Investors smell opportunity as men’s grooming triggers a gold rush

Within a few days, Godrej Consumer Products Ltd (GCPL) has acquired Mumbai-based men’s grooming brand Muuchstac. ₹450 crore deal, Bombay Shaving Company raises ₹136 crore from new investor Sixth Sense Ventures and former cricketer Rahul Dravid.

Deals in the segment have more than doubled to $85 million so far in 2025 compared to 2023, according to data from Venture Intelligence. In the last five years, approximately 66 deals have been signed, including VC-PE (venture capital-private equity) investments as well as acquisitions of large consumer companies.

Rather than spreading too thinly across categories, companies are now focusing on a few fast-moving and premium products such as face washes and trimmers, believing that increased consumer experience will drive growth.

Rajat Tuli, co-founder of Ustraa, another men’s grooming retailer acquired by wellness and beauty services provider VLCC in June 2023, told Mint that it has helped increase average order values ​​by focusing on premium products such as perfumes and hair growth oils. “We’re seeing men paying more attention to what and why they want to buy a wellness product. Deliberate purchases in niche categories like fragrance are also helping to increase purchase frequency.”

As Bombay Shaving Company prepares to go public “soon”, it is keeping competitive pricing of grooming tools such as trimmers and shaving sets at the heart of its strategy, especially as the market remains dominated by a few big brands such as Gillette and Philips. Shantanu Deshpande, founder and chief executive officer (CEO) of Bombay Shaving Company, which sells grooming products for men and women, said, “Focusing on rapidly evolving consumer needs, designing high-quality products at competitive prices and building the brand continues to be the foundation of what we do. We plan to sustain this performance and take the company public soon, the aim is to do this sooner rather than later.”

These moves underscore the change in the industry’s perspective on the men’s grooming market. Once dominated by a handful of mass-market products such as shavers, deodorants and facial care essentials, this segment is expanding into higher-value segments such as skin care, beard care, fragrances and premium hair styling.

Ankur Bisen, senior partner at market research firm The Knowledge Company, said the acquisitions by major consumer goods companies indicate that the men’s grooming category has entered an early stage of maturity, supported by stronger demand signals and more predictable consumption patterns.

Emami Ltd., owner of The Man Company, told analysts in its September quarter earnings report that it plans to accelerate product launches in what it describes as an “underexploited and underpenetrated” category.

Generation Z drives growth

The main driver of this transition is the changing behavior of male consumers. According to Madhur Singhal, managing partner (consumer and internet) at consultancy firm Praxis Global Alliance, over the past few years young men, especially urban millennials and Gen Z, have shown greater willingness to try new formats, adopt multi-step routines and invest in product categories that were previously seen as discretionary.

The rise of ingredient-focused communication, such as salicylic acid for acne, niacinamide for dark spots, biotin for hair health, has brought products closer to the language of skin care and wellness rather than simple care. This is in line with a broader cultural shift in which men are becoming more conscious about their skin and hair health and less hesitant to spend money on themselves.

“Millennial and Gen Z men are driving disproportionate demand because they are more extroverted, more open to new brands and more willing to experiment,” Singhal said.

Social media-led discoveries, influencer-led education, and deeper acceptance of self-care among men have expanded the market beyond the basics. Growth is no longer limited to metropolises. Tier 2 and Tier 3 cities are also contributing significantly, supported by e-commerce penetration and fast trading platforms that increase trials and impulse purchases.

According to Ustraa’s Tuli, the adoption of grooming products is slowly increasing in India’s small towns as grooming still remains a largely discretionary category. However, according to Tuli, young consumers continue to make first-time purchases as well as repeat purchases.

catch up

But old firms still have a dominant scale. For example, Gillette India reported revenue of approx. ₹2,235 crore for the year ending March 2025 and net profit of approx. ₹418 crore. On the other hand, Philips India’s gross revenue alone is approx. ₹6,630 crore, roughly net profit ₹309 crore. It is not known how much of Philips India’s revenue comes from care products.

Meanwhile, a new generation of gamers is burning cash to keep up. Ustraa’s operating income down 3% in FY24 ₹94 crore, while losses widened ₹50 crore ₹40 crore in FY23 in a highly competitive market. Bombay Shaving Company, on the other hand, saw its operating income increase by 27%. ₹225 crore, losses narrowed ₹62 crore during the year. The Mumbai-based company’s expenses increased by 12%. ₹295 crore.

The Knowledge Company’s Bisen said large FMCG and consumer electronics companies already dominate the men’s grooming and adjacent segments, showing how far new entrants have to go before reaching meaningful scale. Moreover, new-age brands are bound to spend heavily on marketing and offline expansion, which may further reduce profitability in the medium term.

Many companies offer similar product formats, ingredient lists and visual identities, leading analysts to expect a wave of consolidation in the next two to three years. “Companies with strong offline distribution, clear brand positioning or specialized product focus are more likely to survive, while undifferentiated brands may find it difficult to maintain momentum,” Bisen said.

Analysts also predict that there is no room for new players, leaving existing players to find and develop their own niche.