The new India-US FTA could lower import barriers for beauty brands, boost premium retail platforms and intensify competition as foreign players expand presence in India’s fast-growing premium beauty market.
The proposed India–US free trade agreement is expected to change the structure of India’s premium beauty market. Duty-free or reduced-duty imports may allow more American beauty brands to enter India through formal retail channels. This will specially be true for premium brands expanding globally. Retailers such as Nykaa, Reliance’s Tira and Shoppers Stop are likely to benefit as foreign brands look for strong distribution partners in the country.
Additionally, the trade deal means that imported beauty products could also become more affordable. This will lead to an increase in competition in the premium segment, especially for home-grown brands.
Growth of the Premium Beauty Segment
India’s premium beauty market’s current valuation is between $1.6 and $1.8 billion. It is further likely to grow to $3–3.2 billion by 2028.
This growth is being driven by higher disposable incomes, rising lifestyle aspirations and strong influence from social media and global beauty trends. Consumers are showing greater willingness to spend on premium skincare, makeup and personal care products.
As of now in India, MNCs such as Hindustan Unilever and L’Oréal already operate in the premium category. At the same time, Indian D2C brands like Sugar Cosmetics and Plum have also positioned themselves in this space with digital-first strategies. With more international brands coming in, the competition is bound to get fierce.
Pressure on Domestic D2C Brands
With easier access for foreign brands, competition at the premium end of the market will most likely intensify. As a result, domestic players will have to strengthen product quality, branding and differentiation to retain consumers.
Premium consumers are increasingly comparing local brands with global alternatives. The shift will pressurise Indian startups to match international benchmarks in formulation, packaging and consumer trust. With more options, consumers may opt out of domestic brands if standards are not at par.
The trade agreements are also pushing the market toward premiumisation and higher brand credibility. This may widen the gap between mass and premium beauty segments.
Retail Platforms Drive Cross-Border Expansion
Retail platforms are already seeing strong growth in cross-border beauty sales as they partner with international brands entering India.
Nykaa has sharply increased the number of brands launched on its platform. In FY25, it introduced more than 600 Indian and global beauty and personal care brands, almost double the number launched in FY24. Nearly half of these were international brands.
This strategy supported year-on-year growth of about 25 percent. Industry watchers say this reflects a clear focus on premiumisation and international brand partnerships.
Other retailers such as Tira and Shoppers Stop are also expanding their premium and imported brand portfolios to capture rising demand.
A More Competitive Beauty Landscape
The India–US trade agreement is likely to accelerate the entry of foreign brands into India’s premium beauty market. Retailers will gain from wider product selections and stronger brand collaborations.
For domestic brands, the next phase will require sharper positioning, stronger innovation, and global-level standards to stay competitive in a fast-evolving premium market.