India’s beauty market is getting crowded, and the pressure is beginning to show on some of the world’s biggest cosmetic companies. Global majors such as L’Oréal and Estée Lauder have reported a sharp slowdown in sales growth in India, as aggressive new-age brands and a rapidly evolving online ecosystem reshape consumer behaviour.
L’Oréal India’s sales growth dropped to 5 percent in FY25, less than half of the 14 percent it recorded the previous year. Estée Lauder, which operates in the country through Elca Cosmetics, saw growth slow to 7 percent, down from 19 percent in FY24. The strain was also visible at Quest Retail, the Indian partner for The Body Shop and Kiehl’s, which reported a 6 percent decline in sales in FY25 after posting similar growth a year earlier.
Industry executives point to intensifying competition and a shift in where and how consumers shop. Online-first brands and digitally savvy global entrants are increasingly winning customers through sharp pricing, frequent launches and heavy promotional activity. This has weakened the long-standing advantage of established players built around physical distribution and brand legacy.
“Growth in beauty is now skewed toward brands that are more aggressive on promotions and customer acquisition,” said Biju Kassim, CEO, beauty at Shoppers Stop, which manages labels such as Shiseido and Bobbi Brown in India. According to him, the momentum is clearly shifting toward D2C brands and newer international names, leading to market share erosion for incumbents.
India’s beauty and personal care market is still on a strong growth path. A joint report by Nykaa and Redseer Consulting estimates the market will expand from $21 billion currently to $34 billion by 2028, driven by rising online penetration and growing demand for premium products.
The boom has also led to an explosion of brand launches. In FY25 alone, Nykaa onboarded over 600 Indian and global beauty brands, almost double the number added the previous year. The strategy helped the platform deliver 25 percent growth last fiscal, underlining how distribution power is increasingly shifting toward digital marketplaces.
