India’s luxury beauty market is expected to quintuple to $4 billion by 2035 from $800 million in 2023, according to Reuters.
Major U.S. beauty products companies like Estee Lauder and E.L.F. Beauty could be turning their attention to India amid weakness in developed markets. A new Reuters report on Thursday detailed how global brands from Estee Lauder to France’s L’Oreal are targeting Indian consumers, especially for their premium range.
Estee Lauder’s general manager for India, Rohan Vaziralli, said that India is one of the firm’s “priority emerging markets” and he expects long-term growth in the country.
The company, which sells products under MAC, Clinique, and Bobbi Brown labels, has invested in local ayurvedic beauty products brand Forest Essentials, and is separately launching custom-branded products for local consumers.
India’s luxury beauty market is expected to quintuple to $4 billion by 2035 from $800 million in 2023, Reuters reported, quoting a forecast from consulting firm Kearney and luxury beauty distributor LUXASIA.
Luxury products make up only 4% of the local beauty and personal care market, compared with 8% to 24% across top Southeast Asian countries and 25% to 48% in developed markets, signaling room for growth.
India’s young, affluent, social-media savvy shoppers with rising disposable incomes are driving growth in the premium space, the report noted. Globally, India ranks number one in terms of population and second in terms of Internet users.
E.L.F. Beauty, known for its affordable and cruelty-free cosmetic products, stated last year that India is one of its focus markets for its next stage of expansion, alongside Italy and the U.K. The company’s products are available at Nykaa, among other Indian multi-brand stores.
On Stocktwits, the retail sentiment was ‘extremely bullish’ for Estee Lauder and ‘bearish’ for E.L.F. Beauty. Their shares are up 15.5% and down 4%, respectively, year-to-date.
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