History and trade of the beauty and personal care marketCosmetic products and their application have been documented since the Indus valley culture in India. Before the turn of the century, beauty products, including skincare and hair care were mostly homemade, using herbs and ingredients available locally in India. Besides, some beauty practices were based on routine and other practices were dependent on the seasons. In Ayurveda, Tailams (oils) and Ghritas (clarified butter or ghee) were used for facial beautification.
With globalization, beauty and personal care products from other countries became available in India, increasing accessibility and affordability. One example is the replacement of Shikakai (a powder made from parts of a dry shrub) with shampoos containing surfactants. Ironically, the word shampoo comes from the Hindi word Champo (meaning to press, knead and soothe) borrowed during the colonial era.
Online beauty and personal care marketThe COVID-19 pandemic boosted online discovery and sales of a fresh generation of cosmetic products due to the closure of supermarkets, department stores, hypermarkets, and salons. Similar to China, India’s consumer relocation to online channels has benefited the DTC (direct-to-consumer) brands. One such success story in the sector, founded by Falguni Nayar was Nykaa one of the leading cosmetic companies with the largest share in the online beauty and personal care market.
Moreover, consumers preferred the flexibility and safety of online purchasing and home delivery. Thus, e-commerce surged the beauty industry. For the first time, the market size achieved the largest rise for online beauty and personal care. Other factors that contributed to the expansion of the beauty and personal care market were the trends towards the use of clean and environmentally friendly products. This in turn increased concern about personal grooming driving demand for beauty and skincare business, and the rise of social commerce.