India’s beauty industry has become an increasingly attractive target for major international cosmetics companies. Earlier this year in March, Estée Lauder completed its acquisition of Forest Essentials, a domestic ayurvedic brand, while L’Oréal secured a majority stake in digital personal care company Innovist in June. Unilever has also made multiple beauty investments in the country through its venture capital division over recent years.
The sector is experiencing substantial growth, valued at approximately $23bn in 2025 and projected to reach $40bn by the end of this decade, expanding at rates double that of the country’s overall GDP and broader retail sector. Industry analysts attribute this expansion to rising consumer purchasing power, with India’s per capita income having crossed $2,000 in 2019, a threshold associated with increased discretionary spending. Forecasts indicate that roughly 155 million households will earn more than $9,500 annually by 2030, further supporting market growth.
Digital channels are playing a transformative role, with e-commerce expected to account for approximately 35% of beauty spending by 2030, up from 8% five years earlier. Social media platforms and influencer partnerships have enabled brands to reach consumers directly and provide product education previously unavailable to many Indians. The Covid-19 pandemic accelerated this shift, coinciding with expanded digital access across urban and rural regions alike.
Generation Z consumers are driving much of this demand, spending approximately double what millennials allocate to skincare and personal care products. Data from major e-commerce platforms shows that Gen Z comprises over half of beauty and personal care shoppers, with significant purchasing originating from non-metropolitan areas. Industry projections indicate that Gen Z and Gen Alpha will increase their share of beauty spending from 32% in 2024 to approximately 50% by 2030.
Experts anticipate continued consolidation and market professionalization going forward. Analysts forecast that 10 to 15 beauty companies will achieve $200 million in annual revenue within the next three to five years, potentially leading to increased initial public offerings and merger activity in the sector.
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