India is fast emerging as the world’s next beauty manufacturing hub, attracting global cosmetics giants eager to tap into a market projected to quadruple over the next decade. Japanese luxury skincare and cosmetics company Shiseido is the latest to confirm plans to manufacture in India as it scales operations, joining peers Estée Lauder and The Body Shop, which are in advanced talks with local partners to produce domestically.
“Local manufacturing offers inherent advantages, including lower duties and faster access to consumers,” said Sanjay Sharma, country head of Shiseido India. The company, which currently imports its entire portfolio, said the move is part of a long-term global plan contingent on business scale.
According to a joint report by Kearney and LuxAsia, India’s luxury beauty market—currently valued at $800 million—is expected to reach $4 billion by 2035, driven by rising incomes, urbanization, and aspirational consumption. With China’s luxury demand slowing, India is fast becoming the next big growth story for global beauty brands.
In recent months, high-end and celebrity-led labels such as Rare Beauty, Fenty Beauty, Anomaly, H&M Beauty, and Huda Beauty have made their India debut. Executives at import firms say at least two more celebrity-owned brands are scouting exclusive Indian manufacturing partners to produce locally at mid-tier price points.
Estée Lauder, which operates nine global production sites, has already rolled out limited-edition products made in India through a third-party partner. Its CEO Stéphane de La Faverie recently confirmed “massive investments” in India, highlighting strategies like smaller pack sizes and affordable luxury offerings to appeal to a broader base of consumers.
With import duties currently totaling nearly 48%, local manufacturing is becoming not just an efficiency move but a competitive necessity. As global beauty giants invest, India is fast cementing its status as the next powerhouse in global cosmetics production.
