India’s beauty and personal care industry is undergoing an unprecedented transformation, as online sales and homegrown brands lead the charge in this fast-growing sector. According to NielsenIQ, beauty e-commerce and quick commerce sales surged by 39% in value between June and November 2024, far outpacing the 3% growth in physical store sales during the same period. This structural change in consumer behavior, particularly among younger demographics, is reshaping the beauty market in India.

A Surge in Online Beauty Shopping

The rapid growth of beauty e-commerce is a key driver behind the industry’s success, with 17% of Indian consumers purchasing beauty products online in 2024, up from 13% in the previous year. Leading e-commerce platforms such as Amazon, Myntra, Nykaa, Reliance Retail’s Tira, and Blinkit have capitalized on the increasing demand for beauty products driven by convenience, variety, and influencer-driven trends.

India has now emerged as the world’s fastest-growing online beauty market, outpacing global competitors in terms of both growth and consumer demand. The beauty e-commerce market in India is expected to grow at a compound annual growth rate (CAGR) of 25%, further solidifying the country’s position as a global player in the beauty and personal care sector.

Industry Growth and Domestic Brands Competing for Market Share

India’s beauty market is currently valued at Rs. 2,43,236 crore (US$ 28 billion) and is set to reach Rs. 2,95,358 crore (US$ 34 billion) by 2028, growing at an annual rate of 10-11%. While the organised offline beauty retail sector is growing at a slower pace, companies like Shoppers Stop are making bold strategic moves by launching exclusive stores for international brands like MAC and Clinique.

In the skincare and makeup sectors, which have seen steady growth, makeup sales have risen by 15.5% and skincare sales by 10.5%. Major players such as Reliance, Tata Group, and Hindustan Unilever (HUL) are aggressively expanding their footprint, both online and offline, to capture market share. Despite the intense competition from domestic and international brands, some beauty startups are facing challenges in scaling and achieving profitability.

Acquisitions and Consolidation in the Industry

One of the notable recent moves in the industry is HUL’s acquisition of Minimalist, a Jaipur-based beauty brand, for Rs. 2,955 crore (US$ 340.16 million). This acquisition underscores the rising importance of startups and online beauty brands as they are poised to contribute significantly to the market. Such consolidations reflect the industry’s need for brand innovation, strategic acquisitions, and expansion to meet consumer demand.

India’s Key Role in the Global Beauty Landscape

India’s beauty industry is increasingly becoming a key player in the global beauty market. With rising consumer demand and a growing preference for online shopping, India is expected to drive the future of the global beauty and personal care market. The country’s beauty e-commerce market is set to continue its rapid expansion, creating new growth opportunities for brands, retailers, and entrepreneurs across the globe.

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