India’s beauty and personal care market saw significant shifts in 2023, with established players and new brands adapting to changing consumer preferences. Hindustan Unilever (HUL) remained the market leader, maintaining its wide portfolio that includes brands like Ponds, Lakmé, Lifebuoy, and Clinic Plus, according to Euromonitor International’s report. HUL’s extensive distribution network allowed it to reach even rural areas, a key factor in its dominance.
However, the company recognised the need to cater to younger consumers. Reportedly, it introduced new brands like Love Beauty and Planet, Acne Squad, and Find Your Happy Place. These brands were created to connect with younger demographics and address their specific preferences in beauty and personal care.
L’Oréal, another major player, gained ground by focusing on innovation. The company introduced the Absolut Repair Molecular hair care range, which targeted highly damaged hair. This product range was designed to meet the specific needs of Indian consumers, further strengthening L’Oréal’s position in the market.
Home-grown direct-to-consumer (D2C) brands also made significant progress. Mamaearth, part of Honasa Consumer Ltd, and Forest Essentials from Mountain Valley Springs Pvt Ltd grew their market share. These brands capitalised on their digital-first strategies, focusing on product innovations that appealed to younger consumers. By bypassing traditional retail channels, they built strong brand loyalty through direct communication with consumers.
While offline retail remained the dominant sales channel for beauty and personal care products in India, the report highlights the rapid growth of retail e-commerce in 2023. Platforms like Nykaa and the newly launched Tira helped drive this shift. These platforms provided international brands such as Fenty Beauty and CeraVe with access to a wider audience, giving them increased visibility. Local brands also leveraged these platforms for exclusive launches, with Akind introducing its skincare range through Tira.
The rise of e-commerce is tied to changing consumer behaviours. According to Euromonitor’s Voice of the Consumer: Beauty Survey, over 25% of Indian consumers cited online reviews as a key factor in their skincare purchases, while 61% reported using beauty apps in the past year. This reflects the growing influence of digital platforms in shaping consumer decisions.
Despite the growth of online platforms, the report emphasises the importance of an omnichannel strategy. India’s diverse consumer base requires brands to be present across both online and offline channels. Physical stores continue to play a critical role in the purchasing process. Swiss Beauty plans to double its exclusive brand outlets, and Nykaa ended 2023 with 174 stores across India. Tira is also expanding its physical presence.
India’s beauty and personal care market is becoming increasingly competitive, with established players and emerging D2C brands adapting to evolving consumer preferences. The report concludes that brands focusing on innovation and consumer engagement, both online and offline, will be well-positioned to succeed in this dynamic landscape.