India’s Cosmetics Market Sees Rapid Expansion Driven by Income, E-commerce, and Gen Z
Agency
August 20, 2026
Mumbai. India’s beauty and personal care market has been expanding rapidly in recent years. Due to rising incomes, expansion of e-commerce, influence of social media, and especially the changing consumption patterns of the youth (Gen Z), India’s beauty market has made a big leap
According to analysts, India’s beauty industry will be worth approximately 23 billion US dollars by 2025. By the end of this decade, its size is estimated to nearly double to 40 billion dollars. The growth rate of this industry is expected to be about double the growth rate of India’s Gross Domestic Product (GDP) and the overall retail market
The growing interest of major global companies in India’s beauty business also brightens the prospects for market expansion. US luxury cosmetics company ‘Estee Lauder’ fully acquired Indian Ayurvedic beauty brand ‘Forest Essentials’ in March this year. Subsequently, French company ‘L’Oréal’ purchased a majority stake in personal care digital company ‘Innovist’ in June. Multinational company ‘Unilever’ has also made at least four investments in India’s beauty businesses through its venture capital arm in recent years.
- Rising Income and Digital Access
Experts say that rising consumer purchasing power has also played a significant role in the expansion of India’s beauty market. According to consulting firm ‘Redseer’, India’s per capita income crossed 2 thousand dollars in 2019. After crossing this level, people’s spending on ‘non-essential’ and personal interest-related items tends to increase rapidly
By 2030, the number of households in India with an annual income of more than 9,500 US dollars is estimated to reach about 155 million. This is expected to further increase the demand for beauty and personal care products.
According to Kushal Bhatnagar, Partner at Redseer, Indian consumers spent very little on beauty products in the past. With limited income, their spending was limited to basic items like soap or face powder
However, with rising incomes, access to products, distribution systems, and information about products among consumers have also expanded. He says that the market has expanded rapidly as social media and influential digital content creators (influencers) have started reaching consumers directly
- E-commerce is Changing the Market
The role of e-commerce has become even more important in the expansion of India’s beauty market. According to Redseer, by 2030, about 35 percent of total beauty-related spending in India is expected to be through e-commerce. Five years ago, this share was only 8 percent
Businessmen say that the COVID-19 pandemic has also given new momentum to this industry. During the pandemic, as people were confined to their homes, interest in ‘self-care’ and personal health increased. During that time, digital access also expanded rapidly in India’s first, second, and third tier cities and markets
According to Vaishali Gupta, who co-founded vegan skincare company ‘Hyphen’ with Bollywood actress Kriti Sanon in 2023, Indian consumers have started gaining specific knowledge about beauty and skin care after the pandemic
Indian consumers have easily gained information through social media and the internet about what is trending in the Korean or European markets, and which ingredients help brighten the skin or control acne. She says this has created a new generation of consumers who are clear about the products they need
Gupta’s other company ‘Mcaffeine’ produces personal care items like scrubs, face wash, and lotions. According to her, the turnover of both her brands has increased by 100 percent in the last year, and double-digit growth is expected to continue in the coming days
- ‘Gen Z’ at the Center of the Market
The most significant change seen in India’s beauty market is the growing influence of ‘Generation Z’ (Gen Z). According to Gupta, Gen Z consumers are spending nearly double on skincare and personal care compared to the ‘Millennial’ generation
Data from ‘Flipkart’, one of India’s largest e-commerce platforms, also confirms this. According to the platform, 56 percent of customers buying beauty and personal care products are Gen Z. Among them, about 70 percent get information about the products they buy through social media
More importantly, data shows that two out of every three beauty-related searches on Flipkart originate from areas outside metropolitan cities. This indicates that India’s beauty market is no longer limited to big cities like Delhi, Mumbai, and Bengaluru
According to Redseer, the combined spending share of ‘Generation Z’ and ‘Generation Alpha’ on beauty products was 32 percent in 2024. This rate is estimated to reach about 50 percent by 2030
According to Priyanka Bhargava, Head of Brand Strategy at Flipkart, earlier beauty products were associated with luxury or aspiration, but now for many young Indians, it has become a part of daily ‘self-care’ and personal expression
- From Bollywood to New Startups
With the expansion of the market, popular artists from the Indian entertainment industry are also entering the beauty business. Bollywood artists like Deepika Padukone, Katrina Kaif, and Shilpa Shetty have launched their own companies or brands related to skincare and beauty in recent years
Although the number of local brands in India’s beauty market is increasing, only a few companies have been able to expand on a large scale. However, if the current growth rate continues, Bhatnagar of Redseer estimates that within the next three to five years, at least 10 to 15 beauty companies may have an annual income of more than 200 million dollars
After that, activities such as these companies entering the public stock market (issuing IPOs) and large companies acquiring small brands are also expected to intensify
According to experts, new and small brands focused on special ingredients, products based on dermatologists’ recommendations, and products focused on ‘skin nutrition’ will play an important role in the next phase of market expansion
Thus, while rising incomes and digital access are expanding the base of the beauty market in India, its most powerful engine has become the changing lifestyle and consumer culture of the new generation. Experts conclude that especially as Gen Z is transforming beauty from luxury to daily ‘self-care’ and expression of personal identity, India’s beauty industry is still in the early stages of even greater expansion
This specific news has been automatically translated by AI. As a result, there may be some inaccuracies or
language errors
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