India has emerged as the fastest-growing online market for beauty products, with e-commerce and quick commerce sales surging 39% between June and November 2024. This growth far outpaces the 3% rise in physical store sales, driven by rising digital adoption and influencer marketing. Global brands like MAC and Dior, alongside homegrown players such as Nykaa and Sugar, are rapidly expanding to capture this booming sector.
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India’s beauty and personal care industry is undergoing a rapid transformation, driven by soaring online sales, global brand expansions, and the rise of homegrown players. The country has emerged as the fastest-growing online market for beauty products, attracting both established and emerging brands eager to capitalize on this momentum.
Between June and November 2024, beauty e-commerce and quick commerce sales surged 39% in value compared to the previous year, significantly outpacing physical store sales, which grew by just 3%. Luxury brands like MAC and Dior, along with mass-market favorites such as Sugar and Lakmé, are expanding aggressively to capture this booming market.
“Consumer gravitating to e-commerce is a mix of the market expanding and taking share from stores,” said Tara James Taylor, senior vice president – global beauty & personal care at NielsenIQ. “The size of the pie is increasing, there’s a younger age dividend, consumers are ready to spend and experiment, and the social influencer community has driven a lot of curiosity.”
The shift to online beauty shopping is not just a passing trend—it reflects a deeper change in consumer behavior, particularly among younger generations. By 2024, 17% of Indian consumers were purchasing beauty products online, up from 13% the previous year. In contrast, Brazil, the second-fastest-growing online beauty market, stands at 27%.
Both global and Indian brands are investing heavily in their digital presence. Platforms such as Amazon, Myntra, Blinkit, Zepto, Nykaa, and Reliance Retail’s Tira are driving e-commerce growth. Nykaa, for instance, reported a 30% year-on-year increase in beauty orders in the December quarter, with 70% of its top 110 city orders delivered within a day, while its fashion business saw minimal growth.
“Clean and sustainable beauty is a big trend, and wellness continues to be an emerging trend. Indian consumers are particularly ingredients-focused,” Taylor noted.
The rise of beauty influencers and bloggers has further accelerated online sales, giving niche brands the opportunity to thrive. Consumers are increasingly experimenting with new formulations and international trends, contributing to the market’s expansion.
Currently valued at US$ 28 billion, India’s beauty and personal care market is projected to grow to US$ 34 billion by 2028 at an annual rate of 10-11%. Despite this rapid growth, per capita spending remains relatively low—US$ 14 in India compared to US$ 38 in China and US$ 313 in the US—indicating vast untapped potential.
While offline beauty retail continues to expand at a slower pace, major players are adapting to changing preferences. Shoppers Stop, for instance, has introduced exclusive stores for premium brands such as Estée Lauder’s MAC and Clinique and entered into a distribution deal with Shiseido’s NARS Cosmetics.
Among product categories, makeup has seen the highest growth in India, with a 15.5% rise in value sales, followed by skincare at 10.5%.
With such strong market potential, India’s leading conglomerates are making significant investments in the beauty sector. Reliance entered the market with its Tira platform in 2023, while Tata Group runs its beauty retail arm through Tata Cliq Palette. Adding to the competition, Ananya Birla, daughter of billionaire Kumar Mangalam Birla, announced the launch of Birla Cosmetics, set to introduce a nationwide range of beauty and personal care products in 2025.
This intensifies competition among India’s most prominent business families, alongside established players like Hindustan Unilever (HUL), L’Oréal, and Nykaa.
While global brands such as L’Oréal and Shiseido view India as a key growth market, local direct-to-consumer (D2C) beauty startups are reshaping the landscape. These brands, fueled by e-commerce, have seen rapid adoption, but many now face challenges in scaling and profitability. To maintain growth, several have turned to quick commerce platforms for wider reach and faster deliveries.
Industry consolidation is also accelerating, with major players acquiring niche brands that have built strong customer loyalty. HUL recently acquired a 90.5% stake in Jaipur-based beauty brand Minimalist in a deal valuing the company at ₹2,955 crore. Known for its science-backed, affordable skincare, Minimalist aligns with Unilever’s global strategy of investing in high-margin beauty segments.
For HUL, beauty and personal care contribute nearly 20% of total revenue and about one-third of profits. However, as brands like Nykaa, Mamaearth, and L’Oréal grow their market share from 33% today to an estimated 42% by 2027, traditional FMCG giants could see their dominance erode. A report by Redseer Strategy Consultants and Peak XV predicts that legacy brands such as HUL and Procter & Gamble could lose 900 basis points of market share, bringing their total to 58% by 2027.
E-commerce continues to be the key driver of India’s beauty boom, breaking traditional retail barriers and creating new opportunities for emerging brands. Companies are focusing on personalized skincare solutions, technology-driven innovations, and loyalty programs to strengthen customer retention. Premiumization is another major trend, with India’s high-end beauty market expected to reach US$ 3-3.2 billion by 2028.
India now accounts for nearly 5% of global beauty market growth, with the country’s beauty e-commerce segment projected to grow at a compound annual growth rate (CAGR) of 25%, outpacing the 14% growth expected in offline retail.
As competition intensifies, a mix of startups, international beauty giants, and domestic conglomerates will battle for dominance. With evolving consumer preferences and continuous innovation, India’s beauty market is not just expanding—it is fundamentally reshaping itself.
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