Is India going to be the next big thing in beauty for international brands

Every day, new trends in the beauty sector keep the industry humming, and a significant portion of its clientele is Indian. For the last several years, both foreign and new domestic players have been drawn to the quickly expanding urban customer base for beauty and personal care goods.

 

With a market for beauty products ranking fourth globally, India seems to be just getting started. Industry experts said in December at Cosmoprof India, which was hosted at the Jio Convention Centre in Mumbai, that the Indian beauty sector is expected to grow at an astounding 40% annually by 2026. The Indian beauty market is predicted to grow at a compound annual growth rate (CAGR) of 10.91% from 2023 to 2028, with a projected value of $2.27 billion.

“India’s beauty industry, despite its massive 1.4 billion population, holds considerable potential for further growth and expansion,” said Spoorthy Shetty, CEO of BBlunt India, during the event. This potential is best shown by the ₹2,100 crore professional hair care industry alone.

India’s Increasing Knowledge of Cosmetics and Skincare Products

The rise in social media trends and influencer marketing in recent years has played a significant role in raising awareness of and creating demand for beauty goods in India. Trends like the “glass skin” appearance from Korea, “clean girl,” “latte,” “strawberry,” and many more have enticed prospective customers to try new products and regimens. People began to develop skincare regimens, attempt do-it-yourself home cures, and become more concerned of their skin as a result of the worldwide epidemic COVID-19. This led to a surge in the demand for skincare products.

In addition, the demand for makeup, skincare, haircare, and personal hygiene goods and equipment is rising due to the quickening growth of e-commerce platforms and the physical businesses that follow.

The Global Beauty Houses’ Presence in the Indian Beauty Market

Even though a number of well-known brands in the beauty business have been serving the Indian market for a few years, new brand launches have been arriving in droves lately as India emerges as the new center of attraction for the sector. Shoppers Stop, a division of the Raheja Group, signed a distribution agreement with Shiseido, a Japanese company, for NARS Cosmetics in 2023. The much-anticipated release of Rihanna’s Fenty Beauty at Nykaa on March 7th, just after her performance at the Ambani pre-wedding, preceded this year’s June 15 debut of Selena Gomez’s Rare Beauty at Sephora India.

The emergence of new national and international companies, together with consumers’ increasing awareness of the need for clean, organic, cruelty-free, vegan, and sustainable goods, have led to a trend toward careful and educated purchasing. The rise and expansion of several e-commerce platforms catering to the sector has resulted in a surge in demand for items that solve problems and are creative, all at reasonable costs. In addition, as disposable income rises, companies in India are seeing a rise in demand for luxury and superior beauty products.

In September 2023, Redseer Strategy and Peak XV released a joint analysis that said that, among similar countries, the Indian beauty and personal care industry is expected to develop at the fastest pace in the world. They said that customers are prepared to spend more for goods that are customized to meet their unique requirements, which is fueling the fast expansion of the masstige and premium categories.

We have seen Indian celebrities sign ambassadorship deals with global beauty giants like Bhumi Pednekar, who became Mac Cosmetics’ first Indian ambassador, and Miss World Manushi Chhillar, who became the global brand ambassador of Estee Lauder, in addition to the growing demand and awareness of beauty and self-care products. With these advancements, India is poised to emerge as a worldwide destination for beauty in the near future.