India’s US$30 billion beauty boom grows online, bringing new opportunities and risks

India’s beauty and personal care market has surpassed US$30 billion, fueled by rising incomes, urbanization, and the boom of e-commerce and quick commerce. However, as the country’s cosmetic trade increasingly moves online, safety concerns are arising about whether oversight can keep pace. 

According to the organizers of Cosmetica 2026, set to run from June 19–21, the billion-dollar figure indicates that global beauty brands increasingly see India as fertile ground for growth.

“The global beauty industry is increasingly looking toward India not merely as a consumer market but as a strategic hub for innovation, manufacturing, and product development,” says Ceyril Perira, managing director at Triune Exhibitors Private Limited (TEPL), the official organizer of the event.

According to TEPL, premium skin care, color cosmetics, men’s grooming, and natural Ayurvedic products are among the key categories fueling the country’s cosmetics surge, and multiple business moves echo the sentiment.

Amazon India, for example, has announced it will add over 100 premium beauty brands to its offerings through 2026. The expansion will include names like Dolce & Gabbana, La Roche-Posay, and Paula’s Choice. The move combines demand for premium products and taps into the surge of e-commerce-driven beauty purchases across the country. 

With a growing Gen-Z and millennial consumer base, each geared up with rising disposable incomes, India is emerging as a strategic launchpad for new products. Tier-two and tier-three cities, such as Thrissur and Guwahati, are now driving over half of premium beauty demand, the organizers note.

Rising disposable incomes among younger generations are helping boost the Indian beauty segment.However, as international giants double down on their involvement in the country’s beauty sector, so too do operators dealing in unlicensed and counterfeit products. The rapid growth of beauty trade in India, and the monetary potential connected to it, has caused an influx of unregulated and hazardous cosmetics circulating.

Demand digitized

E-commerce and quick commerce services — such as BlinkIt, Zepto, and Swiggy, which offer 10 to 15-minute deliveries — are increasingly important in how Indians consume beauty. Personal Care Insights previously spoke with Innova Market Insights’ project lead for Beauty Personal Care & Household division, who told us that these services are “indispensable.”

“Local platforms are indispensable when it comes to marketing brand visibility and awareness among the Indian audiences,” said the Innova lead.

Multiple big-league players are joining the cacophony of brands vying for Indian shoppers’ attention, and the pattern so far indicates that those leaning into digital-first strategies are pulling ahead.

L’Oréal is reportedly acquiring Innovist, an Indian beauty house, for over US$428 million. Meanwhile, Unilever Ventures just led a US$4.1 million funding round for Clayco, a Mumbai-based skin care company. Both moves focus on start-ups selling primarily through direct-to-consumer channels and e-commerce platforms.

Moreover, social media is widening access and exposure to beauty products and trends, which, in turn, is shaping Gen Z and millennial consumers’ purchase habits. According to the Cosmetica 2026 organizers, these younger generations drive demand for clean-beauty and cruelty-free formulas.

TEPL says AI-powered personalization and virtual try-on tools are also in high demand, reinforcing Amazon India’s strategy to win in the country as it expands its offerings. According to the e-commerce giant, its premium beauty segment is growing 50% year-on-year, underpinned by tools like its AI-assistant Rufus and virtual try-on features.

India’s beauty trade is largely happening online, with e-commerce and quick commerce shopping gaining strong traction.Amazon India also has a dedicated Men’s Grooming Store, and the platform claims it holds the largest beauty shopper base in the country. 

Growth outpacing safety?

As India enjoys a booming cosmetics market, regulators are stepping in to ensure that what’s available remains safe. In a latest crackdown against harmful beauty this week, the Maharashtra FDA has seized illegal and misbranded cosmetic products worth around ₹34.61 lakh (US$36,641) across Mumbai and Satara.

Another raid in Kandivali uncovered cosmetics being manufactured without a valid license. The confiscated products lacked adequate batch numbers and labeling, carrying misleading claims. 

The moves highlight how weak national safety controls could expose millions of consumers to health risks. India has previously been identified as a contributor to the global circulation of illegal cosmetics, particularly as a middleman involved with the counterfeiting of skin-lightening creams. 

Personal Care Insights previously spoke with Michael Bender, international co-coordinator at the Zero Mercury Working Group, about the role e-commerce plays in facilitating the trade of illegal cosmetics. With so much of India’s cosmetic purchases flowing through digital environments, ensuring safety on these fronts poses unique challenges.

However, FDA commissioner Tukaram Mundhe says the department has a zero-tolerance policy toward misleading, substandard, and unlicensed products — indicating that as the country’s cosmetic industry continues to grow, so too may regulatory scrutiny.