India, you e-beauty! The blush-and-glow of the new billion-dollar boom

India’s beauty and personal care industry is experiencing an unprecedented transformation, driven by surging online sales, increased global brand interest, and the rapid expansion of homegrown players. The country has emerged as the world’s fastest-growing online market for beauty products, with beauty e-commerce and quick commerce sales rising 39% in value between June and November 2024 compared to the previous year, far outpacing the 3% growth in physical store sales, according to NielsenIQ. The shift towards online shopping reflects a structural change in consumer behaviour, particularly among younger demographics, with 17% of Indian consumers purchasing beauty products online in 2024, up from 13% a year ago. Platforms such as Amazon, Myntra, Blinkit, Zepto, Nykaa, and Reliance Retail’s Tira are leading this growth, while brands are strengthening their digital presence to capture demand for convenience, variety, and influencer-driven trends. 

India’s beauty and personal care market, valued at Rs. 2,43,236 crore (US$ 28 billion), is expected to reach Rs. 2,95,358 crore (US$ 34 billion) by 2028, growing at 10-11% annually. While the organised offline beauty retail sector is expanding slower, companies like Shoppers Stop are making strategic moves, including exclusive stores for MAC and Clinique and a distribution deal with Shiseido’s NARS Cosmetics. With makeup sales rising 15.5% and skincare 10.5%, domestic and international brands fiercely compete for market share. Industry giants such as Reliance, Tata Group, and Hindustan Unilever (HUL) are expanding aggressively. At the same time, startups face challenges in scaling and profitability. Recent consolidations include HUL’s Rs. 2,955 crore (US$ 340.16 million) acquisition of Minimalist, a Jaipur-based beauty brand. As e-commerce drives the sector’s growth, India’s beauty e-commerce market is projected to grow at a 25% compound annual growth rate, solidifying the country’s position as a key player in the global beauty landscape. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.