International Beauty Brands in India's Cosmetic Market

In a world where India has been deemed a haven for ayurveda, natural and home remedies for skincare, and cosmetics, the Indian population is strongly allured to the Western world of cosmetics. India, with its rich cultural heritage and diverse population, is swiftly turning to the global beauty market for their needs. The Indian beauty and cosmetics market was valued at approximately $15.6 billion in 2022 and is expected to grow to around $17.4 billion by 2025. (Source: Indian Mirror). The market is experiencing a steady growth rate with a compound annual growth rate (CAGR) of 6.7% projected over the next few years. (Source: Expert Market Research). Subsequently, as of 2023, it is estimated that global or Western brands account for about 20-25% of the Indian beauty and personal care market. This change is driven by a variety of factors that reflect changing lifestyles, aspirations, and access to such products through companies like Theocles.

As the quest for flawless skin and impeccable beauty standards intensifies, global brands are setting new benchmarks with their progressive formulations and innovative ingredients, offering a new level of excellence that local competitors strive to match. This yearning for superior quality is often not satisfied by Indian competitors despite having laws such as the Indian Drugs and Cosmetics Act in place.

A survey by Euromonitor International found that Indian consumers associate global beauty brands with advanced technology and high efficacy in skincare and cosmetics. Indian Consumers often correlate foreign brands with better ingredients, ingenious formulations, and rigorous testing standards. Additionally, they introduce innovative packaging and unique product offerings that appeal to a wide range of discerning Indian consumers who are looking for more than just basic.

Considering the urge to consume luxury products has increased, it is worth noting that India is going through a dynamic shift as more and more people fit into the middle-class umbrella. International cosmetics brands are often seen as luxury items and status symbols in India. A KPMG report indicates that the aspirational value attached to high-end global brands drives consumer interest, particularly among the younger, urban demographic. Hence the demand for luxury and premium cosmetic products escalated. The fact that about 42.7% of India’s population is under 25 and the median age of the Indian population is 28, making it one of the youngest countries, facilitates having such a large cosmetic market (Source: Cosmetic Design Europe & Pew Research Center). Undoubtedly, the luxury beauty market in India has been expanding rapidly, with international brands leading in this segment due to their premium positioning.

By now it is clear that a majority of the Indian cosmetic industry is ruled by young consumers. The younger demographic is indeed tech-savvy as they are rooted in the digital world using all the access e-commerce brings. However, their decisions are also swayed by social media influencers and Bollywood celebs on platforms such as Instagram, TikTok, and YouTube, playing a crucial role in shaping consumer preferences. Influencer marketing has become a powerful tool for beauty brands, helping them reach and engage with the Indian audience. Indian consumers are now more connected than ever to global beauty influencers and trends. Beauty bloggers, vloggers, and makeup artists from around the world have a massive following in India, and their recommendations often impact purchasing decisions.

For example, the "K-Beauty" trend, which originated in South Korea, has taken the Indian market by storm. Indian consumers are drawn to Korean skincare routines, which emphasize gentle, layered care and the use of unique ingredients like snail mucin and ginseng. Similarly, Western makeup brands like Fenty Beauty, Huda Beauty, and MAC have become household names, thanks in part to their prominence on social media.

Lastly, Indian consumers are becoming more and more aware of the variety of products available in the global beauty market. While local brands may dominate the shelves, Indian consumers are finding themselves craving more variety, turning to international cosmetics brands to fill the gaps. The global players offer a dazzling array of products—ranging from niche skincare solutions to bold makeup lines—that cater to every unique need and desire, making them the go-to choice for those seeking something beyond the ordinary. Many Indian consumers feel that local brands often don't offer products that cater to the diverse skin tones, undertones, and textures found across the country. For example, foundations and concealers from local brands may not have the shade range needed to suit darker or medium skin tones, leading consumers to seek out international brands like Fenty Beauty or MAC, known for their extensive shade ranges and undertones. Additionally, local brands historically offered more generic skincare solutions, whereas global brands provide a variety of specialized products. For example, consumers interested in products with active ingredients like retinol, hyaluronic acid, or vitamin C often turn to international brands such as The Ordinary, La Roche-Posay, or Neutrogena. Online shopping platforms like Nykaa, Amazon, and Sephora India have made it easier for consumers to access global brands that were previously unavailable or difficult to find. The ability to compare prices, read reviews, and have products delivered to their doorstep has made it convenient for Indian consumers to explore and invest in international cosmetics.

In any case, the love affair between Indian consumers and international cosmetics brands is a testament to the evolving beauty landscape in India. The growing preference for international cosmetics among Indian consumers is a reflection of broader changes in the country's socio-economic landscape. With increased exposure to global trends, higher purchasing power, and a desire for quality and luxury, Indian consumers are now embracing international beauty products like never before. Nonetheless, as this trend continues to evolve, it will undoubtedly shape the future of the beauty industry in India, making it a key market for global cosmetics brands.