On per capita BPC spends, whereas the U.S. leads at $313, and China at $38, India lags considerably at simply $14.
Online is a big channel for BPC in India because it projected to develop into a $10 billion market by 2027, accounting for roughly 33% of the market then, the report mentions.
Similar to the worldwide market, pure-play BPC manufacturers are main the disruption in India.
The report revealed that the Indian BPC market is rising at a price twice as quick as FMCG-led manufacturers, signaling the importance of specialised, BPC-focused gamers.
As the Indian BPC market matures, the report anticipates the emergence of a number of hundred-million-dollar pure-play BPC manufacturers.
“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.”, mentioned Rohan Agarwal, Partner, Redseer Strategy Consultants in a briefing.
“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. Average revenue growth of the largest pure-play BPC players was 5x of the largest FMCG-led BPC players (2017-22),” he mentioned.
The report reveals that India was a shining star with the very best BPC development price (CAGR of 10% 2022-27) vs. comparable nations (the subsequent finest is Indonesia at 8% and China at 7%).
The BPC panorama’s transformation has additionally birthed a slew of revolutionary manufacturers like L’Oréal, Nykaa, Honasa, and Pure Play Skin Sciences with area of interest choices, it mentioned.
These gamers, wholly devoted to BPC, are extra agile in responding to evolving shopper wants, positioning themselves as leaders on this dynamic market.
“From acne management to anti-ageing solutions, specialised use cases are where we are seeing a lot of the action. Brands are spending a significant portion of their resources and organisation bandwidth on new product development, R&D, and customer insights to drive more efficacious products to a targeted audience,” mentioned Sakshi Chopra, MD, Peak XV in an announcement.
“The pure-play BPC players are performing well in terms of growth and margins, therefore, are valued better. In 2022, the average gross margin for major pure-play BPC companies globally was significantly higher (72%) than that of FMCG-led BPC companies (44%),” she mentioned.
