Home » Products Sourcing » Beauty & Personal Care » India’s Growth in Beauty Industry: 6 Reasons for the Rise

India’s Growth in Beauty Industry: 6 Reasons for the Rise


The Indian beauty industry is experiencing a significant surge, and businesses operating in this sector are poised for remarkable growth. 

This article explores the six key reasons behind the rising success of India’s beauty market. The Indian beauty industry offers tremendous opportunities for businesses, from the cultural legacy of beauty and the localization and customization efforts to the e-commerce boom and the influence of digital influencers. 

Additionally, the convergence of technological advancements, global recognition, and export potential further propels the market’s growth. Understanding these factors is essential for companies aiming to establish a strong foothold in this thriving industry and capitalize on the immense potential it presents.

Table of Contents
The market for beauty and personal care in India
5 reasons why India’s beauty market is on the rise
Recognizing the growth in India

The market for beauty and personal care in India 

Two Indian women wearing traditional clothing and makeup

Globally, the beauty and personal care market is worth an impressive US$ 472 billion, and in India alone, the revenue in this market is projected to reach US$ 27.23 billion in 2023. With an expected compound annual growth rate of 3.38%, the market shows promising potential. 

The largest segment within the market is personal care, accounting for a significant market volume of US$ 12.59 billion in 2023. While the United States currently leads in terms of revenue generation, India’s per-person revenues of US$ 19.18 in 2023 indicate a substantial market size in relation to its population. 

Additionally, the rise of e-commerce has made a significant impact, with online sales expected to contribute 12.7% of total revenue by 2023. International beauty giants such as L’Oréal, Estée Lauder Companies (ELC), and Puig have recognized the market’s potential and have demonstrated their interest by investing in local beauty brands. 

With a thriving market, increasing online sales, and the support of major players, India’s beauty and personal care industry is poised for significant growth and offers an exciting opportunity for businesses in this sector.

5 reasons why India’s beauty market is on the rise 

The cultural legacy of beauty 

An Indian woman wearing traditional clothes and makeup

With a heritage spanning thousands of years, India has always held a deep reverence for beauty rituals and holistic wellness practices. 

This cultural influence is particularly evident in the continued popularity of Ayurveda, the ancient Indian system of medicine. Ayurvedic principles emphasize a holistic approach to beauty and well-being, incorporating natural ingredients and mindful practices. 

Today, the tradition of Ayurveda continues to inspire and influence modern beauty formulations. Ayurvedic ingredients such as turmeric, neem, and sandalwood are gaining immense popularity not only within India but also in the global beauty market. 

Their natural and skin-friendly properties make them sought-after components in a wide range of beauty products. The incorporation of these Ayurvedic ingredients adds a unique and culturally significant touch to beauty formulations, making Indian beauty products highly appealing to consumers, both domestically and internationally. 

The cultural legacy of beauty in India serves as a strong foundation for the country’s thriving beauty market, offering businesses in the industry a wealth of opportunities for growth and innovation.

Rising disposable income and changing lifestyles 

Pile of banknotes stacked on top of one another

The growth of India’s middle class and the subsequent increase in disposable income have led to a significant surge in spending on personal grooming and beauty products.

As more individuals have the means to invest in self-care, the demand for cosmetics, skincare, and haircare products has skyrocketed. Additionally, urbanization and changing lifestyles have played a crucial role in shaping consumer preferences.

With an increasing number of individuals residing in urban areas, there has been a notable shift towards beauty products that cater to the needs of city dwellers.

Indian consumers are seeking products that address specific concerns arising from urban living, such as pollution, sun damage, or aging. Businesses in the beauty industry have the opportunity to tap into this growing demand and offer innovative solutions that cater to the evolving needs of Indian consumers.

Localization and customization 

An Indian woman in traditional clothing wearing multicolored eyeshadow

International beauty brands are recognizing the importance of tailoring their products to suit Indian preferences and cater to the diverse skin tones prevalent in the country.

Localization efforts go beyond just marketing and packaging; they extend to developing formulations that address specific concerns unique to Indian consumers.

Given India’s diverse climate and environmental factors, brands are investing in research and development to create products that are suitable for the country’s varied weather conditions

Additionally, customization options have become increasingly popular, allowing consumers to personalize their beauty products to meet their individual needs and preferences. This emphasis on localization and customization showcases the industry’s commitment to providing tailored solutions that resonate with Indian consumers.

E-commerce boom and digital influencers 

A woman shopping on an e-commerce site on her phone

The proliferation of e-commerce platforms has revolutionized the accessibility of beauty products, reaching a wider audience across the country. 

Online beauty retailers offer a vast array of choices, discounts, and the convenience of doorstep delivery, making it easier than ever for consumers to explore and purchase their favorite beauty products. 

Furthermore, digital influencers and beauty bloggers have played a significant role in driving awareness and shaping consumer preferences in the Indian market. Their social media presence and engaging content have fostered a sense of trust and authenticity among their followers, influencing purchasing decisions and introducing new products and trends.

Technological advancements and innovation 

A woman wearing virtual reality goggles with an orange background

This wave of innovation is transforming the industry, with advancements such as AI-based skincare analysis, virtual try-on tools, and sustainable packaging solutions gaining significant traction. 

AI-based skincare analysis enables personalized recommendations based on individual skin types and concerns, enhancing the customer experience and product efficacy. Virtual try-on tools allow consumers to virtually test makeup and hair products, providing a seamless and interactive shopping experience. 

Furthermore, there is a growing emphasis on sustainable packaging solutions, driven by the demand for eco-friendly alternatives. These technological advancements and innovative approaches are reshaping the beauty industry landscape in India, offering businesses opportunities for collaboration and growth. 

Global recognition and export potential 

Different Indian herbs and spices in spoons

Indian brands are gaining recognition worldwide for their natural offerings, which align with the growing global demand for clean and sustainable beauty products. 

International markets are showing an increasing interest in India’s rich heritage of beauty ingredients, which have long been cherished for their skincare benefits.

This rising demand has opened up new export opportunities for Indian beauty products. Beauty trade shows and exhibitions serve as valuable platforms for Indian brands to showcase their products, network with industry professionals, and establish international collaborations. These events facilitate the exchange of knowledge, ideas, and business partnerships, further boosting the export potential of Indian beauty brands. 

Recognizing the growth in India 

A woman in traditional Indian clothing with makeup and henna

The Indian beauty industry is on a remarkable upward trajectory, driven by multiple factors that make it a highly promising market for businesses. 

The cultural legacy of beauty, localization and customization efforts, the e-commerce boom, and rising disposable income are shaping consumer preferences and creating new avenues for growth. 

Technological advancements, global recognition, and export potential further enhance the industry’s appeal and offer opportunities for collaboration and expansion. 

By recognizing and leveraging these six key reasons behind the market’s rise, businesses can position themselves for success and tap into the immense potential of the Indian beauty industry. 

Was this article helpful?

About The Author

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top