India’s luxury beauty market is likely to touch $4 billion by 2035. With this, global beauty giants including Shiseido, Estée Lauder, and The Body Shop are exploring local manufacturing to scale operations and reduce import costs.
Japanese luxury beauty major Shiseido is evaluating local manufacturing in India as part of its growth strategy. The brand joins the likes of Estée Lauder Companies and The Body Shop. These brands are also in talks with local partners to set up or expand production in the country.
“Local manufacturing would get the company inherent advantages, including lower duties, in the rapidly expanding India market,” said Sanjay Sharma, Country Head of Shiseido Group in India. “It’s a global decision and will depend on scale, which we will evaluate.” The company currently imports its entire product range.
India’s luxury beauty market on a growth high
India’s luxury beauty market was valued at $800 million in 2023. It is now likely to soar to $4 billion by 2035, according to a report by Kearney and LuxAsia. China is experiencing economic headwinds and muted consumer spending. However, India has emerged as a promising growth destination for global beauty brands.
Over the past year, several global beauty giants, including Rare Beauty, Fenty Beauty, Anomaly by Priyanka Chopra, H&M Beauty, and Huda Beauty, have entered the Indian market. This reflects the growing appetite for premium and luxury beauty products.
Global brands seek local partnerships
Industry sources reveal that two celebrity-owned luxury beauty brands are already in discussions with Indian manufacturers for exclusive third-party partnerships, aiming to offer luxury at more accessible price points.
Estée Lauder has already taken early steps by launching India-made limited-edition products through a local partner. Its global president and CEO, Stéphane de La Faverie, confirmed a “massive investment” in India. It emphasises the importance of smaller, affordable luxury formats to cater to India’s aspirational consumers.
Similarly, The Body Shop, Kiehl’s, Avon, Kylie Cosmetics, and Max Factor, are in the process of finalising local manufacturing collaborations.
Expanding retail footprint
For Shiseido, local manufacturing would complement its retail expansion in India. Its flagship label, NARS Cosmetics, has partnered with Tira and Nykaa and opened its second standalone store in the country.
India’s moment in global beauty
As more global beauty giants turn toward India, the country’s evolving manufacturing and retail ecosystem could soon position it as a key production and innovation hub for the global beauty industry.
