16 Feb 2024
India has become one of the main growth drivers for L’Oreal and Shiseido, two of the world’s leading cosmetics companies, due to its large population and an overwhelming desire for quality beauty products.
India is the fifth largest market for L’Oreal in the professional products division. According to Omar Hajeri, President, Professional Products Division at L’Oreal, the brand has 50,000 salons in India spanning more than 400 cities. India is slated to become the third largest market for L’Oreal quite soon.
India’s beauty and personal care market (BPC) is expected to expand the fastest in comparison to the other countries of similar size, with a CAGR of 10% between 2022-2027, taking it to $30 billion. In the same period, China’s BPC market is expected to expand at 7% and Indonesia at 8%. India is expected to account for about 5% of the global market opportunity that has a per capita spending amounting to $14,far lower than $313 in the US and $38 in China. Moreover, the Indian BPC market is expanding twice as fast as the consumer goods-led brands, showcasing the importance of specialized beauty and personal care-focused brands.
In 2022, Shoppers Stop and Shiseido collaborated to bring Nars Cosmetics to India. According to Chief Financial Officer Takayuki Yokota, the brand is showing better sales in India than expected and will be a growth driver for the brand. Even for Shoppers Stop, the beauty section had the highest quarterly sales in the last quarter, accounting for 18% of the total sales. Other specialized brands, such as L’Oreal, Mamaearth, Nivea and Nykaa have a 33% share, which is expected to reach 42% by 2029, while big names like HUL and P&G that make up 66% of the market will see a drop to 58% by 2027.
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