Most Profitable Segments In The Beauty Products Industry To Invest Your Money In

Sneha Santra
Sneha Santra May 15 2019 - 3 min read
Most Profitable Segments In The Beauty Products Industry To Invest Your Money In
The beauty industry in India is currently estimated at USD 950 million is estimated to reach USD 2.68 billion by the year 2020

The beauty industry has witnessed a remarkable growth in the last decade; it is emerging to become one of the most profitable industries in recent times with many startups emerging in the sector. There are numerous factors that are fuelling the growth of this industry, such as the emergence of e-commerce, improving demographics, rising disposable income, expansion of organised retail in Tier II & III cities in India, changing consumer preferences, huge youth population, etc.

India is one of the fastest growing consumer markets globally. It is also becoming hot-spot for many international players, and recent years have seen the entry of major brands such as Smashbox, Aveda, Huda Beauty, Aveeno, Laneige, Estee Lauder, Kiehl’s etc. The beauty industry in India is currently estimated at USD 950 million is estimated to reach USD 2.68 billion by the year 2020. Therefore, investing in this industry can prove to be highly profitable for anyone at the moment. Below are the following segments in the beauty industry to invest your money in.

Skin Care

Women in India are getting more and more conscious about their skin with rising desire to appear youthful, young and bright, thereby increasing demand for various types of skin care products. Many companies have also started to conduct online media campaigns targeting a specific audience for their products. Similar trends are catching on in rural India as well as small cities. Moreover, the growing trend towards clean and flawless skin is becoming fashionable, which is also driving Indian consumers to opt for the latest skincare products.


The cosmetics’ market in India is expected to exhibit strong growth in the coming years. The huge and growing youth population is among the major factors boosting growth in this category. The emergence of online beauty retailers like Nykaa, Purplle etc. have made it easier for customers to navigate through millions of beauty products and purchase them at compelling prices in the comfort of their homes. In addition to this, an increasing number of beauty blogs, influencers and exposure to social media are also fuelling the growth of the cosmetics industry.

Oral Care Products

Oral care is the third largest segment in the beauty industry. There is a growing trend towards using traditional oral care products.  Factors driving this segment include aggressive promotional and marketing activities by oral care companies. Increasing visibility of these products in commercial advertisements, newspapers and television is boosting their popularity, resulting in higher adoption.

Hair Care

Hair loss has become one of the biggest problems in today’s world due to pollution, stressful work hours and routines, inability to take care, and many other factors. There is a growing inclination among Indian people to look smart and presentable, some of which can be lost with baldness or receding hairlines. Rapid westernization and changing lifestyles are expected to augment the haircare market growth. Indian youth are readily experimenting with new hair care products and services, both in terms of style as well as for good quality hair. The consumers are also ready to pay a premium for value-added products. Moreover, there is an increasing preference for professional hair care products that are meant for a specific type of hair and/or hair related problems.

Bath and Shower Products

Demand for value-added bath and shower products, such as shower gels are expected to grow in the coming years, due to the variety available and the knowledge that people have today about their skin types and things. The rising disposable income, expanding organised retail in Tier II and Tier III cities, the introduction of multiple product variants by major players, and the experimenting nature of people today are expected to positively influence the bath and shower products market in the coming years.

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