When it comes to beauty, India has a long tradition to tell. One has to go back centuries to trace the link between the Asian country and cosmetic products, whose application has been documented since the Indus valley culture. A tradition so deeply rooted that even up to the beginning of the new century, most beauty, skincare, and hair care products were primarily homemade, using herbs and locally available ingredients.
Final touches backstage at Omniverse 2022, the fashion showcase of Istituto Marangoni Mumbai's second-year students
But now that globalisation has made cosmetic products from other countries more accessible and affordable, it is not surprising that, according to Statista, revenue in the beauty & personal care Indian market will amount to 27.23 billion dollars in 2023. The market is expected to grow by 3.38% annually, with personal care being the largest segment, with a market volume of 12.59 billion dollars this year.
India’s burgeoning beauty market, with giant conglomerates and local counterparts
But what are the reasons for this trend reversal? Changing lifestyles have contributed to a significant development in the Indian cosmetic industry. The country ranked fourth globally for generating the highest revenue from the beauty and personal care market back in 2021.
Interestingly, while the cosmetics market worldwide is controlled by a handful of giant conglomerates such as L’Oréal Paris, Unilever or Procter & Gamble, also very successful in India, domestic counterparts have an equal footing, with newer, organic brands entering the market. Most of all, they could fulfil the demand for products suitable for Indian skin types.
A behind-the-scenes look at Omniverse 2022 reveals the idea behind the Istituto Marangoni Mumbai fashion show
This created a huge opportunity and opened doors for local businesses that are trending today, like MamaEarth, Kay Beauty by Katrina, Forever52 India, Swiss Beauty, Rude Cosmetics, e.l.f. Cosmetics and Skincare.
A green revolution has started in India’s beauty and personal care sector
The market has also seen a little green revolution. “I feel that in terms of skin care products, people are now switching to more organic and vegan products, but I don’t see it is the same for make-up products yet,” explained Indian stylist and graphic designer Mallika Kohli, also an Istituto Marangoni Milano alumna. “Forrest Essentials and Kama Ayurveda are the top two vegan Indian beauty brands that follow ayurvedic formulation. All their formulations are based on Ayurveda, the ancient Indian traditional Hindu system of medicine that uses a combination of diet, herbal treatment and yogic breathing to treat any form of illnesses.”
During the pandemic, India’s consumer shift to online channels fuelled direct-to-consumer brands
The COVID-19 pandemic also boosted online discovery and sales of a new generation of beauty products while physical stores were closed. Like China, India’s consumer relocation to online channels has benefited direct-to-consumer brands. According to Euromonitor International, India’s beauty and personal care market has been quite resilient, with the retail value of the market that has remained above 2019 levels during the period spanning 2020 and 2022.
A backstage moment at Omniverse 2022, the fashion showcase of second-year students from Istituto Marangoni Mumbai
An emblematic example in this scenario is the case of Nykaa, a leading cosmetic company in India with the largest share in the online beauty and personal care market. “This giant e-commerce beauty brand was founded in 2012 and has grown ever since,” Kohli said. “Falguni Nayar is the founder and CEO of the company and is one of India’s finest self-made billionaire businesswomen, which I find truly remarkable!” According to the expert, Nykka has changed how Indian customers buy beauty products in both premium and budget-friendly markets. “The craze and demand for luxury products have increased noticeably in India, and Nykka, with its global store, bridges the gap between the products and the consumers”, Kohli continued, mentioning that famous international brands like Charlotte Tilbury were also recently launched in India on Nykka.
Also, the American giant Estée Lauder collaborated with Nykaa at an awards programme for upcoming Indian beauty brands called Beauty&You.
A new guard of Indian beauty innovators has brought a fresh approach
While other international brands such as Mac, Bobbi Brown and Huda Beauty are still popular and Too Faced has just opened its first Indian physical store in New Delhi, some innovations have recently brought a fresh approach to the market.
82°E is one of the latest releases by a famous Indian actress, Deepika Padukone, and is organic, vegan, and Made in India. “The name is after 82°30’ East, the standard meridian that passes through India and shapes its relationship with the rest of the world. It is Indian in ethos and global in outlook,” Kohli explained. “Price range is a bit expensive, but all home-grown organic brands cater to the luxury market.”
Last but not least, Minimalist is another Indian skincare brand, and even though the chemicals are sourced from Germany, its price range is affordable.
But what are the hottest beauty trends to reign in India nowadays?
A lot has been done so far, but there are still many opportunities to expand this market.
So, what are the hottest beauty trends right now? “In terms of new beauty trends, there is a beautiful mix of bridal Indian make-up, which is a really heavy, over-the-top, maximal glam look, with subtle cleans nude and dewy make-up from the West,” Kohli concluded. “You can see more experimental looks, especially with vibrant eyeshadows.”