What do Procter & Gamble, L’Oréal, and Estée Lauder have in common (besides global beauty dominance)? They are all turning their eyes to a new, dynamic player: India.
The India beauty market, valued at $23.99 billion in 2024, according to Claight Corporation, is on track to surge past $66.9 billion by 2034, growing at a 10.8% CAGR. The luxury segment alone is expected to double from 2023 levels to $1.6 billion by 2028 and quintuple to $4 billion by 2025. These numbers are hard to ignore, particularly as China, the industry’s former growth crown jewel, begins to lose its luster.
With a young, digitally native population, rising incomes, and a retail ecosystem that seamlessly blends both offline and online channels, India is stepping confidently into the global spotlight. What was once an “emerging” opportunity is now a formidable growth engine, drawing bold investments and ambitious expansions from global beauty brands.
Is China losing its glow?
Once the undisputed darling of global beauty, China’s cosmetics sector is showing signs of fatigue. In June 2025, the National Bureau of Statistics of China revealed that cosmetics retail sales still fell 2.3% year-over-year, hinting at market saturation and waning momentum.
Major brands are feeling the heat. Estée Lauder is on the frontline of restructuring, approving 3,200 job cuts, with potential reductions reaching up to 7,000 roles, as sales drop in China and global travel-retail channels. CEO Stéphane de La Faverie has framed this as part of the company’s bold “Beauty Reimagined” strategy to become “leaner, faster, and more agile.”
Coty, similarly, reported Asia Pacific net revenue of $708.1 million, representing 12% of its annual sales, a decline of 8% as reported and 7% like-for-like, driven by weaker performance in both its Prestige and Consumer Beauty divisions. Executives attributed the contraction to “innovation fatigue” in color cosmetics and a pullback by regional consumers. However, CFO Laurent Mercier expressed cautious optimism, noting that the Chinese beauty market is gradually improving, thanks to stronger demand in the prestige beauty segment.
Beyond these figures, the challenges are both structural and systemic: consumer fatigue, an oversaturated market, shifting demographics, and macro pressures like tariffs and weakened travel spending. These headwinds are creating an opening for dynamic emerging markets to claim their spotlight.
India: The market everyone’s courting
While China’s market cools, the India beauty market is zooming ahead, with both local and global players snapping up the opportunity.
Beauty giants are strategically tailoring products to India’s market. Whether launching hybrid formulations for humid conditions or leveraging e-commerce partnerships and local influencers, these brands are doubling down on omnichannel expansion.
Estée Lauder is leveraging data-driven insights to tailor its offerings to India’s varied climate and regional tastes. The company is identifying emerging tier2 cities, like Siliguri, for expansion. It’s also introducing India-preferred products such as kohl eyeliners to better resonate with local consumers.
“India today, within the Estee Lauder network, is looked at as one of the priority emerging markets,” explaines country general manager Rohan Vaziralli, highlighting plans to initially target 60 million women in the nation of more than 1.4 billion.
L’Oréal India is moving full-steam ahead on digital and content-driven strategies. The company has partnered with etailers like Nykaa, Amazon and Flipkart, and crafts rich social media campaigns—led by Indian beauty influencers—to drive advocacy and conversions. Global CEO Nicolas Hieronimus has outlined an ambitious vision to more than double the French beauty giant’s India operations over the next few years. “It is a country of opportunities and one of the fastest beauty markets in the world, and is a big priority for L’Oréal,” he told journalists in June. “We are manufacturing half a billion units in India, but we intend to increase that in the years to come.”
Shiseido, long absent from the Indian beauty scene, is reengaging with the local market by bringing its NARS brand to Indian beauty retailer Nykaa’s website this year, and plans to step up growth of its brands in the subcontinent. It’s a move that mirrors the broader shift across the industry; from product innovation to omnichannel expansion, every step is clearly signaling that India’s beauty market is setting the pace for the next decade.
Five forces behind India’s beauty acceleration
A mix of demographic muscle, digital innovation, and cultural pride is propelling India’s beauty market to unprecedented heights:
1.-Demographic tailwinds and rising incomes
India’s burgeoning middle and affluent classes are significantly boosting discretionary spending. Economic growth supports both premiumization and premium skincare adoption.
2. Urbanization and tier 2–3 markets
The industry’s rapid expansion beyond major metro areas is a key lever. Brands are recognizing that local beauty needs are no longer exclusive to big cities.
3. Digital transformation
Social media, influencer marketing, and beauty platforms are reshaping the purchase journey. Nykaa’s omnichannel model and the emergence of Reliance’s beauty platform Tira echo this evolution.
4. Cultural resonance
India’s healing heritage is translating into beauty trends. Ayurvedic brands, such as Forest Essentials, Kama Ayurveda and others, are growing fast and gaining global traction.
5. Innovation and policy shift
The push toward clean beauty, ingredient transparency and tech-enabled personalization is striking for consumers. Quantum leaps in packaging, formulas, and sustainable practices are gaining momentum, supported by initiatives like “Startup India,” which offers tax benefits, easier compliance, IPR fast-tracking, and more.
The takeaway
As the beauty spotlight moves eastward, India’s beauty sector is already commanding the global narrative. Mired in regulatory headwinds and market fatigue, China’s beauty sector is showing cracks. Meanwhile, powered by a vast, complex consumer base, changing mindsets, and a tech-fueled retail ecosystem, India is accelerating. As noted in a recent Reuters report, “India is the last bastion of growth for premium beauty,” reflecting the industry-wide pivot toward this vibrant landscape.
A deeper look at the data shows just how significant the India beauty market has become. The country is preparing to account for roughly 5% of the global cosmetics market by 2025, positioning it among the top five beauty markets worldwide.
For global beauty brands, the region presents more than a sales opportunity. It’s a canvas for innovation, cultural connection, and long-term growth. With thoughtful investment and local insight, brands can help shape—and benefit from—India’s ascent in the global beauty narrative.
