Beauty & Personal Care Insights 2023

Proprietary + Confidential
The Beauty Industry

in India
Oct 2023
Contents 01 Industry Overview: Beauty & Personal Care
02 Google Full Funnel : Beauty Edition
03 Deep Dive: Skin Care
04 Deep Dive: Hair Care
05 Deep Dive: Makeup and Cosmetics
06 Deep Dive: Perfumes & Fragrances

Confidential and Proprietary 2023
India’s economy is internet-fuelled: Expected to become
the #3 global economy with digital contributing 20% of GDP
$5T
#5
$3.1T 20% digital
India is expected #6
to become a 8% digital
$2.8T
$5 trillion $2T
#7
#6
7% digital
economy by 2030 4.5% digital
2015 2019 2021 2030
Digital to grow from $250B in 2021 to $1T in 2030

Consumption is
moving beyond urban
Scale is the only normal
Rural internet users > urban internet users;
India will have 900M+
71% of all new internet users will be from internet users by 2025
rural 91% of Amazon’s new customers came
from Tier 2 cities LY
Growing Indian Digital

Landscape - Govt Initiatives
and Cheap Data as Key
drives
Digitization providing
a leveling playing field
Entertainment is BIG
99% of pincodes in India serviced by
2X growth in screens with ~1B
E-Commerce
screens consuming content by 2025
Food tech giants serviced 5K orders a min
across 300 cities on new year’s eve
Shopping journeys start online, irrespective of the
channel of purchase
9/10
consumer journeys were
84%
influenced by digital
86% of offline shoppers Consumers use Google Search Of Indians feel“it’s important
leveraged at least one digital and YouTube as anchors in their to research on
touchpoints to make new, non-linear shopping products/services before
shopping decisions journeys they get to the store”
Source: Google Kantar Path to Purchase Wave 2 , Oct 2022 (all category shoppers n = 2000)| Google commissioned Ipsos Consumer Tracker Oct 2022 (n=1000)
Increased exploration means the purchase journey is no
longer linear and becomes harder to decipher
And YouTube is influencing them across every stage of their journey
Over
Over
of shoppers say online
video has helped them
decide which specific
of YouTube viewers brand or product to buy. 2
say that YouTube
makes them more 1
aware of new brands.
of YouTube viewers
say they bought a
brand as a result of
seeing it on YouTube.3
1. Source:Source: Google/Talkshoppe, US, whyVideo study, n=2000 A18-64 Genpop video users, Feb 2020.
2. Source: Google/Ipsos, Global (U.S., CA, BR, U.K., DE, FR, JP, IN, KR, AU), “How People Shop with YouTube” Study, 18–64-year-olds who go online at least monthly and have purchased something in the last year, n=24,017, July 2018.
3. Source: Google/Talkshoppe, US, whyVideo study, n=2000 A18-64 Genpop video users, Feb 2020.
North States
32M*
UP+UT
YT has 467M+ monthly reach
Raj NCR
North East
26M* 20M 70M*
17M*
BH+JH
Guj
MP+CH 45M*
26M* WB
34M*
Ori 28M*
Mah
51M* 13M*
AP+TL
Kar 29M*
22M*
TN
Ker 24M*
14M*
Spending similar time but more engaged on YouTube than
television
Engagement & Experience

Television Online Video with Online Video vs. TV
▪ Online video is accessed more frequently. TV

viewing also has other activities happening
Watch multiple times 51% 71% simultaneously suggesting lower engagement
a day 1.4x of TV
▪ Experience of watching videos online is 1.7X
Watch at least 1 hour better than TV
49% 50%
daily
▪ Avg age of TV viewers in India went up to ~61
years in 2021 while median age in India is 28
Average daily time 82 minutes 81 minutes years
Other activities (along 21% Access internet*

with watching TV) 27% Text/Call others*
Source: Google Kantar offline research July-Sep 2019

Indians turn to Google for an improved local experience,
with a 55% YoY growth in localised searches
in stock
available near me 67%

of IN consumers use omni-channel for
buy today
research and purchase*
Are we capturing this opportunity?
*Source: Survey: Indian consumer sentiment during the coronavirus crisis

The Beauty and Personal Care industry in India is growing

fast and set to reach ~2K Billion INR in 2025
The dip caused by Covid saw

quick recovery and accelerated
growth
Source: Statista
And this growth is driven by Digital Players
By 2025, the online beauty and personal care industry is set to be a USD 5.7 Bn
Industry
Source: Statista
Search demand on google mimics this growth:

searches for the category have been the highest in 2023 & continue to grow fast
Beauty Category, IN
The category sees two clear peaks in a year - Summer peak and Winter Peak
~530M
Avg. monthly searches
expected in the category
in the next three months
+6%
Avg. growth in searches
expected in the
next three months
2020 2021 2022 2023 (& projected)
Source: Google internal data for Beauty Category

Hair Care is the largest sub category in terms of search

demand, closely followed by Skin Care
YoY Growth
16%
20%
11%
8%
11%
Average Monthly Searches
Source: Google Internal Data last 12 months

Winter is coming! Product QoQ Growth in Q4 2022
Lip Balm 81%

Some products see rapid Butter 69%
growth in Q4 during the onset
Moisturizer 62%
of winter, scale up campaigns
Lotion 43%
to capture this oncoming rise in
Serum 35%
demand
Pumice Stone 34%
Bleach 23%
Essence 21%
Mist 19%
Cream 17%
Sunscreen 10%
Toner 9%
Source: Google Internal Data

It’s wedding season!

QoQ Growth in Q4
Occasion
2022
As the wedding season and
festivals spike up in Q4, searches Party 72%
for makeup for these specific
Festive 63%
occasions see a significant QoQ
increase Wedding 50%
Evenings 7%
Everyday 3%
College/Office -10%

Consumers are seeking information

Be present at throughout the consumer journey right from Discovery to Purchase and
even beyond
Haircare Skincare
Search Query by Generic Search Query Growth
vs Brand
Brand
Search 25% 11% 15%
16%
86%
Make-up & Perfumes &
Cosmetics Fragrances
26% 27%
Generic Generic Brand
Search Search Search
Key Takeaway There is no little to no loyalty in the category - Ensure brand presence, especially for your core TG through always on
investments across the funnel
YouTube plays an important role in the highly visual category
The industry invests in video spends across the funnel, but is dominated heavily by
spends towards brand building
Youtube
Spends Split
>80%
Video spends on
Building the brand
15%
Video Spends on
driving sales
Key Takeaway YouTube has become a must to build the brand, sustain top of the mind and unlock growth in a highly competitive
industry
Source: Google internal data

Google offers solutions to reach consumers at every step of this

journey
Generic Keywords Demand Gen (Affinity)

Discovery
Video Reach + Connected TV Creator Promotions on YT
Brand (+) Product Keywords Demand Gen (In-market)

Research
Video View
Brand Keywords Demand Gen (Custom Audiences)

Purchase
Performance Max Video Action (w/ Product Feed)
Remarketing Audiences across Demand

Gen, Video Action Loyalty
Customer Match Lists
Get ready to capture the Festive Demand
Coverage Creatives Agility

Provide personalized, Leverage insights & tools
Capture all shopping intent by
frictionless experiences to maximize opportunity
showing up on the most
wherever consumers during this festive season
relevant queries
shop.
Use category trends for your business from the next sections to
ensure efficient keyword targeting
Manage your Keyword Categories
(Categories = cluster of user searches that are logically grouped)
Market Trends: Cover the most requested and fastest growing categories
Cover the most requested Brand + Generic queries, which are related to your business
Ensure highly requested products/services are covered in the product catalogue
Consider seasonality trends & changing user behaviour
Consider targeting competitive Keywords related to your business

Ensure Product Titles include seasonal/occasional terms to capture festive

demand
Basic naming structure: Brand + Product Type + Attributes
Category Recommended Structure Example
Seasonal Occasion + Product Type + Attributes Valentine’s Day Personalized Chocolates
<Client Name> Personalised Chocolates (Assorted, Box of 12) |

Example 1: Chocolates Brand + Occasion + Product Type + Attributes
Valentine’s Day Personalised Gifts
Valentine’s Day Bouquet of 12 Red Roses | Valentine’s Day

Example 2: Flowers Occasion + Product Type + Attributes
Flowers Online by <Client Name>
Example 3: Diwali Occasion + Product Type + Attributes Diwali Gourmet Snacks & Dry Fruits Gift Box by <Client Name>
Use feed rules to optimize for business need or performance uplift. More details
Make it easier for shoppers to find & engage with your Shopping Ads Proprietary + Confidential
Update your creative strategy with festive promo
Ensure PMax campaigns have the right asset coverage, the right quality “messaging” and image types, & creative testing (asset insights in
PMax) with Machine Learning.
Full coverage of asset Have at least 1-2 Leverage longer Consolidate Campaigns
types in each ad group always on (evergreen) description lines and to leverage historical
ad groups asset caps learnings
Leverage your creator network
CREATOR PROMOTIONS FEATURE
SPONSORED CONTENT
GOOGLE AD CAMPAIGN CREATOR PROMOTIONS

(e.g. VAC, VVC, VRC 2.0, CAMPAIGN
In-feed Video for Consideration)
Shoppable Video formats to help drive commerce
● Enhance your TrueView for

action video ad with product
imagery & detail from your
Google Merchant Center to drive
more clicks & conversions
● Showcase your product

catalogue while users engage
with your video
Deep Dive:
Skincare in India
Source: HBR 2023

Searches and investments in the Skincare category on

Google have been growing constantly over the last 3 years
+26% YoY
+2% YoY
Opportunity to
capture existing
demand:
Investments plateaued in
the last one year while
searches continued to
grow rapidly
(Additionally CTRs also
saw a 10% growth)
Source: Google Internal Data, Category: Skincare

Search Landscape: What information are people looking for in Skincare

Top themes that people are searching for in the category
1.3Bn 500M
+16% y/y +30% y/y
220M
+26% y/y
130M
+39% y/y 90M 80M
+25% y/y
+24% y/y
Products Body Part Ingredients Benefits Ailments

Skin Care
Key Takeaway Ingredients is the fastest growing trend - make these front and centre in your communication

Search Landscape: What are people looking for
1.3Bn 500M
+16% y/y +30% y/y
225M
+26% y/y
130M
90M
+39% y/y
+25% y/y
80M
+24% y/y

Skin Care

Cleanser, Face wash and Lotions are the top searched products.
Serums and Sunscreens have seen the highest YoY growth
Top skincare products that people are searching for

1.3Bn 500M
+16% y/y +30% y/y
225M
+26% y/y
130M
90M
+39% y/y
+25% y/y
80M
+24% y/y

Skin Care

Face-related queries were substantially higher than other body

part related queries in the category. “Lips” related queries saw
maximum growth
Body parts that people are seeking information for

Top products by body part:

What are the top products people are seeking in each category?
Face Body Lips

1.3Bn 500M
+16% y/y +30% y/y
225M
+26% y/y
130M
90M
+39% y/y
+25% y/y
80M
+24% y/y

Skin Care

Vitamin C is the most popular ingredient searched for in Skincare

products and remedies. Tretinoin & Niacinamide are growing rapidly
Top ingredients that people are searching for

Vitamin C as an ingredient stands out in terms of demand, ad depth and

clicks.
Turmeric has the lowest ad depth but significant search demand
How competitive is it to advertise each ingredient?
Niacinamide Vitamin C
Tea Tree
Oil Milk
Salicylic
Green
Acid
Tea
Rose Aloe
Vera
Turmeric
Key Takeaway Search is crowded - Use Video Action Campaigns with ingredient first messaging
Source: Google Internal Data Ad depth: impressions per matched query (if a query shows an ad, how many ads are shown?)
People are getting particular about ingredients:

People searching for Natural and chemical free ingredients among skin care
products is on the rise with a 47% growth in the last 3 years

1.3Bn 500M
+16% y/y +30% y/y
225M
+26% y/y
130M
90M
+39% y/y
+25% y/y
80M
+24% y/y

Skin Care

Whitening and Glow are the top searched for benefits by audiences.
Sun protection is catching up fast
Top Benefits that people are searching for

1.3Bn 500M
+16% y/y +30% y/y
225M
+26% y/y
130M
90M
+39% y/y
+25% y/y
80M
+24% y/y

Skin Care

Tan removal remedies are most searched for. Searches for finding
remedies for White/Dark spots grew by ~60% in the last 12 months
Top Ailments that people are searching solutions for

Summarising Skincare Trends
● Searches (+25% YoY) and CTRs (+10% YoY) are rising means people are actively
seeking information on google - capture existing demand on search
● Top themes being searched for:

○ Products - Face wash, Cleansers and Lotions are top hits. Sunscreen is seeing rapid growth
○ Body Part - Dominated by searches for products and remedies related to face care
○ Ingredients - Vitamin C seems to be the most popular ingredient people search for. There’s a
rapid rise in people seeking organic/chemical free products
○ Benefits - Searchers are seeking products and solutions for Whitening, Glow and Sun
Protection. Sun protection is the fastest growing
○ Ailments - Tan removal remedies are the most searched for followed by searches on oily skin,
dryness and acne

Hair Care
There have been ~2.5Bn Haircare related searches over the last 12
months in india, growing at 23% YoY

The category is getting competitive: Investments and Avg CPCs in

the category have grown much faster than demand in the last 3 years
15% growth
42% growth

The industry is leveraging YouTube to drive brand awareness as

well as purchases to compete in the cluttered industry
43%
Of all hair related
searches are taking
place on YouTube

Audiences are using search to seek information on hair care products,

ingredients and ailments
Product Reviews/comparison searches are on the rise

Shampoo and Oil are the most searched products in the subcategory.
Serum is catching up with 51% YoY Growth
31% YoY
20% YoY
51% YoY
10% YoY
24% YoY
24% YoY
19% YoY
27% YoY
54% YoY
14% YoY
83% YoY

Keratin, minoxidil and castor oil were the top 3 searched

for ingredients Rosemary saw significant growth

16Mn
Searches in the last 12 months
regarding Organic/Natural
ingredients and remedies in the
Hair Care Category
+25% YoY Growth

Hair fall is the most searched and most invested in problem area
followed by Dandruff and Dryness

Make-Up &
Cosmetics
67% of total search volume for Make-up & Cosmetics is driven by Proprietary + Confidential
Generic searches, growing at par with Brand searches
Generic Searches Brand Searches

67% Share growing @ 9% YoY 33% Share growing @ 10% YoY
People are searching for People are searching for
kajal myglamm
makeup sugar cosmetics
makeup kit lakme
foundation faces canada
nail art my glamm
highlighter dermaco
unique maybelline lipstick
concealer sugar lipstick
nude lipstick lakme foundation
● Leverage the search themes listed above to design appropriate ads to capture demand from these searches.
Key
Takeaway ● Ensure that our always-on generic & competitor Search campaigns capture these search themes with an
appropriate budget.

Industry Landscape: Opportunity on Google Search
Search queries for your key categories reached over 200M Searches
100%
29%
21%
15%
Face
200M 60M
Lips 7%
Eyes
+11% y/y
+8% y/y 50M
+13% y/y Others
40M
-10% y/y 16M
-15% y/y
Face Makeup Lip Makeup Eye Makeup Accessories, Tools &

Others
Make-up & Cosmetics

38% YoY
-16% YoY
3% YoY
Top 19% YoY
searched 5% YoY
Themes -7% YoY
14% YoY

Face Makeup
Searches & Investment for Face Makeup saw positive growth YoY in 2023
Indexed Search Trends Indexed Investment Trends
● Searches for the category are at an all time high, +8% YoY in the last 12 months.
Key
Takeaway ● Investment is also at an all time high, +19% YoY in the last 12 months and is expected to further increase in the
upcoming months

Face Makeup
Foundation leads by volume but Serum emerging strongly

Top Face Makeup searches
Foundation (▼ 5%)
Highlighter (▲ 5%)
Concealer (▼ 6%)
lakme foundation (▼ 12%)
fit me foundation (▲ 2%)
Bb cream (▲ 10%)
Lakme cc cream (▼ 16%)
minimalist serum (▲ 100%)
Key ● Foundation is the most searched product type whereas Serum is the fastest growing (+104%
Takeaway YoY); Opportunity for Quench to capture share

Lip Makeup
Searches for Lip Makeup have seen a positive growth YoY while Investment Proprietary + Confidential
on the Search network reduced
● Searches for the category are at an all time high, +13% YoY in the last 12 months.
Key
Takeaway ● Investment in 2023 (-7% YoY) is slightly lower than early to 2022 levels, however it is expected to pick up in the
upcoming festive season (Opportunity for us to capture share since industry spends have declined)

Lip Makeup
Lipstick is the largest sub category in Lip Makeup growing at 8% YoY

Top Lip Makeup searches
nude lipstick (▼ 2%)

maybelline lipstick (▲ 32%)
sugar lipstick (▲ 63%)
lakme lipstick (▼ 2%)
lipstick shades (▼ 6%)
myglamm lipstick (▲ 38%)
matte lipstick (▼ 13%)
nude lipstick shades (▲ 32%)
Key ● Lipstick is the most searched product type whereas Lip Gloss / Lip Balm is the fastest growing (+49%
Takeaway YoY)
Source: Google Internal Data, Date Range: P12M - Jul 2022 - Jun 2023, Growth compared for the period Jul 2022 - Jun 2023 vs Jul 2021 - Jun 2022 | Network: Google Search in IN
Eye Makeup
Searches & Investment for Eye Makeup saw a degrowth in 2023
● Searches for the category have saturated and saw a degrowth of -5% YoY in 2023 so far
Key
Takeaway ● Investment in 2023 (-7% YoY) is slightly lower than early to 2022 levels, however it picked up in May-Jun and is
expected to further pick up in the upcoming festive season

Eye Makeup
Kajal is the largest sub category in Eye Makeup followed by Eye Shadow &
Eye Liner
Top Eye Makeup searches
kajal (▼ 29%)
eyeshadow palette (▼ 30%)
eye makeup (▼ 17%)
mascara (▲ 20%)
eyeshadow (▼ 38%)
eye liner (▼ 9%)
eyebrow pencil (▼ 17%)
lakme kajal (▼ 12%)
● Kaajal is the most searched product type followed by Eye Shadow and Eye Liner
Key
Takeaway ● Generic Eye Make up queries (e.g. eye makeup dummy / practice board, eyebrow makeup kit) are the fastest
growing (+56% YoY) followed by Mascara (+6% YoY)
Source: Google Internal Data, Date Range: P12M - Jul 2022 - Jun 2023, Growth compared for the period Jul 2022 - Jun 2023 vs Jul 2021 - Jun 2022 | Network: Google Search in IN
Perfumes &
Fragrances
Revenue in the Fragrances segment amounts to US$311.6M in

2023; expected to grow annually by 1.70% (CAGR 2023-2027)
Fragrance Segment Revenue in India ( Year)
Source: Statista Fragrance Industry Report, Oct 2021

Online Revenue: 12.7% of Total Revenue in 2023, Marking a 19%

YoY Growth
Online vs Offline Revenue Share: Fragrance
Source: Statista Fragrance Industry Report, Oct 2021

Perfumes & Fragrances is one of the fastest growing Proprietary + Confidential
category in India
+45%
Perfumes Category, IN
YoY Growth, 2023 YTD ~200M

Perfumes &
Fragrances
Searches in 2022
40%
YoY growth in
queries 2022 vs
2021
2020 2021 2022 2023 (& projected)
Source: Google internal data for Perfume & Fragrance Category

MH & UP have the highest search interest constituting 30%
of the total Perfumes & Fragrances Searches
Source: Google internal data for Perfume & Fragrance Category; 2023 YTD Growth compared to 2022 same time
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Proprietary + Conﬁdential

The Beauty Industry

02 Google Full Funnel : Beauty Edition

03 Deep Dive: Skin Care

04 Deep Dive: Hair Care

05 Deep Dive: Makeup and Cosmetics

06 Deep Dive: Perfumes & Fragrances

economy by 2030 4.5% digital

2015 2019 2021 2030

Digital to grow from $250B in 2021 to $1T in 2030

Growing Indian Digital

Engagement & Experience

▪ Online video is accessed more frequently. TV

Other activities (along 21% Access internet*

Source: Google Kantar offline research July-Sep 2019

available near me 67%

Are we capturing this opportunity?

*Source: Survey: Indian consumer sentiment during the coronavirus crisis

The Beauty and Personal Care industry in India is growing

The dip caused by Covid saw

Search demand on google mimics this growth:

2020 2021 2022 2023 (& projected)

Source: Google internal data for Beauty Category

Hair Care is the largest sub category in terms of search

Average Monthly Searches

Source: Google Internal Data last 12 months

Winter is coming! Product QoQ Growth in Q4 2022

Lip Balm 81%

Source: Google Internal Data

It’s wedding season!

Source: Google Internal Data

Consumers are seeking information

Source: Google internal data

Google offers solutions to reach consumers at every step of this

Generic Keywords Demand Gen (Affinity)

Brand (+) Product Keywords Demand Gen (In-market)

Brand Keywords Demand Gen (Custom Audiences)

Remarketing Audiences across Demand

Get ready to capture the Festive Demand

Coverage Creatives Agility

Ensure highly requested products/services are covered in the product catalogue

Consider seasonality trends & changing user behaviour

Consider targeting competitive Keywords related to your business

Ensure Product Titles include seasonal/occasional terms to capture festive

Category Recommended Structure Example

Seasonal Occasion + Product Type + Attributes Valentine’s Day Personalized Chocolates

<Client Name> Personalised Chocolates (Assorted, Box of 12) |

Valentine’s Day Bouquet of 12 Red Roses | Valentine’s Day

Update your creative strategy with festive promo

CREATOR PROMOTIONS FEATURE

GOOGLE AD CAMPAIGN CREATOR PROMOTIONS

● Enhance your TrueView for

● Showcase your product

Source: HBR 2023

Searches and investments in the Skincare category on

Source: Google Internal Data, Category: Skincare

Search Landscape: What information are people looking for in Skincare