Prime Highlights
- India’s beauty market is projected to grow from around $23 billion in 2025 to $40 billion by the end of the decade.
- Global companies including Estée Lauder and L’Oréal are increasing their presence in India’s beauty industry through acquisitions and investments.
Key Facts
- Forest Essentials is an Indian Ayurvedic beauty brand acquired fully by Estée Lauder in March.
- Online channels are expected to account for around 35% of India’s beauty spending by 2030, up from 8% five years earlier.
Background
India’s rapidly expanding beauty and personal care industry is now luring many large multinationals owing to increasing incomes, e-commerce sales, and increasing product awareness among consumers.
The Indian beauty industry has been estimated to be worth close to $23 billion in 2025 and to hit an estimated $40 billion by the end of the decade. It is expanding faster than the overall retail and economic growth in India.
Global beauty companies have already stepped up investments. In March, Estée Lauder acquired Indian Ayurvedic beauty brand Forest Essentials. In June, L’Oréal acquired a majority stake in digital personal care company Innovist. Unilever has also made several beauty investments in India through its venture capital arm in recent years.
Experts say rising purchasing power is a major reason behind the industry’s growth. India’s per capita income crossed $2,000 in 2019, a level linked with higher discretionary spending. By 2030, 155 million Indian households will be earning above $9,500 annually.
The concept of digital inclusion has brought about changes in the way that consumers shop for beauty products. The e-commerce sector will account for 35% of total spending on beauty in 2030 from 8% during the previous five years.
The outbreak of the COVID-19 pandemic has worsened this situation, as it has led to an increase in the popularity of self-care and digital inclusion in small urban regions.
Indian local players such as Hyphen and mCaffeine have benefited from this trend. They have seen their sales increase, and this has shown that the Indian beauty industry is very strong.
The combination of high-income, digital inclusion and shifting preferences is likely to continue attracting global investors in the Indian beauty industry.
