Summary of this article
Gen Z and Gen Alpha could drive half beauty spending.
India’s BPC market could nearly double to $42 billion.
Online beauty sales may reach 34 per cent of market.
Gen Z and Gen Alpha are expected to account for around 50 per cent of India’s beauty and personal care (BPC) spending by FY31, up from around 32 per cent in FY24, according to an Aditya Birla Money research report. The shift comes as younger consumers form a larger part of the market and discover products through digital platforms.
The report, titled Beauty & Personal Care: More Brands, Fewer Winners, has estimated that India’s BPC market will grow from USD 23 billion in FY26 to USD 42 billion by FY31, translating into a growth rate of more than 12 per cent a year.
Younger Consumers Are Changing Beauty Discovery
The way consumers find beauty products is also changing. Search, social media content, creators, product reviews and information about ingredients now play a larger role in purchase decisions.
The report estimates that India had around 140 million BPC shoppers in FY26. This was only about 15 per cent of the country’s internet users, leaving scope for more people to enter the category.
The BPC shopper base is projected to reach around 200 million by FY30, while India’s internet user base is expected to reach about 1.1 billion.
Beauty Spending Is Moving Beyond Basic Products
The rise in spending is not limited to consumers choosing more expensive products. The report points to wider beauty routines as another source of growth.
Consumers are adding products such as sunscreen, serums, treatments, fragrance, concealer, primer and blush to their routines. Products are also being designed around specific needs such as acne, pigmentation, hydration, dandruff and hair fall.
Skincare is projected to grow from Rs 320 billion in FY26 to Rs 550 billion by FY31, while makeup is expected to rise from Rs 160 billion to Rs 260 billion. Haircare is projected to grow from Rs 400 billion to Rs 570 billion.
Among adjacent categories, fragrance is projected to grow from Rs 70 billion to Rs 130 billion, while nutraceuticals are expected to rise from Rs 70 billion to Rs 160 billion.
Online Beauty Spending Is Also Shifting
Online BPC spending is projected to rise from USD 6 billion in FY26 to USD 14 billion by FY31, taking its share of the overall market from 25 per cent to 34 per cent.
Quick commerce is projected to account for 30-40 per cent of online BPC spending by FY31, compared with around 15 per cent in FY26. Specialist beauty platforms are projected to hold 15-25 per cent, while direct-to-consumer channels are expected to account for around 10 per cent.
The report also projects the number of new-age BPC brands with revenue above Rs 1 billion to rise from 70-80 in FY26 to more than 150 by FY31.
