Indian luxury beauty market value to quadruple to US$4b by 2035

Economic growth, rising middle class, and luxury demand are driving market growth.

The Indian luxury beauty market is expected to grow at a compound annual rate of 14%, hitting US$1.6b by 2028 and US$4b by 2035.

According to Kearney and LUXASIA, India is one of the fastest-growing markets in Asia and globally, driven by the country’s overall economic development, a burgeoning middle class, and more luxury-conscious consumers eager to trade up.

Kearney said the Indian luxury beauty market, though smaller in proportion to its population, is following a similar high-growth path to that of China over the past 15 years.

Kearney suggested that brands consider entering the market to build brand recognition and foster consumer loyalty.

Some brands, however, struggle to enter due to India's geography and ethnic diversity, creating divided consumer preferences.

Kearny said brands must adopt region-specific strategies rather than relying on a generic approach to solve such challenges.

Kearney highlighted three strategic pillars to succeed in India: product customisation, targeted regional marketing, and omnichannel distribution optimisation through strategic partnerships.

An omnichannel approach, leveraging a nationwide sales team and deploying beauty consultants across various channels, will be crucial for rapid value creation.