India Make-up Market Assessment, By Category, By Price Segment, By Manufacturing Process, By Gender, By End-user, By Distribution Channel, By Region, Opportunities and Forecast, FY2018-FY2032F

India make-up market is projected to witness a CAGR of 7.75% during the forecast period FY2025-FY2032, growing from USD 1.28 billion in FY2024 to USD 2.33 billion in FY2032. The market has experienced significant growth in recent years and is expected to maintain a strong pace of expansion in the coming years.

The Indian makeup market is experiencing growth due to evolving consumer preferences, rising disposable incomes, and an increased awareness of personal grooming. The influence of social media, beauty influencers, and celebrity endorsement is further fueling the market growth.

Makeup is no longer limited to urban elites; its adoption has expanded into rural, tier-2, and tier-3 cities, facilitated by e-commerce platforms such as Nykaa, Amazon, and Flipkart.

The changing beauty standards coupled with the rising millennial and Gen-Z population have made makeup a form of self-expression and empowerment. Increasing demand for more innovative and diverse products that can be customized in keeping with Indian skin tones as well as climate. Additionally, demand for organic, vegan, and cruelty-free products is rising, showing a shift towards sustainable and conscious beauty practices.

Moreover, modern retail growth, urbanization, and the proliferation of makeup academies are raising the popularity of cosmetics among both men and women. Further, strategic marketing campaigns, including celebrity collaborations, have enhanced brand visibility and consumer trust.

Furthermore, as the market matures, international and domestic players are competing to capture market share by offering premium and affordable products. With continuous product innovation and digital engagement, India makeup market is expected to grow in the coming years, which shows a dynamic and diverse sector that is transforming India's beauty and personal care landscape.

For instance, in December 2023, Hindustan Unilever Ltd. has divided its beauty and personal care business into two separate entities. This division will help the company to compete more effectively with the younger generation.

Urbanization and Retail Evolution is Propelling the Market Towards Growth

Urbanization and the growth of modern retail is expanding the growth of the India makeup market. With the rise in urban population, there is a noticeable shift in consumer behavior with greater spending power and a heightened interest in beauty and personal care products. This urban transition brings with it exposure to global beauty trends and an increasing need to emulate the grooming practices of urban elites.

The rise in modern retail in forms of shopping malls, dedicated stores for beauty and e-commerce platforms enable wider demographics and easy access of makeup products to consumers. Additionally, physical retail stores like Sephora, Nykaa stores, and local beauty outlets have become an integral part of the shopping experience which offers opportunities to consumers to explore a wide range of makeup products and brands. Additionally, the emphasis on creating an aesthetic and interactive retail space enhances the shopping experience, which helps consumers grow interested in beauty.

Moreover, the rise of e-commerce platforms such as Nykaa, Amazon and Flipkart have revolutionized the accessibility which helps the consumer across the country to purchase makeup with the need for physical store visits. These e-commerce platforms not only provide convenience but also offer personalized shopping experiences, customer reviews, and beauty tutorials, further helping to boost consumer confidence. This diversification assures consistent demand and significantly contributes to market growth.

Furthermore, urbanization and modern retail growth have boosted the India makeup market by making beauty products more accessible, affordable, and appealing to a diverse and increasingly conscious consumer base. It diversifies the market's revenue streams and assures consistent demand, considerably contributing to its growth.

For instance, in January 2024, Nykaa opened a new store in Aurangabad, Maharashtra. The store offers a wide range of beauty products from brands like Huda Beauty, Maybelline New York, The Ordinary, Nykaa Cosmetics, Kay Beauty, Dot & Key, Laneige, E.l.f. cosmetics, and Minimalist. The expansion shows Nykaa commitment for making beauty products more accessible to consumers in emerging urban centers.

Increased Penetration of E-Commerce is Acting as a Catalyst for Market Expansion

The increased e-commerce penetration is fueling the growth of the India makeup market. E-commerce is revolutionizing the way beauty products are being shopped by consumers. E-commerce platforms like Amazon, Flipkart, Myntra and Purplle have become the central places for the markup shopping experience, allowing consumers easy access to a vast range of products from both domestic and international brands.

E-commerce can reach the consumer in smaller tier cities that have restricted access to physical retail stores. Online shopping platforms have bridged the gap by allowing consumers across the country to explore a wide range of makeup products that may not be available offline. Additionally, e-commerce platforms offer convenience, enabling customers to shop at any time and from the comfort of their homes.

Moreover, the growing influence of social media and beauty influencers is further enhancing the online shopping experience. Tutorials, product reviews, and recommendations on platforms like Instagram and YouTube guide consumers in making informed purchasing decisions. These platforms also collaborate with brand loyalty through direct engagement, which helps create a personalized shopping journey.

Furthermore, e-commerce gains are capitalizing on customer data to offer targeted promotions, discounts, and personalized recommendations, which encourage repeated purchases. With enhanced logistics, fast delivery options, and customer-friendly return policies, e-commerce has become a preferred channel for makeup shopping in India.

For instance, in November 2024, Amazon India reported a substantial surge in sales within its beauty segment, with sales growing fourfold compared to the previous year. This remarkable growth shows the expanding consumer interest in beauty products and the pivotal role of online platforms in meeting this demand.

Lip Segment is Leading the Market Share

The lip segment has cemented its dominance with strong statistics in the market. Due to a combination of cultural preferences, product innovation and evolving consumer behavior. As a staple in beauty routines, lip products such as lipsticks, lip balms and glosses have become indispensable for Indian consumer which reflects both tradition and modernity.

Increased disposable income and a growing focus on personal grooming have led to the higher spending on lip product across urban and rural areas. Additionally, the influence of social media by platforms like Instagram and YouTube have popularized lip trends such as matte finishes, bold colors and ombre looks which encourages the consumer to experiment with diverse options.

Moreover, the product innovation has also fueled growth in lip segments. As brands are launching a variety of lip products including long-lasting liquid lipsticks, moisturizing balms and organic formulations which caters to a diverse range of consumer needs. Additionally, international brands and local players are offering a variety of shades which suites to Indian skin tones which further propels the market towards growth.

Furthermore, the rise of e-commerce platforms like Amazon and Flipkart has made lip products easily accessible, even in smaller tier cities. These platforms provide customers with convenience, competitive pricing and a variety of choice which ultimately drives sales.

For instance, in October 2024, Nykaa's beauty segment has demonstrated impressive growth, achieving a mid-twenties percentage increase in both net revenue and net sales value (NSV), with even higher growth in gross merchandise value (GMV). This strong performance is attributed to the effectiveness of its omnichannel retail strategy, the success of its owned brands, and the expansion of its eB2B distribution network.

East Region Dominates Make-up Market Share

Eastern region is exerting its dominance in India make-up market. Due to combination of cultural preferences, increasing urbanization and the influence of digital platforms which makes East India as a key player in the make-up industry.

Culturally, women in East India show a strong inclination to experiment with cosmetics, especially lip products. The region's preference for darker shades and bold looks distinguishes it from other parts of the country, which drives the demand for diverse makeup offerings. Additionally, festivals and traditional events in East India further amplify the need for makeup as women focus on grooming and appearance during celebrations.

Moreover, the rise of modern retail spaces and the penetration of e-commerce platforms have made makeup products more accessible to consumers in smaller tier cities. The online platforms like Amazon and Flipkart coupled with strong logistical networks ensure the availability of a variety of products. This digital shift is impactful as nearly 28% of cosmetics purchases in eastern regions is made online.

Furthermore, the affordability of domestic brands and the availability of international makeup products have created a dynamic market which caters to a broad consumer base. Also, the enhanced marketing efforts including influencer collaborations and region-specific campaigns, have also strengthened brand presence in the region. The confluence solidifies the region's leadership position in the India make-up market.

Future Market Scenario (FY2025 - FY2032F)

There is a growing inclination towards high-quality and premium beauty products among Indian consumers. This trend is particularly pronounced among millennials and Gen Z, who are more inclined to invest in grooming and personal care which is pushing the market towards growth.

Social media platforms are changing consumer preferences. Beauty influencers and content creators create trends and promote various products, raising awareness and demand for different cosmetic items.

Improvements in the product formulation and manufacturing process have led to a qualitative and performance-oriented cosmetic product. Brands are taking advantage of technology to design unique products that cater to specific consumer requirements, which will likely boost market growth.

Key Players Landscape and Outlook

Continuous innovation characterizes the landscape of India make-up market, as the companies compete to outperform one another in terms of consumer demand for natural ingredients and focus on personalization. The market prognosis remains positive, owing to urbanization and retail evolution, and increased penetration of e-commerce. Make-up manufacturers are focused on personalization, sustainability, and natural and organic products, which will likely define the industry's future. Collaborations and developing technologies are projected to increase competition in this fast-paced market.

For instance, in April 2024, Cipla Limited announced a significant strategic move through its subsidiary, Cipla Health Limited (CHL), by signing a business transfer agreement to acquire the distribution and marketing operations of Ivia Beaute Private Limited, including its brands Astaberry, Ikin, and Bhimsaini. This acquisition aims to strengthen CHL's presence in the beauty and personal care sector.