Men's grooming industry surges: A handsome revolution taking the world by storm
With listed companies like Emami, Marico, Nykaa and Info-Edge leading the pack with acquisitions, investments and exponential Growth, this revolution has taken the world by storm, redefining traditional notions of masculinity and personal care.
In a world where men’s grooming was once considered a niche market, the men's grooming industry has witnessed a remarkable surge in recent years. With listed companies like Emami, Marico, Nykaa and Info-Edge leading the pack with acquisitions, investments and exponential Growth, this revolution has taken the world by storm, redefining traditional notions of masculinity and personal care.
Emami, a leading player in the male grooming business, reported a staggering 29 percent growth in their latest quarter. The company's commitment to understanding the unique needs of modern men has paid off, catapulting them to the forefront of the industry. Their latest acquisition, The Man Company surpassed the Rs 200 crore revenue milestone in FY23, boasting an impressive 40 percent growth. Marico’s Beardo too, crossed the Rs 100 crore mark in FY23 with higher growth projected. FSN E-Comm also stepped up to the plate, experiencing an astonishing 204 percent growth in their Nykaa Man and other newer offerings.
The men's grooming industry has come a long way, transforming from a lukewarm category with limited products to a vibrant ecosystem of innovation and growth. Previously overshadowed by its female counterpart, the industry has risen to prominence, now accounting for a substantial share of the personal care market. With men comprising 52 percent of the population and personal care revenue reaching 11 percent, the potential for further expansion is immense.
Several key factors have fueled this remarkable growth. Increased awareness around men's skin and haircare has revolutionized grooming routines, as men strive to look and feel their best. The societal acceptance of beards, once viewed as unconventional, has now become a fashion statement, exemplified by the transformation of the Indian cricket team over the years. This shift in cultural norms has paved the way for new-age brands and products specifically tailored to men's needs.
Furthermore, higher disposable incomes and enhanced digital connectivity have played a significant role in shaping the men's grooming landscape. The evolving preferences of the modern man, combined with greater access to information and products through online platforms, have propelled the industry's expansion.
According to market research firm Euromonitor, the male grooming market has experienced substantial growth and is projected to continue its upward trajectory. From a market size of 12,500 crore in 2021, it is expected to reach a staggering 19,500 crore by 2026. The market breakdown reveals that shaving holds the largest share at 43 percent, followed closely by toiletries at 42 percent, and fragrances at 15 percent. The compound annual growth rate (CAGR) between 2021 and 2026 also looks promising, with shaving projected to grow by 6-7 percent, toiletries by 10-11 percent, and fragrances by 12-13 percent.
The industry has not been immune to merger and acquisition activity, further underlining its potential for growth. Marico's acquisition of Beardo, Emami's increased stake in The Man Company, and the infusion of funds into Bombay Shaving Company and Ustraa have all contributed to the industry's scale and expansion. Traditional players are realizing the untapped potential of men's grooming and are actively joining the race.
While the industry celebrates these remarkable achievements, challenges and opportunities lie ahead. Men's grooming products continue to be predominantly sold through modern trade channels, limiting accessibility for some consumers. Traditional players must embrace innovation to keep up with the ever-evolving demands of the market. Additionally, cultural barriers and lingering stigmas around male grooming may still pose challenges, although societal acceptance continues to grow.
The question remains: how much headroom does the men's grooming industry have to bloom? With a nascent category witnessing robust growth, the presence of new brands and offerings, and high gross margins, the future appears bright. The industry's potential for further expansion is undeniable, fueled by the concerted efforts of both established players and emerging brands.
First Published: Jun 14, 2023 3:43 PM IST
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