India is emerging as a global beauty industry hotspot with significant long-term growth potential, according to a study by the Beauty Think Tank, part of the US Fashion Institute of Technology (FIT).
Beauty in a Shifting Global Landscape found India has an expanding middle class, a disproportionately large younger generation, and strong economic prospects drive increased per capita spending on discretionary goods.
This presents a significant opportunity for personal care and beauty businesses looking to diversify their geographic reach, capture new consumers, and mitigate risks associated with relying heavily on a single or few markets for new growth.
Students from the FIT, a part of the State University of New York, said India's GDP growth for last year was 7%, making it one of the world's best-performing economies; India is projected to be the world's third largest economy by 2030.
Population growth is a driving factor as India has surpassed China as the most populous country in the world with 1.42 billion people.
Another factor is infrastructure, both physically and digitally, including India's robust investment in transportation and smart cities ($121 billion through 2024) and the rise of digital infrastructure, with 90% of the population having access to the internet by 2030.
India is also the global leader in digital payments.
Cultural pillars, such as Bollywood, weddings, yoga, and Ayurveda, meanwhile show India's unique culture of beauty rooted in tradition.
“As a key emerging market, India is an attractive investment opportunity for the beauty industry,” said FIT.