India’s beauty and salon sector has become a reflection of rapidly changing consumer behaviour and lifestyles. A salon visit, once limited to weddings and festivals, has now become part of everyday life.
According to IBEF, grooming is no longer viewed as a luxury or vanity, but is increasingly linked to self-care, confidence, and individual expression. As of 2024, approximately 432 million women are part of the Indian workforce.
This shift has led to a rise in dual-income households, naturally accelerating demand for professional grooming services. Social media has further fuelled this trend, ensuring that global beauty standards and trends reach tier-2 and tier-3 cities just as effectively as metros.
Let’s explore this shift in consumer behaviour and the Indian salon industry.
What’s Happening?
The Indian salon industry is no longer limited to basic services such as haircuts. Consumers are increasingly demanding clean beauty solutions, cruelty-free products, AI-based skin analysis, and personalised consultations. This evolution has transformed salons into life-styling destinations.
According to IBEF data, India’s broader Beauty and Personal Care (BPC) market is projected to reach approximately Rs 2,97,534 crore (US$ 34 billion) by 2028. Meanwhile, the salon segment itself was valued at around Rs 1,01,949 crore (US$ 11.65 billion) in 2024 and is estimated to grow to about Rs 2,01,185 crore (US$ 22.99 billion) by 2033, registering a CAGR of nearly 7.9%. This clearly indicates that salon services have become part of everyday consumption habits.
Transformation of the Salon Industry
As per The Economic Times, the Indian salon industry is gradually shifting from a purely service-oriented model to a luxury experience-driven model. Consumers are no longer seeking just a haircut; they are opting for premium facials, anti-ageing treatments, bridal and groom packages, and wellness-focused services.
IBEF data also suggests that technology has become a crucial part of this transformation. Digital appointment systems, CRM tools, loyalty apps, and AI-based skin-scanning solutions have made the customer journey more data-driven. Some salons are even using AR/VR technology to allow customers to preview hair colours or makeup looks virtually. This has increased consumer confidence and created opportunities for up-selling.
Growth Coming from Tier-2 and Tier-3 Cities
The growth of the salon industry is no longer confined to metro cities. According to IBEF, demand is accelerating in tier-2 and tier-3 cities, driven by rising disposable incomes and growing aspirations. The franchise model has made this expansion more accessible and scalable.
For instance, Lakme Salon has expanded its presence to over 450 outlets across 190 cities, employing nearly 4,000 trained professionals. This highlights the scale and potential of the organised salon segment. Additionally, approximately 240 million Indians are actively engaged in grooming and wellness routines, creating a large and sustained consumer base for the sector.
What Does This Mean for Investors?
From an investor’s perspective, the Indian salon industry offers attractiveness on multiple fronts. First, the sector is closely linked to India’s expanding affluent population. According to IBEF, only 4% of India’s working-age population earns more than Rs 8,73,059 (US$ 10,000) annually, but this segment is growing at an estimated 12% per year and could reach nearly 100 million consumers by 2027.
Margins are also improving due to premiumisation and personalisation. High-end facials, medical aesthetics, and wellness services are strengthening the revenue mix for salons. Additionally, the growing synergy between branded salon chains, D2C beauty brands, and tech-enabled platforms is making the overall ecosystem more scalable and sustainable.
What’s Next?
Looking ahead, the growth potential of the Indian salon industry appears even more compelling. Digital scalability, expansion into tier-2 and tier-3 cities, and deeper integration of wellness services will remain key growth pillars. IBEF estimates that India’s BPC market could reach Rs 2,89,483 crore (US$ 33.08 billion) by 2025, recording a CAGR of approximately 3.48% during 2025-2030.
Moreover, rising demand for natural and Ayurvedic products, the mainstreaming of men’s grooming, and the expansion of medical-aesthetic services are set to transform salons into holistic wellness hubs. In summary, India’s salon sector is no longer just about grooming, it has evolved into a convergence of experience, technology, and lifestyle.
*The companies mentioned in the article are for information purposes only. This is not investment advice.
*Disclaimer: Teji Mandi Disclaimer
