Beauty Giants Look to Carve Up Indian Market as 'Last Bastion' of Growth

Shiseido, L'Oreal, Estee Lauder Among Those Eyeing Sector Set to Hit $5b by 2035

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CHENNAI - From Japan's Shiseido to France's L'Oreal, global cosmetics giants are doubling down on India, betting on the world's most populous nation as a key growth market for premium offerings while sales slow in developed economies.

India's luxury beauty market is expected to quintuple to US$4 billion (S$5.14 billion) by 2035 from US$800 million in 2023, driven by its young, affluent, social-media savvy shoppers with rising disposable incomes, consulting firm Kearney and luxury beauty distributor Luxasia said in a report.

Luxury beauty makes up just 4 per cent of the US$21-billion beauty and personal care market, compared with 8 per cent to 24 per cent across top South-east Asian countries and 25 per cent to 48 per cent in developed markets including China and the United States.

That means there is plenty of room for growth.

"India is the last bastion of growth for premium beauty," said Mr Sameer Jindal, managing director for investment bank Houlihan Lokey's corporate finance business in India. "The Indian consumer is willing to experiment and try out new things," he added.

US beauty giant Estee Lauder, home to brands like Clinique and MAC, expects a strong runway for expansion and long-term growth in India, even as it grapples with soft sales in the Americas and Asia-Pacific.