India’s beauty and personal care market has become a significant growth driver for global cosmetics giants L’Oreal and Shiseido. The expansion is projected to be rapid, with a compounded annual growth rate of 10% between 2022 and 2027. This growth is expected to take the market value to $30 billion, making it the fastest-growing market among comparable countries by size. The country’s young and diverse population, coupled with a growing appetite for new and innovative beauty products, has contributed to this growth.
L’Oreal, one of the world’s largest cosmetics companies, has recognized India’s potential and has already established a strong presence in the country. India is currently L’Oreal’s fifth-largest market in the professional products division, which primarily sells products to salons. With 50,000 salons covering 400 cities out of 800, L’Oreal sees untapped potential for further expansion across the country. The company believes that India will soon become one of its top three markets worldwide.
Shiseido, another global cosmetics giant, has partnered with Indian retailer Shoppers Stop to bring its premium beauty brand Nars Cosmetics to India. This partnership has exceeded early sales expectations, indicating the strong demand for high-quality beauty products in the Indian market. Shiseido sees India as a growth driver and aims to expand its presence in the Asia-Pacific region.
The beauty and personal care market in India is also witnessing a shift in market share. Focused beauty brands, including L’Oreal, Mamaearth, Nivea, and Nykaa, currently hold a 33% share, which is expected to expand to 42% in the next five years. On the other hand, established firms such as Hindustan Unilever Limited (HUL) and Procter & Gamble, which currently account for two-thirds of the market, are projected to see their share fall to 58% by 2027.
RTM Watch’s Take
India’s emergence as a key growth driver for global cosmetics giants L’Oreal and Shiseido is a testament to the country’s growing beauty market and consumer demand. With a young and beauty-conscious population, India presents immense opportunities for these companies to expand their market presence. As the beauty and personal care market continues to grow, it is crucial for brands to understand and cater to the evolving needs and preferences of Indian consumers. By leveraging their well-established local footprints and focusing on specialised beauty and personal care products, L’Oreal and Shiseido are well-positioned to capitalise on India’s growth potential.
