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The Indian salon industry has undergone a remarkable transformation over the past decade, driven by shifts in consumer behaviour, evolving beauty standards, and an increasing emphasis on personal grooming. As we step into 2025, the industry is on the cusp of significant evolution, with franchising and innovation poised to play a crucial role in its growth trajectory.
Growing Market Size and Demand
The salon industry is among the fastest-growing segments within India's beauty and wellness sector. According to a report by Facts & Factors, the market size of India’s salon sector was valued at approximately USD 10.55 billion in 2023 and is projected to reach USD 22.12 billion by 2032, growing at a CAGR of 8.57% between 2024 and 2032. This growth is driven by heightened awareness of personal grooming and self-care among consumers.
Rising disposable incomes and the expanding middle class are pivotal to this growth. A younger, appearance-conscious population is increasingly seeking professional beauty and grooming services. Notably, this trend is no longer confined to metro cities but is spreading to smaller towns and tier-2 cities, fuelled by better connectivity, growing aspirations, and the influence of social media.
“The outlook for 2025 remains positive. The momentum from 2024, marked by robust festive spending, sets a strong foundation for growth. This sector will further benefit from India’s stable economic trajectory and vibrant market environment,” says Vipul Chaturvedi, CEO, Lakme Lever Pvt. Ltd.
The Influence of Social Media and Beauty Standards
In today’s digital age, social media has emerged as a powerful platform influencing consumer preferences. Platforms like Instagram, YouTube, and TikTok have popularized beauty influencers, tutorials, and grooming routines, significantly boosting the salon industry.
In 2025, salons are expected to continue leveraging digital marketing strategies to reach wider audiences. Influencer marketing will become increasingly prominent as brands collaborate with content creators to showcase their services and products. This symbiotic relationship not only drives traffic to salons but also establishes new revenue streams, enhancing visibility and customer engagement.
The Rise of Luxury and Premium Salons
While budget-friendly salons remain a vital part of the market, there is a noticeable shift toward premium and luxury salon experiences. With rising disposable incomes among India’s affluent class, high-end beauty treatments, personalized services, and premium products are gaining traction.
Luxury salons now offer much more than traditional services, providing an immersive experience that includes advanced technology, exotic treatments, and serene environments. Services like medical-grade skincare, personalized consultations, and holistic wellness packages are becoming increasingly popular. In the coming times, the market will see greater segmentation, with salons targeting specific niches and focusing on exclusivity and customization.
Technological Advancements in Salon Services
Technology is set to revolutionize the salon industry. From virtual consultations to AI-powered beauty treatments, salons will harness cutting-edge innovations to enhance customer experiences and streamline operations. Augmented reality (AR) tools, for instance, allow clients to visualize hairstyles or makeup before making decisions, a trend expected to become mainstream in 2025.
AI-powered skin analysis tools are also gaining traction, offering precise diagnostics and personalized treatment plans. As these technologies become more affordable, they will reach a broader customer base. Automation and advanced tools will further improve service accuracy, reduce manual errors, and boost customer satisfaction.
“The salon industry must focus on innovation and prioritize customer-centric approaches to thrive,” notes Vipul Chaturvedi.
Sustainability and Ethical Beauty
With growing awareness of environmental issues, Indian consumers are becoming more conscious of sustainable beauty practices. Salons are increasingly adopting eco-friendly measures, such as using organic and cruelty-free products, minimizing waste, and implementing sustainable sourcing methods.
Some establishments are even moving toward plastic-free operations and green technologies. The rise of vegan and organic beauty products aligns with consumer demand for ethical brands, pushing salons to integrate sustainability into their offerings and communicate these values effectively to attract eco-conscious clients.
Looking Ahead: A Groomed India
By 2025 end, India’s salon industry is expected to be larger, more diverse, and technologically advanced. The rising middle class, growing influence of social media, and increasing demand for premium experiences will drive this transformation. However, challenges such as a shortage of skilled professionals and competition from unorganized players will require businesses to innovate and adapt continuously.
Overall, the industry is poised to thrive, offering a wide array of services tailored to the evolving needs of a more beauty-conscious population.
