Mumbai: The cosmetic industry in India has witnessed significant growth in the last six months, with consumers spending over ₹5,000 crore on beauty products such as lipstick, nail polish, and eyeliner in the top 10 Indian cities. According to a study conducted by Kantar Worldpanel, more than 100 million cosmetic items were sold during this period, with 40% of purchases being made online.
This study marks Kantar Worldpanel’s first exploration of the cosmetic category in India. The findings reveal that working women, both online and offline shoppers, are major contributors to the industry’s success. These women tend to spend 1.6 times more on cosmetics compared to the average expenditure of cosmetic buyers.
“With more and more women joining the workforce, the penetration and usage of the sector is only going to improve in the future,” stated K Ramakrishnan, Managing Director, South Asia, Worldpanel Division, Kantar. “Asia is already the beauty centre of the world, with countries like South Korea setting beauty trends across the globe.”
The study highlights that the younger generation is broadening its preferences beyond traditional cosmetic products. “Indians are going beyond traditional products such as kajal and lipstick to evolved ones like primer, eye shadow, and concealers. These products are also now chosen according to special occasions and everyday wear,” said Ashutosh Valani, founder of Renee Cosmetics.
Coloured cosmetics, with an average spend of ₹1,214 over the past six months, are gaining popularity among consumers. Lip products constitute 38% of overall sales, followed by nail products. This shift indicates that Indian consumers are diversifying their beauty choices.
In terms of influencing factors, more than a third of purchases are driven by retailers’ recommendations, while an equal proportion is influenced by social media, particularly among younger consumers. The study reveals that older consumers tend to prefer lipstick and nail polish, while the younger demographic opts for products like primer and tinted lip balm.
The cosmetic industry’s growth is also evident through the success of beauty retailers. Venugopal Nair, CEO at Shoppers Stop, shared that the brand conducted over 4.5 lakh makeovers last year and more than 1.5 lakh makeovers in the current quarter alone. The personal engagement between makeup artists and customers during these makeovers is a testament to the industry’s thriving progress.
