India’s beauty market has always been touted to have high growth potential, but it’s now starting to show some signs of slowing down for the big international players such as L’Oréal and Estée Lauder, and the like. These major cosmetic companies are finding it tougher than ever to keep up as loads of new brands and online platforms pop up, changing people’s buying and spending preferences.
Sales Growth Comes to a Halt
The latest report in a financial daily stated that sales of these global beauty giants were affected, a massive departure from the past, where the big international beauty companies were raking in double-digit growth thanks to more and more people splurging on luxe beauty products, especially in the cities.
Crowded Market and Changing Buying Habits
According to the latest report, sales growth for global beauty giants in FY25 has more than halved compared with the previous year. L’Oréal’s growth in India slowed sharply to just 5% in FY25, down from 14% a year ago, while Estée Lauder’s growth dropped to 7%, from 19% previously.
This deceleration is a massive departure from the past when big international beauty companies were raking in double-digit growth thanks to rising consumer spending on premium beauty products, especially in urban markets.
Numbers Show a Shifting Landscape
The Indian beauty and personal care market itself is still expanding. Industry research suggests that the overall market — currently valued at about $21 billion — could grow to around $34 billion by 2028, driven by online penetration and demand for high-quality, premium products.
The proliferation of brands underscores the changing dynamics: for example, Nykaa — one of India’s largest beauty retailers — launched more than 600 Indian and global beauty brands in FY25, nearly double the 350 launched in FY24. This helped the retailer grow its business by 25% last fiscal.
Growing Market, Even Tougher Fight
Even though it’s tough going for the big international brands, the Indian beauty and personal care market is still going up at a steady pace. What’s driving that is the high demand for premium, skincare-focused and specialist products – and that’s attracting even more players to the market, both from home and abroad.
