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

As of 2021, India's skincare market was valued at approximately $2.6 billion, reflecting a compound annual growth rate (CAGR) of 7.7% from 2016 to 2021. Within this market, the personalized skincare segment is emerging as a significant growth area, driven by increasing consumer demand for tailored solutions and the proliferation of digital platforms.

The personalized skincare sector in India is projected to grow at a CAGR of around 10.7% over the next decade, outpacing the global average of 7.8% . This growth is fueled by factors such as the rise of direct-to-consumer (D2C) brands, increased e-commerce adoption, and the integration of technologies like AI-powered skin diagnostics and virtual consultations. These innovations enable consumers to access customized skincare solutions without traditional in-person dermatology visits.

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, Market Research