India's beauty industry is expected to nearly double in size by the end of this decade<\/p>\n
India's beauty brands have been drawing a lot of interest from global capital recently.<\/p>\n
Earlier this year in March, American luxury cosmetics maker Est\u00e9e Lauder fully acquired, external the homegrown ayurvedic company Forest Essentials. France's L'Or\u00e9al Group followed in June, picking up a majority stake in digital personal care brand Innovist, external. And Unilever has made at least four beauty investments in the country through its venture capital arm in the last couple of years.<\/p>\n
Founded at the turn of the millennium in a garage in the Himalayan foothills by entrepreneur Mira Kulkarni – a single mother of two – Forest Essentials has grown from a fledgling startup into a billion-dollar company with a global presence over the last two decades.<\/p>\n
Its rise mirrors the explosive growth being witnessed of the country's beauty industry, which was valued at about $23bn (\u00a317.08bn) in 2025 but is expected to nearly double in size to $40bn by the end of this decade, growing at twice the rate of the country's GDP and the broader retail market.<\/p>\n
Rising spending power in Asia's third-largest economy is partly driving this boom, according to experts.<\/p>\n
India's per capita income crossed $2,000 in 2019, a threshold beyond which discretionary spending tends to grow exponentially, according to Redseer, a business consultancy. And by 2030, some 155 million households are expected to earn more than $9,500 annually, providing a further tailwind to growth.<\/p>\n
"Historically we've underspent on beauty because there was just no purchasing power for anything other than the very basic stuff – such as all-purpose soap or face powder," Kushal Bhatnagar, a partner at Redseer, told the BBC.<\/p>\n
"But now, along with more spending power, there is improved access, distribution and product education. The internet broke these barriers, with brands leveraging the power of social media platforms and influencers to reach consumers directly."<\/p>\n
In fact, e-commerce is expected to drive around 35% of overall beauty spending by 2030, compared with just 8% five years ago, according to Reedseer's estimates.<\/p>\n
E-commerce, rising income levels and the world's largest youth population have fuelled India's beauty boom<\/p>\n
The pandemic also proved to be a major game-changer for the industry, according to Vaishali Gupta, whose two beauty ventures have witnessed breakneck expansion since their launches during Covid.<\/p>\n
She co-founded the vegan skincare company Hyphen with Bollywood star Kriti Sanon in 2023 and also runs mCaffeine which makes scrubs, washes and lotions and calls itself India's first caffeinated personal care brand.<\/p>\n
"Covid pushed people inward and toward self-care, and it coincided with a massive wave of digital penetration tier-one, tier-two and tier-three towns. Suddenly Indian consumers had access to beauty and skincare education they'd never had before – such as what was trending in Korea or Europe, or what specific ingredients could do for brightening or acne control," Gupta told the BBC.<\/p>\n
"That knowledge base created a consumer who knew exactly what they wanted. And that's really where the boom in Indian skincare began."<\/p>\n