With more than a billion people, India is expected to become one of the fastest growing luxury beauty markets in the world. Unlike many other Asian and Western markets, luxury brands in India are still nascent with only about 4 per cent of the total beauty and personal care market, offering huge scope for growth. Those who enter the market now can secure decisive advantages.

China has shown the way

Having just experienced a double-digit five-year CAGR of 12 per cent per year to reach a market size of $0.8 billion in 2023, the country is expected to continue growing at 14 per cent per year - doubling its market size to $1.6 billion by 2028 and reaching $4.0 billion by 2035. In fact, India could easily see an even stronger growth trajectory than China's experience 15 years ago suggests.

FOMO of the industry

India's luxury beauty segment is poised for explosive growth. All economic and demographic indicators point to a growing hunger for luxury in the future, as the population's income is also rising accordingly. Fragrances are in the highest demand at 43 per cent, closely followed by decorative cosmetics. Now is the time for brands to take a strategic approach and enter the market with force. Many who missed out on China's growth wave may now sense their opportunity. Given that India's luxury beauty market remains under-penetrated, brands that start now can still gain an advantage.

One India, many countries

However, the challenges and complexities of India's diverse landscape mean that there is no one-size-fits-all approach. Due to its vast expanse and ethnic diversity, it is vastly different from other Asian countries. To be successful, brands need to develop a variety of regional and even city-specific strategies required for the many regions and cities in this 'land of many Indias'. Mastering the details and nuances of the three strategic pillars - product, marketing such as partnership and distribution - can make brands successful in the long run.

Source: Kearney