Gen Z, Gen Alpha to drive half of India’s beauty spending by FY31: Brands prepare for new-age consumer

Gen Z and Gen Alpha are set to become the dominant force in India’s beauty and personal care (BPC) market, with their combined share of spending expected to rise to around 50% by FY31 from about 32% in FY24, according to an Aditya Birla Money research report.

The shift comes as India’s BPC market enters a high-growth phase, driven by increasing category penetration, wider beauty routines and the expansion of organised retail. The market is estimated to nearly double from US$23 billion in FY26 to US$42 billion by FY31, growing at more than 12% annually.

Younger consumers reshape beauty demand

The growing influence of Gen Z and Gen Alpha is expected to change not just how much consumers spend on beauty, but also how they discover and select products.

Beauty purchase decisions are increasingly being influenced before consumers reach the checkout stage, with creators, reviews, product claims, ingredients and perceived efficacy playing a larger role. The report said this trend should benefit specialist discovery platforms as well as brands that establish credibility around specific consumer needs.

The opportunity remains significant because BPC shoppers currently account for only around 15% of India's internet users. The number of BPC shoppers is expected to increase from 140 million in FY26 to 200 million by FY30E, creating a substantially larger consumer base for beauty brands.

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Beauty routines are becoming wider and more specialised

The next phase of growth is expected to come from consumers purchasing more products within existing categories and addressing increasingly specific beauty concerns.

The report highlights the expansion of ingredient-led products across sunscreen, body care, lip care and scalp care. Products are increasingly being positioned around concerns such as acne, pigmentation, dandruff, hair fall and skin-barrier repair rather than broad category claims.

This creates opportunities for brands with established expertise in specific consumer needs. The research highlighted Honasa Consumer, whose portfolio includes brands focused on problem-solution skincare and other specialised categories.

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Quick commerce changes how beauty is bought

Younger consumers are also likely to participate in the industry's shift towards faster delivery and wider digital availability. Quick commerce is projected to account for 30-40% of online BPC by FY31, compared with around 15% in FY26.

However, the report does not expect quick commerce to replace specialist beauty platforms. Routine and replenishment purchases such as face wash, shampoo, sunscreen and deodorants are better suited to quick commerce, while premium skincare, colour cosmetics and fragrance often require reviews, product information, shade selection or assurance of authenticity.

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For brands, this means being present across multiple channels will become increasingly important. The report expects D2C websites to account for only around 10% of online BPC by FY31, with marketplaces, quick commerce and offline retail remaining important routes to scale.

As younger consumers gain a larger share of beauty spending, brands that can combine discovery, specialised products, repeat purchases and broad availability could be better placed to capture India's next wave of BPC growth.

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