Poised to touch $20 billion by 2025, India's beauty industry is booming as demand for services soars

India's beauty business is growing rapidly and becoming a major industry. The beauty and wellness industry in India is fuelled by increasing disposable incomes and rising awareness about beauty products among the youth. 

The demand for beauty services is also driven by the growing number of working women who are increasingly spending on beauty services.

According to a report by KPMG, the Indian beauty and wellness industry is growing at a compound annual growth rate (CAGR) of 20.6 per cent and is estimated to reach $20 billion by the end of 2025.

The industry is also driven by the rising number of salons and spas, the launch of new products and the increasing penetration of international players in the market. 

The market is further boosted by the growing demand for organic and herbal products, which are becoming increasingly popular among the consumers.

Danish Batra, Managing Director, Hair Masters luxury Salons said, "The beauty business in India has witnessed a sharp growth in the past 5 to 6 years, earlier we used to have 80% revenue which only comes from the female customers for their beauty and hair styling, but now we are witnessing the trend of male grooming as today’s men is equally contributing and focusing more about their styling and now there is a 50-50 ratio between male and female customers." Hair Masters today has 62 outlets across pan India and plans to open more stores this year and are targeting to make it 100 by 2024.  

Skills training a major boost to the sector

The government has taken initiatives to promote the beauty industry, by launching several schemes such as the Pradhan Mantri Kaushal Vikas Yojana (PMKVY). Walking on similar lines, Hair Masters luxury Salons also send their staff members to London and Dubai for advance training purposes. In addition, the UK-returned entrepreneur has started hair & care training academies across their outlets for staff training purposes.

Beauty Business Booming in India: A Bright Future Ahead

The industry is expected to grow at a CAGR of 19-20 per cent over the next five years, with the increasing demand for beauty products and services.

"There are many Indian and international brands doing good business in India now and we must have a healthy competition within the industry, our focus should be upon client retention and that can only happen by providing quality services," noted Batra.

The market for organic beauty products in India is expected to reach $1.7 billion by 2025 while the Indian haircare market is estimated to reach $4 billion by 2023.