India’s beauty boom goes digital, drawing global brands and investors

India’s beauty market and its fast-growing consumer base are reeling in major players in the global cosmetics industry. Multiple international brands, retailers, and investors have recently made moves to capture and strengthen their local footholds — and across the board, a trend of focusing on digitally-driven beauty has emerged. 

Japanese beauty brand Kosé says it is sharpening its focus on India as part of its global growth strategy. Meanwhile, local beauty e-commerce platform Nykaa continues to scale, flaunting strong revenue growth and the launch of a flagship boutique for Charlotte Tilbury in New Delhi.

Simultaneously, multinational giants including L’Oréal and Unilever are stepping up investments in respective Indian beauty start-ups, both of which mainly operate online.

According to the India Brand Equity Foundation, the country’s beauty industry is projected to grow from US$28 billion in 2024 to US$34 billion by 2028.

The wave of industry moves signals how India’s beauty market is increasingly viewed as a key growth lever. Rising incomes, a young consumer base, and the expansion of digital commerce are facilitating the rise.

“Promising market” for J-beauty

Kosé Corporation’s executive officer Keita Matsunami says the company is increasingly looking beyond established regions such as the US, Europe, and Japan to capture future growth. The company announced it will focus on emerging economies across the Global South, with India positioned as a priority market.

According to Matsunami, India’s rising incomes, large young population, and increasingly female workforce will drive stronger demand for skin care and cosmetics in the coming years.

“I predict that, according to the rise of GDP per capita [in India], consumption of cosmetics will increase. For example, in Mumbai, 37% of women work outside the home, and young people occupy 66% of the population. This is evidence of a promising market,” he says. 

Kosé has been gradually building its presence in the country. It first launched products tailored to Indian consumers in 2014, and last year, the company invested in Mumbai-based Foxtale Consumer, a direct-to-consumer skin care brand. The investment aims to strengthen Kosé’s local market insight and distribution strategies.

Indian beauty start-ups operating digitally-led strategies are attracting international investments.The Japanese beauty brand’s announced expansion follows closely on the heels of similar moves made earlier this month by K-beauty giants Amorepacific and APR — both of which entered the market via partnerships with Nykaa.

Innova Market Insights’ project lead for Beauty and Personal Care told Personal Care Insights that K-beauty is set to benefit from India’s “expansive Gen Z and millennial audience,” echoing Matsunami’s forecast.

However, she explained that APR and Amorepacific’s potential success in the country is likely to stem from their e-commerce partnerships. “Local platforms are indispensable when it comes to marketing brand visibility and awareness among the Indian audiences,” she told us. 

Kosé’s strategy to depend on Foxtale Consumer for its market insight and distribution may indicate whether local brand partnerships can provide the same market access that e-commerce offers international entrants.

Digital retail catapult

Indian e-commerce platforms are benefiting from international cosmetic companies entering the market. Beauty and fashion retailer Nykaa has projected its net revenue growth for Q4 FY2026 to be in the high 20% range. The figure represents its fastest expansion in three years.

The momentum highlights how online shopping platforms are playing an increasingly central role in scaling beauty consumption in India. In recent years, big brands such as Fenty Beauty and L’Oréal’s La Roche-Posay entered the market through e-commerce partnerships.

The latest in the lineup is Charlotte Tilbury. The luxury makeup brand first launched in India in 2020 through an exclusive partnership with Nykaa’s online platform. It later entered brick-and-mortar retail through Nykaa Luxe stores, and is now opening its first exclusive boutique in New Delhi.

E-commerce platforms are becoming key gateways for international beauty brands entering India.The flagship store, operated by Nykaa, underscores how omnichannel strategies help build scale, in what the makeup brand’s namesake founder Charlotte Tilbury calls “one of the world’s most dynamic and exciting beauty markets.”

A Nykaa statement further reads: “Over the past five years, the partnership has grown across distribution, retail, marketing, and brand building, with Nykaa playing a central role in establishing Charlotte Tilbury as one of the most successful global luxury beauty brands in the Indian market.”

Big league funds

International cosmetics giants wanting to strengthen their foothold in India are increasingly turning to acquisitions and investments.

French cosmetics group L’Oréal is reportedly in advanced talks to acquire a majority stake in Indian beauty start-up Innovist. The deal is valued at around ₹4,000 crore ( US$428.42 million) and would give L’Oréal control of the company, with the acquisition potentially planned in phases.

Innovist is the parent company behind brands Bare Anatomy, Chemist at Play, Sunscoop, and Vinci Botanicals. Though the brands are not exclusively sold online, they primarily operate as direct-to-consumer brands with the main sales channel being Innovist’s website.

Investment activity is also expanding through corporate venture arms. Unilever Ventures, the investment arm of Unilever, recently led a US$4.1 million Series A funding round for Clayco, a Mumbai-based skin care start-up.

The funding is intended to support Clayco’s product innovation, including its expansion into hair and body care, and to strengthen the company’s supply chain and retail footprint.

Clayco also sells through direct-to-consumer channels, Amazon, and Indian beauty platforms, including Nykaa and Tira.

The investments underscore where the money in India’s beauty boom is: online.