Is India set to become the new beauty destination for global brands?

The Indian beauty market is estimated to reach $2.27 billion by  2028, with a CAGR of 10.91% during the forecast period (2023-2028).  

Is India set to become the new beauty destination for global brands?

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The beauty industry keeps buzzing with different trends every other day and consumers from India form a large part of the beauty community. The rapidly growing urban consumer base for  beauty and personal care products has been attracting international as well as new national participants for a few years now. 

India is the 4th largest beauty market in the world and this seems to be just the beginning. In  December, at Cosmoprof India, held at the Jio Convention Centre in Mumbai, industry  executives claimed that the Indian beauty market is projected to expand at a staggering rate of  40% by 2026. They added that the Indian beauty market is estimated to reach $2.27 billion by  2028, with a CAGR of 10.91% during the forecast period (2023-2028).  

At the event, Spoorthy Shetty, CEO of BBlunt India remarked, “India’s beauty industry, despite  its massive 1.4 billion population, holds considerable potential for further growth and  expansion. The professional hair care market, alone valued at ₹2,100 crore, exemplifies this  potential.” 


The Growing Awareness of Cosmetic and Skincare Products in India  

Over the past few years, the burgeoning of social media trends and influencer marketing have greatly contributed to the awareness and demand creation for beauty products in India. Trends  such as the Korean glass skin look, clean girl makeup, strawberry makeup, latte makeup, and  so much more have drawn potential consumers to adopt new products and routines. The global  pandemic COVID-19 also created a wave for skincare products as people became more  conscious about their skin and started to forge skincare routines and try D-I-Y home remedies.  

Furthermore, the accelerating expansion of e-commerce platforms and their subsequent  physical stores are also contributing to the increase in demand for cosmetic, skincare, haircare,  and personal care products and tools.  

The Appearance of Global Beauty Houses in the Indian Beauty Market  

While several big names in the beauty industry have been catering to the Indian market for a  couple of years now, recently new brand launches have been pouring in with India becoming  the new beauty industry magnet. In 2023 we saw Raheja Group’s Shoppers Stop sign the  distribution partnership of NARS Cosmetic which is owned by the Japanese house Shiseido.  June 15 marked the launch of the beloved singer and actor Selena Gomez’s Rare Beauty at  Sephora India; while this year started with the much-awaited launch of Rihanna’s Fenty Beauty  at Nykaa on 7th March just after her performance at the Ambani pre-wedding. 

What’s Next?  

The introduction of new international and national brands and the growing consciousness for  sustainable, cruelty-free, vegan, clean, and organic products have created a trend for informed  and thoughtful shopping. There is an increase in the demand for problem-solving and  innovative products that are now available at competitive prices, thanks to the emergence and  growth of several e-commerce marketplaces dedicated to the industry. Furthermore, with an  increase in people’s disposable income, brands are witnessing a growing demand for premium  beauty and luxury among Indian consumers.  

As per a joint report by Redseer Strategy and Peak XV, published in September 2023, the  Indian beauty and personal care market has projected the highest growth rate globally among  comparable nations. They reported that there is a willingness among consumers to pay more  for products that are tailored to their specific needs, creating rapid growth in masstige and  premium categories.  

Along with the growing demand and awareness of beauty and self-care products, we have also  witnessed Indian celebrities signing ambassadorship deals with global beauty giants such as  Miss World Manushi Chhillar becoming the global brand ambassador of Estee Lauder and  Bhumi Pednekar becoming Mac Cosmetics’ first Indian ambassador. With such developments,  it is not far that India will soon become a global beauty hotspot. 

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