Key Takeaways:
India’s beauty industry is having a moment, largely underpinned by both culture and commerce, marking a generational shift in how beauty is created, consumed, and communicated. Although Western imports once dominated India’s beauty market, the country now produces a new class of homegrown brands whose innovation, agility, and cultural fluency are setting global benchmarks.
According to The Future Laboratory and Together Group's foresight report, I-Beauty: The Next Beauty Powerhouse, India’s rise is being propelled by a convergence of macroeconomic growth, digital retail infrastructure, and consumer self-assurance. Thirty-six percent of Indian consumers now prefer local beauty brands, compared to 23% who favor imported ones, a striking reversal that reflects growing national pride and trust in domestic innovation.
Olivia Houghton, Insights Director at The Future Laboratory, described this as both an emotional and practical evolution. “The shift toward local brands in India seems to be driven by a mix of practical and emotional factors. Consumers are looking for value for money, quality, and relevance. [These are] areas where local brands thrive thanks to agility and a deep understanding of cultural nuance,” she told BeautyMatter.
This surge in domestic loyalty is supported by government initiatives such as Make in India and Vocal for Local, which have strengthened manufacturing capabilities and brand visibility. At the same time, the country’s digital commerce boom has allowed small and midsized brands to connect directly with consumers across regions, bypassing traditional retail bottlenecks.
The New Middle Class: Redefining Beauty Consumption
India’s economic landscape is shifting dramatically. The country’s remarkable growth rate of 8.4% in the third quarter of fiscal year 2024, surpassed expectations of 6.6% to 7.2%. Deloitte projected growth of 7.1% to 7.4% for the quarter, expanding the consumer base for premium and aspirational beauty products. Yet, as Houghton noted, this growth is nuanced. “Consumers will have the capacity and desire to spend on premium products beyond the basics,” she said. “But much of the spending will likely focus on affordable indulgences, including everyday essentials elevated with premium touches.”
This “hi-lo” spending pattern is redefining product strategy. Consumers may purchase mass-market skincare from Pond’s or Dove, but indulge in Ayurvedic serums from Forest Essentials or Anthi. The result is a sophisticated hybrid ecosystem where luxury and accessibility coexist, and value is defined by emotional satisfaction rather than price point.
Urbanization is one of the markers amplifying this shift. As of 2023, about one-third of India’s population lives in urban areas, a 4% increase in a decade. The exposure to omnichannel retail, both digital and physical, is accelerating brand experimentation, discovery, and aspiration.
In a country of 1.4 billion people and more than 120 languages, influence cannot be one-size-fits-all. The Future Laboratory report found that 67% of Indian consumers trust influencer recommendations more than traditional advertising, yet what qualifies as “influence” is evolving. “India isn’t one big, homogeneous crowd; it’s a mosaic of microcultures,” Houghton explained. “Traditionally, brands leaned on Bollywood or sports celebrities to reach everyone at once. But now, microculture is the new route to influence.”
The democratization of content through TikTok clones, YouTube Shorts, and Instagram Reels has amplified niche creators across regions. Beauty educators, dermatologists, and vernacular-language creators are replacing celebrities as the trusted gatekeepers of product credibility. Brands such as indē wild and Aminu are leveraging this shift by centering founders as cultural narrators rather than spokespeople, blending science, Ayurveda, and relatability in equal measure.
Climate-Adapted Beauty: Formulating for Extremes
Perhaps the most globally relevant insight from the I-beauty report is the emergence of climate-adapted beauty—a philosophy born of necessity. India’s diverse weather conditions, pollution levels, and humidity extremes are forcing innovation at the formula level. Brands like Moxie Beauty and Dove India are developing products designed for skin and hair exposed to high UV and particulate stress.
Houghton pointed out that this environmental responsiveness could become India’s next exportable edge. “India is already experiencing challenges that other regions may face in the future, like extreme heat spells. The solutions emerging here, like climate-intelligent formulations, could serve as inspiration or even be applied globally.”
The trend aligns with global consumer interest in functional beauty that protects, heals, and adapts. In many ways, I-beauty could teach the world how to formulate for resilience.
However, despite India’s impressive domestic growth, I-beauty’s international visibility remains nascent. “As a research analyst, I’m not seeing I-beauty discussed in the same way as K-beauty yet,” Houghton said candidly. “For now, its impact remains largely within India.” Rather than chasing external validation, the opportunity lies in consolidating domestic dominance. The next five years will likely see Indian brands refining their models before expanding globally, mirroring how K-beauty incubated innovation domestically before exporting it worldwide.
Segments like skincare and fragrance are poised to define this next chapter. The report forecasted India’s fragrance market to reach $3.4 billion by 2028, while skincare remains the most active category for venture and acquisition interest. These dual engines, science-backed skincare and sensory storytelling, could form the pillars of India’s eventual beauty export identity.
A Blueprint for Beauty’s Next Decade
India’s beauty evolution is not a replication of another region’s playbook but a reinvention of its own. I-beauty is built on agility, authenticity, and adaptability, and presents as an industry that blends technological innovation with ancient wisdom, global standards with local storytelling.
For global investors and multinational players, India’s beauty rise is a paradigm to learn from, not a trend to capitalize on. The combination of cultural literacy, digital infrastructure, and entrepreneurial ambition is crafting a new beauty model—one that could very well shape how the world defines value, influence, and innovation in the decade ahead.
The I-beauty revolution signals a structural realignment in the global beauty industry. It’s proof that growth and authenticity can coexist, and that cultural intelligence is the new currency of innovation. As The Future Laboratory wrote, India isn’t just responding to change; it’s initiating it. From Nykaa’s frictionless commerce to RAS’s regenerative farming, the country is exporting not just products but philosophies. I-beauty’s power lies in its ability to fuse science, spirituality, and storytelling, anchoring beauty in meaning rather than marketing.
