Styling India’s Growth: The Indian Salon Landscape

India’s beauty salon market is now undergoing a very radical makeover of its own. Earlier considered by many merely a seasonal trip for wedding or festival preparations, the act of being groomed has now sneaked into everyday existence especially for the younger generation. Grooming no longer stands for any luxury or vanity: it is a mix of taking care of oneself, building confidence, and expressing an individual.

This change happens because of changed lifestyles and mindsets. With over 432 million women (2024) forming part of the workforce and dual-income households being common, today families are higher spenders yet have lesser time for anything, making professional grooming services a natural choice. Social media has played a role, too, in dispersing global beauty crazes in an accessible manner-from the pretty and quirky teenager in a tier-two small town of India to the busy working professional of a mega city.

What feels so exciting about these generations is their spirit for rewriting the rules of beauty. They care about ingredients, are motivated about sustainability, and want experiences over transactions. They don't just ask for a haircut anymore; they're asking for clean beauty products, cruelty-free treatments, inclusivity, and tech-level treatments for skin analysis powered by AI and personalised consultation. This has slightly nudged the classical beauty salon to position itself as a life styling destination rather than merely as a service provider.

And it’s not just the big cities driving this growth. Tier-two and tier-three cities are buzzing with demand, thanks to rising disposable incomes and aspirations to match. Many local entrepreneurs, often women trained through beauty education programmes, are opening salons in small towns and villages, taking professional grooming to places it had never reached before. Big brands like Lakme Salon are also tapping into this wave with franchise models, already building a presence across 190 cities with over 450 outlets.

The very technology that has brought all of these processes together is the beauty of it all. From digital appointments to consultations to visibility on social media, salons are connecting with clients well beyond their own immediate locality. This was unthinkable just a few short years ago. Now, it is the very thing that is quickly transforming the entire industry.

Sector overview

India’s beauty salon sector is booming, driven by rising incomes, urbanisation and changing lifestyles. The broader beauty and personal care (BPC) market is projected to reach about Rs. 2,97,534 crore (US$ 34 billion) by 2028; the salon segment itself was valued at roughly Rs. 1,01,949 crore (US$ 11.65 billion) in 2024, with forecasts of ~Rs. 2,01,185 crore (US$ 22.99 billion) by 2033 (CAGR ~7.9%). These figures underscore the market’s rapid expansion, with salons no longer being rare indulgences but part of everyday consumer habits. Industry analysts note that India is experiencing a beauty revolution. Rising disposable incomes, increasing urbanisation, greater e-commerce penetration and heightened consumer consciousness about grooming and skincare have placed the country’s BPC market on a robust growth trajectory.

Several key factors are fuelling this surge in consumer interest in beauty and wellness:

• Rising affluence: Only about 4% of India’s working-age population (roughly 60 million people) currently earn more than Rs. 8,73,059 (US$ 10,000) per year. However, this relatively affluent cohort is growing at ~12 % annually. Projections suggest “Affluent India” will hit ~100 million consumers by 2027, a doubling of today’s base. As incomes rise, so does spending on personal grooming and premium services: the Lakme Salon industry overview emphasizes that beauty and wellness industries stand to gain most from this trend.
• Urbanisation and lifestyle change: Movement to cities and exposure to global fashion and media have altered attitudes toward beauty. NCERT analysis confirms that urban migration and advertising have made Indians more eager to look presentable. Salons have expanded from basic haircuts to full-fledged beauty centres offering skin, hair, nail care and therapies. The Hair and Beauty Show (HBS) India report notes that over the past decade the salon industry has seen remarkable expansion because of rising household earnings together with a greater public understanding of self-care and global makeup fashions.
• Changing demographics and workforce: With roughly 432 million Indian women employed as of 2024, more households have dual incomes. Surveys indicate about 240 million people in India now actively engage in personal grooming and wellness routines. This large consumer base (including young professionals and students) is increasingly willing to pay for professional beauty treatments. As one study observed, consumer perceptions of beauty have shifted from special occasions to an essential aspect of daily life.
• Premiumisation and niche services: India’s younger generations (millennials and Gen-Z) are aspirational spenders. There is a notable shift from mass-market products toward premium, dermocosmetic and functional beauty brands. Urban salons now offer high-end facials, anti-ageing treatments and even dermatology-backed services. Specialty segments – notably bridal makeup are expanding rapidly: salons now cater not only to brides but also grooms, relatives and friends, through package offers. Luxury spas and wellness centres with customised packages are increasingly popular in major cities.
• Digital and cultural influence: Digital media and online commerce are reshaping consumer behaviour. Social influencers and celebrities on platforms like Instagram are influencing beauty trends. Moreover, stereotypes around male grooming are changing. Men’s grooming, once an under-penetrated category, is growing fast – startups such as ‘Bombay Shaving Company’, ‘Beardo’ and ‘The Man Company’ (see Key Players below) are capitalising on this cultural shift. At the same time, Indian consumers are becoming more ingredient and health conscious. Demand for natural, vegan, cruelty-free and “clean” beauty products is rising.

In summary, India’s beauty salon market is in the spotlight because it sits at the intersection of several powerful trends. Consumers now view grooming as part of daily wellness, supported by rising purchasing power, urban lifestyles and digital connectivity. This creates a favourable environment for salon growth and innovation.

Evolution of the salon market

The Indian salon industry has evolved dramatically from its traditional roots. Traditional salons – originally known as beauty parlours offered basic services such as haircuts, shampooing, nail care and simple skincare. These were often small, family-run shops. Over time, larger beauty centres and unisex salons emerged to provide a wider array of treatments such as facials, hair colouring and manicures/pedicures. However, even these salons from the 1990s to 2000s era operated largely on walk-in business models with manual booking and minimal technology integration.

In comparison, contemporary salons are very technologically advanced and experience oriented. The present-day chains and boutiques use digital tools at all customer touchpoints. An example is online and mobile booking systems, which have become the norm. Customers can now book a visit via an app or the salon websites, without calling or visiting them. Payment has also become digital with transactions being contactless and wallet based. The back-end functions are run through customer relationship management software (CRM), loyalty applications and digital inventory systems to optimise leads, feedback and inventory management. 

Augmented Reality/Virtual Reality (AR/VR) and personalisation are already starting to emerge in salons: some salons have AR/VR tools that allow clients to virtually preview new hair colours or makeup looks before they commit to it. Salons have also integrated artificial intelligence (AI)-based skin-scanning technologies, which suggest personalised facials or products, curating experiences based on the specific needs of clients. In a nutshell, customer experience, including discovery and post-treatment follow-ups are becoming more digitalised and data driven.

Another major shift is the expansion beyond metro centres. Previously, quality salons were mostly in Tier-1 cities. Now chains and franchises are rapidly opening in Tier-2 and Tier-3 cities. Smaller-city demand is rising thanks to growing incomes and aspirations. Franchise models have accelerated this spread: by standardising services and training, brands can replicate their business quickly in new locations. Digital marketing, often via local social media influencers, helps these salons attract regional customers. Simultaneously, unisex and men’s salons have become more common, reflecting social acceptance of men’s grooming.

While home-service salons (beauticians visiting clients’ homes) are an emerging trend in India, our sources focus on the wider industry, so the exact impact of this model is not documented here. Instead, the key evolution is that salons themselves have become hybrid operations: they combine in-salon luxury experiences (spas, medical aesthetics) with omnichannel access (apps, e-commerce product sales). The takeaway is that today’s salon is more than a haircut shop – it is a digitally-enabled wellness centre offering premium, personalised experiences.

Conclusion

India’s beauty salon market has entered a new era. From modest parlours to tech-driven wellness centres, the industry is being transformed by innovation and consumer demand. Key points are:

• Strong growth drivers: Rising incomes, urban lifestyles and a large base of grooming enthusiasts (240 million and counting) are driving market expansion.
• Tech and digital: Mobile apps, online booking and digital marketing are now integral to the salon model. Businesses that embrace data analytics, personalisation (AI/AR tools) and e-commerce platforms are likely to scale faster.
• Segment diversity: The emergence of men’s grooming, bridal services, luxury spas and dermatologically backed treatments mean the salon category is broader than ever. This diversity provides multiple revenue streams (from grooming to wellness) for operators.
• Market breadth: Expansion into Tier-2 and -3 cities is well underway, implying that salons will soon be ubiquitous outside the top metros. Likewise, salons are integrating traditional Indian (Ayurvedic) and global (Korean/Japanese style) offerings to appeal across urban and regional tastes.
• Role of players: Established chains such as Lakme Salon (Unilever) are leading expansion, while newer D2C brands and male-grooming startups are capturing emerging segments. Collaboration between service providers and beauty product brands has become common, illustrating how the industry is an ecosystem rather than isolated silos.

In conclusion, India’s salon ecosystem is no longer about grooming, it’s about experience, innovation and transformation. For investors, entrepreneurs and policymakers, the key takeaway is to align with these trends. The market is maturing; success will favour salons and brands that personalise services, leverage digital technology and expand both geographically and into wellness. With a huge and fast-growing consumer base, India’s salon industry is poised to remain one of the world’s most dynamic beauty markets in the coming decade.