Cosmetics giants L'Oreal and Shiseido have identified India as a significant growth driver, attributing the trend to the country's growing population and increasing interest in beauty products. L'Oreal, already ranking India as its fifth-largest market in the professional products division, anticipates India becoming its third-largest market globally soon. The country's expanding beauty and personal care market, projected to achieve a 10% compound annual growth rate between 2022 and 2027, is set to reach $30 billion.
Omar Hajeri, President of the Professional Products Division at L'Oreal, highlighted India's untapped potential, with 50,000 salons covering 400 cities and catering to a rapidly growing middle class. The country's beauty and personal care market is outpacing fast-moving consumer goods-led brands, with specialized beauty-focused players gaining prominence.
Shiseido's partnership with Shoppers Stop to introduce its premium beauty brand Nars Cosmetics in India has exceeded sales expectations. The beauty segment accounted for 18% of Shoppers Stop's overall sales, signaling the increasing influence of specialized beauty brands. The Redseer Strategy Consultants and Peak XV report suggests that focused beauty brands are expected to expand their market share from 33% to 42% in the next five years, while established firms like Hindustan Unilever Limited (HUL) and Procter & Gamble may see a decline to 58% by 2027.
As India's beauty market thrives, both global and local players are strategically positioning themselves to tap into the country's burgeoning demand for sophisticated beauty products and routines