Trends driving market demand

• Premiumization and daily skincare routines
  Skincare has become central to daily wellness. With rising incomes, millennials and Gen Z consumers are adopting multi-step routines with cleansers, toners, serums, and masks. This layering trend is increasing demand for custom bundles suited to individual needs.
  
  

• Skin diversity and inclusivity
  India’s demographic complexity brings a wide range of skin concerns—from pigmentation and acne to sun damage. Personalized solutions help brands go beyond the one-size-fits-all model, offering effective care for diverse consumer needs.
  
  

• Digitally enabled personalization
  India’s high smartphone penetration is driving adoption of AI-based tools like quizzes, photo analysis, and virtual try-ons. These digital touchpoints enable scalable customization across cities and towns.
  
  

• Conscious consumption and clean beauty
  More consumers are now opting for minimalist, sustainable, and clean skincare. Personalization aligns with this shift, as users expect transparency and the ability to choose products free from sulfates, parabens, and artificial fragrances.
  
  

• Growth of chronic skin conditions
  Urban living has led to a rise in long-term concerns like acne, eczema, and melasma. Consumers are seeking solutions that evolve with their skin. Personalized platforms offer not just product recommendations but continuous monitoring and adjustment—vital for managing chronic issues.

Role of AI in enabling personalization

AI is pivotal in scaling personalized skincare. From analyzing skin texture using computer vision to recommending formulations through machine learning, technology is enabling dermatologist-like precision. As users engage, AI models improve—leading to smarter matches, earlier detection, and better tracking. Chatbots and mobile diagnostics have become affordable entry points for customized care.

Market outlook

In 2019, India’s skincare market was already large and growing briskly. Industry reports put the segment at roughly US$1.7 billion in 2018, implying high single- to double-digit annual growth over 2014–2019. Growth has been driven by rising disposable incomes and urbanization, a booming middle class (especially working women) and a new wave of male grooming, and heightened skin-health awareness (e.g., demand for sunscreens, anti-ageing and pigment-correcting creams in polluted environments). Digital trends have amplified this boom: e‑commerce and social media have broadened access to both premium and niche brands. For context, India’s overall retail cosmetics market – including skincare – was about US$10.4 billion in 2018, reflecting these tailwinds.

Looking ahead, analysts expect the small personalized‑skincare niche to expand fastest. Global studies note that AI- and data-driven skin-analysis tools, mobile apps, and virtual consultations are enabling truly customized regimens, and India’s digitally savvy D2C beauty startups are already offering online diagnostics and tailor-made products. These forces suggest very high (likely double-digit) CAGR for India’s personalized skincare segment in the 2020s, as consumers increasingly demand tech-enabled, customized solutions.

Themes we are investing in

• Mass affordability without compromising personalization
  Solutions that deliver personalized care at scale will tap into India’s next wave of digital-first wellness spenders.

• Efficient personalization at scale
  Solutions that deliver effective, personalized skincare affordably and accessibly will unlock India’s next phase of digital wellness adoption.
  
  

• Trust through transparency and education
  As skincare becomes more data-driven, brands that educate users, demystify ingredients, and build intuitive digital experiences will inspire long-term trust.

References

Indian Journal of Dermatology, McKinsey & Company, Vogue Business, Reuters, CRI-report, GlobeNewswire