New Delhi: Global cosmetics companies are racing to capture India’s rapidly expanding beauty market, with major players such as Shiseido, L’Oréal, Estée Lauder, and Beiersdorf positioning the country as a key growth driver amid slowing sales in developed economies.

India’s beauty and personal care industry, valued at around $28 billion in 2024, is projected to reach $48.3 billion by 2033, growing at an annual rate of 5.6 percent. Within this sector, the luxury beauty segment, now worth about $800 million, is expected to grow fivefold to $4 billion by 2035. Despite the growth potential, luxury products still account for only 4 percent of India’s overall beauty market, far behind the share in Southeast Asia and advanced economies.

To gain traction in this challenging but promising landscape, multinational brands are tailoring products to local conditions, investing in digital platforms, and collaborating with Indian influencers and designers. Estée Lauder has deepened its presence by investing in Ayurvedic label Forest Essentials and other domestic startups, reflecting a strategy of combining global reach with local appeal.

Import data also underscores the rising demand. India’s skincare and cosmetics imports rose sharply to $171.9 million in the financial year 2025, more than doubling from $80.9 million in 2020. Lipsticks, face creams, and premium skincare lines have seen the fastest growth, with global names like Shiseido, L’Oréal, and Unilever capitalizing on consumer appetite for high-end products.

Local players are equally fueling the boom. Beauty retailer Nykaa reported a twofold rise in quarterly profit, with strong sales of premium products such as Chanel and Supergoop driving a 23 percent jump in overall revenue. Celebrity-backed labels are also reshaping the market, as seen in actor Kriti Sanon’s Hyphen skincare brand, which recently crossed ₹400 crore in sales. Meanwhile, Indian cosmetics company Colorbar has announced plans for a public listing in 2027 after doubling its revenue, signaling growing investor confidence in homegrown brands.

Retail channels are evolving quickly. Nykaa leads with an omnichannel model, combining warehouses, online platforms, and more than 70 physical stores, including premium “Nykaa Luxe” outlets that feature international labels. Direct-to-consumer brands have also surged, now accounting for 15 percent of India’s e-commerce sector, compared with just 2 percent five years ago, and are projected to grow at an annual rate of 40 percent.

Analysts say India’s youthful population, rising incomes, and digital adoption make it the world’s “last bastion” of beauty growth. As global companies ramp up investments and local brands innovate to meet evolving consumer tastes, the Indian market is set to become a defining battleground for the international cosmetics industry.