The Indian retail cosmetics market is worth an annual $20.64 billion, according to a report by Research and Markets.
‘India Retail Cosmetics Market Competition Forecast & Opportunities, 2029’ predicts a compound annual growth rate of 4.34% until 2029.
The report says the retail cosmetics market in India is experiencing significant growth potential, driven by factors such as the expanding middle class, urbanization, and changing consumer preferences.
This growth is further propelled by the rise of online cosmetic shopping, which offers convenience and reshapes consumer behaviour.
Both global and domestic cosmetic brands are competing for market share in various categories, including skincare, makeup, fragrances, and personal care.
The influence of global fashion trends and social media has accelerated this growth, with consumers seeking a wide range of cosmetics to emulate their favourite online personalities and explore new looks.
The impact of social media is expected to continue driving the cosmetics market in India, as beauty communities on these platforms influence trends and purchasing decisions. Beauty influencers play a significant role in endorsing products and shaping consumer preferences.
Personalization is also on the rise, with consumers seeking cosmetics tailored to their unique needs. Brands are leveraging technology, such as AI and skin analysis apps, to provide personalized recommendations and enhance the consumer experience.
The northern region of India, led by cities like Delhi and Chandigarh, holds a dominant position in the retail cosmetics market, driven by urbanization, rising disposable income, and evolving beauty preferences.
Despite growth opportunities, the industry faces challenges related to regulations and intense competition. To sustain growth, innovative marketing strategies focusing on affordability, quality, and cultural relevance are essential in this dynamic and evolving beauty landscape.
“The surge in disposable income within India is poised to propel the retail cosmetics market. As individuals experience improved economic conditions, their purchasing power for non-essential goods such as cosmetics expands. This upward income trajectory creates a larger consumer base with the capacity to invest in skincare, makeup, and personal grooming products,” said Research and Markets senior manager Laura Wood.
“As awareness about beauty grows in tandem with income levels, the cosmetics industry is well-positioned to leverage these favourable circumstances, offering a diverse product range to cater to evolving preferences and lifestyle aspirations,” she added.
Major companies present in the India retail cosmetics market listed in the report include Unilever, L'Oreal, Emami, Johnson & Johnson, Oriflame, Himalaya Wellness, Nivea, Amway India, Procter & Gamble and Lotus Herbals.