In India, the wellness, beauty and personal care industry is undergoing a major transformation. Consumption trends are expanding significantly as Indians living in metropolitan and suburban areas become aware of different aspects of beauty and wellness.
Per capita spending on cosmetics and personal care products in 2017 was reported to be around INR 450. From 2019 he predicts that between 2024, this number will almost double. Indian Beauty and Wellness Industry is estimated to be worth INR 901.07 billion in 2018, growing at a compound annual growth rate (CAGR) of 18.40% during 2019-2024 to reach INR 2,463.49 billion is expected to reach
Industry growth is driven by increased access to products, rising disposable income levels, and growing awareness of skin care products and their uses. Covid has also been a catalyst for growth in this sector. As the trend of working from home grows, people are spending more time by themselves. As a result, the demand for self-care and skin care has increased, driving the growth of the industry in India over the last two years.
Moreover, as the female labor force increased in Tier 1 and Tier 2 cities, purchasing power increased regardless of gender, and earning women became less dependent on their families for personal care spending. This growth trend has been seen consistently over the next year and is expected to gain even more momentum by 2024.
By 2023, the number of domestic and international beauty and wellness businesses in India should grow and expand in India. 2022 saw the launch of a ton of new products across the Indian beauty retail industry. This trend he will accelerate in 2023.
Here are some interesting trends to expect in the wellness industry in 2023.
Natural or Chemical-Free Ingredients: Ingredients derived from plants and other natural sources are becoming more and more popular in India. Awareness and the added appeal of having zero side effects has led to an increasing shift towards chemical-free products. We focus on making products with less This trend towards natural/chemical-free products will only escalate in 2023.
Improved product knowledge: Today’s consumers are more conscious of the products they use. They go into the details of their product ingredients, understand the importance of environmental sustainability, and focus on sustainable packaging. This is also changing the outlook for businesses and brands as they must respond to changing consumer behavior. Today, companies can’t make products that look good, smell good, and package great. Companies are working hard to use ingredients that cater to well-informed millennial audiences.
Increased use of e-commerce platforms: E-commerce plays a key role in the growth story. The greatest advantage e-commerce offers is access to remote and remote markets. Reduced inventory requirements and faster upgrades. E-commerce has also enabled businesses to get feedback from consumers more quickly, increasing the proportion of customization in the market. Businesses are being forced to innovate at a faster pace to meet consumer demands. E-commerce is a true enabler of the beauty and wellness industry, expanding geographic reach, expanding audiences and driving interest from previously unserved segments.
Moving to Tier 2 and Tier 3: Demand for beauty and wellness products is no longer confined to urban centers. Growth in Tier 2 and Tier 3 cities is almost outpacing demand in specific categories. Last year, about 30-40% of consumer demand came from small cities. All thanks to e-commerce being the catalyst that drives the demand and supply of wellness products in the Tier 2/3 market and beyond. Along with increasing consumer knowledge, the personal care market is experiencing rapid and consistent growth in small towns and cities. 2023 will also see a successful penetration of the latest innovations and trends in India’s hinterland.
In a nutshell, the beauty and wellness industry is poised to accelerate its growth story in 2023. Although slowing overall economic growth may pose some short-term hurdles, The upward movement will persist. The industry must respond to changing market dynamics, consumer needs and ever-evolving customer demands. Data analytics therefore plays a vital role in product portfolios, innovative technologies and new product planning for brands and manufacturers seeking to bring to market beauty products customized to rapidly evolving consumer tastes and preferences. fulfill.
