Luxury beauty is one of the more interesting growth stories in Indian retail. Global houses are investing in the market, Indian premium labels are building their own following, and the category is still small compared with other Asian markets. This is our read on what the research says and what it means for brands.
Note: published estimates of this market differ by source and date. The figures below come from named reports, and the forecasts are forecasts.
A small base with room to grow
- Kearney and LUXASIA estimated India's luxury beauty market at about $0.8 billion in 2023 and forecast about $4.0 billion by 2035.
- Luxury is about 4% of India's beauty and personal care market, against 20–25% in Thailand, Vietnam and Malaysia and 35–50% in developed markets, per the same report.
- The report forecast roughly 14% annual growth for 2023–2028, after 12% for 2018–2023.
- In 2023, international brands held about 93% of the market. Fragrance was the largest category at 43%, followed by colour cosmetics (28%) and skincare (19%).
- Online accounted for roughly 30% of luxury beauty sales in 2023, per Kearney's estimate.
Global houses are localising
Reuters reported in August 2025 that Estée Lauder was targeting more Indian women and had partnered with designer Sabyasachi Mukherjee, L'Oréal was increasing investment, and Shoppers Stop planned to open 15–20 beauty stores a year. An adviser quoted called India "the last bastion of growth for premium beauty". In April 2026, Charlotte Tilbury opened its first standalone India store in New Delhi, run by Nykaa, according to Retail4Growth.
Indian premium labels have room to grow
The same Reuters report notes that domestic brands such as Forest Essentials and Kama Ayurveda hold under 10% of luxury beauty sales in India, against about 40% for domestic brands in East Asia. That gap is the opportunity for local premium brands.
Beauty as an entry point to luxury
A lipstick or a fragrance is a more accessible way into a luxury brand than a handbag or a couture piece. Press coverage of the Estée Lauder and Sabyasachi lipstick collaboration framed it this way. We have not found survey data on how many customers start their luxury journey with beauty, so treat this as a widely held view, not a measured fact.
What D2C and local premium brands can take from this
- Own your story: premium is built on identity, not discounting.
- Invest in the full experience, including packaging, content, service and delivery.
- Use creators and community to build desire as well as awareness.
- Plan channels together instead of treating online and offline as separate.
Sources
Kearney and LUXASIA, India's untapped growth opportunity in luxury beauty, 2024: luxasia.com
Reuters via Khaleej Times, 24 August 2025: khaleejtimes.com
Retail4Growth, 13 April 2026: retail4growth.com
The Established, 13 March 2024: theestablished.com
Where to go next
Explore our Strategic Brand & Growth Consulting , or read why creative-led growth matters for D2C brands.
