India’s skincare market shift as new brands gain popularity
India’s skincare market is shifting as new brands gain traction with younger consumers.
INDIA – India’s skincare market is experiencing a change as emerging brands capture the attention of younger consumers, challenging the dominance of established brands.
According to the latest filings with the Registrar of Companies, brands like Forest Essentials, Colorbar, Kama Ayurveda, The Body Shop, VLCC Personal Care, and Lotus Herbals have experienced a significant drop in their growth rate in FY24.
However, new-age brands such as Minimalist and Pilgrim and international labels like Shiseido, Innisfree, and Eucerin have gained a stronger foothold in the market.
Direct-to-consumer brands like Pilgrim doubled their sales, the Minimalist experienced an 80% revenue increase, and Foxtale experienced a remarkable 500% sales surge.
L’Oréal, Nykaa, and Sephora continue to expand, recording a sales increase of 12-34%, although at a slower pace.
Korean beauty brands Axis-Y, Tirtir, and Numbuzin grew by over 60% in 2024, with specific product categories like toners, serums, moisturizers, and sunscreens witnessing double and triple-digit growth rates.
Nykaa’s sales data highlights the evolving market dynamics, with Fenty Beauty dominating lip care sales while Eucerin leads the premium derma-cosmetic serum segment.
The appeal of these newer brands lies in their ability to provide instant benefits, a significant factor for Gen Z and millennial consumers, who value transparency and active ingredients like niacinamide and peptides.
Unlike natural skin care products, these brands meet the demand for quick, effective solutions, which often take longer to show results.
Over the past two years, Nykaa has introduced over 350 brands, including local names like Foxtale and global ones like CeraVe.
Similarly, Reliance Retail’s Tira now sells nearly 1,000 labels, contributing to the growth of this segment.
According to a Nykaa-Redseer report, India’s beauty and personal care market is projected to grow from $21 billion to $34 billion by 2028.
This growth is driven by a growing preference for premium, high-quality products, and an increasing online presence.
This dynamic environment has led to heightened competition, with brands emphasizing innovation and targeted marketing to engage Gen Z, known for their informed and conscious choices.
This evolving trend highlights the shift in consumer behavior toward transparency, effectiveness, and affordability, reshaping India’s beauty and skincare industry.
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