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BDO India, one of India’s leading professional services organizations, part of BDO International, the 5th largest network globally with a presence in more than 165 countries, launches ‘The Beauty Revolution In The Indian Market’ publication which aims to provide a comprehensive outlook of the Indian BPC market, highlighting the current landscape, emerging trends, challenges, and potential focus areas for sustainable growth.

The publication provides an in-depth view into the changing dynamics of the Indian beauty industry, capturing major trends, growth opportunities, and winning strategies across key segments like skincare, haircare, and cosmetics. The publication also covers how significant PE (Private Equity) and M&A (Mergers & Acquisitions) activities are shaping the BPC ecosystem in unprecedented ways.

The global BPC market is expected to grow at 8% CAGR in the next four to five years. Although India contributes only ~4% to the global BPC market, it is among the fastest growing large markets for BPC. India’s increasing per capita spends on beauty and personal care (BPC) are driven by strong growth factors like rapidly increasing online penetration, the largest youth population in the world, increasing participation of women in the workforce, and rising disposable income among the middle class. Premiumisation, digitisation, and consumer base expansion being the dominant themes, the growing last mile access to consumers in tier II cities and beyond and increasing share of online channels are expected to expand the Indian BPC market.

The top 20 brands, majorly from MNCs, hold ~32% of the BPC market in India, out of which 7 are owned by domestic companies. While only few Indian BPC companies founded in the last decade have surpassed the INR 1000mn mark, several new-age players have demonstrated 30%+ CAGR in the last three years. The segment is experiencing dynamic trends, including the emergence of Indian celebrity-owned beauty brands, inspired by Western celebrity brands (Rihanna’s Fenty Beauty, Kylie’s Kylie Cosmetics, Priyanka Chopra’s Anomaly, etc.); and the increasing share of Masstige and Premium products.    

Samir Sheth, Head of Deal Advisory Services, also the International Liaison Partner, at BDO India, says, “With favourable conditions in demand, distribution, and capital access, the Indian beauty sector is uniquely positioned to build brands with lasting impact. As Indian consumers increasingly seek high-quality products that blend transparency, effectiveness, and cultural authenticity, brands committed to ethical production and sustainability have a distinct edge.”

Ashish Bagadia, Corporate Finance and Investment Banking Partner at BDO India, says, “The Indian Beauty and Personal Care market is undergoing dynamic transformation, with growing consumer demand for natural, ethical, and personalised products. Integrating traditional Indian practices with scientific breakthroughs and digital innovation presents vast opportunities, however, sustainable and capital-efficient growth will be essential. While India’s BPC segment is experiencing premiumisation and consumer base expansion, both incumbents and new-age companies are increasingly adopting omnichannel strategies.”

Expert Recommendations from the Publication

• Companies must focus on efficient capital allocation, prioritising product differentiation and continuous innovation that aligns with core values and evolving consumer needs.
• Rethinking communication strategies would be crucial, shifting from only customer acquisition to fostering long-term brand loyalty through digital engagement and community building.
• Data-driven decisions will enable brands to remain agile and adapt to rapidly changing trends, ensuring they stay ahead in this dynamic landscape.

Companies that exhibit a higher revenue-to-funding ratio have demonstrated sustainable growth, characterised by higher CAGR and higher EBITDA compared to their counterparts. On the back of strong investment momentum in the industry, the BPC segment is attracting players with deep pockets.

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