India is Building an $18 Billion Skincare Market

“Once reserved for lab coats and microscopes, words like niacinamide and hyaluronic acid are now dinner-table chatter.

When did skincare become common vocabulary?”

Somewhere between Instagram reels, dermatology threads, and late-night online shopping, skincare turned mainstream.

The numbers reveal that story clearly.

India’s skincare market is already sizeable.

It stood at about $8.78 billion in 2024. By 2025, it crossed $9.26 billion. By 2033, it is expected to touch nearly $18 billion.

Skincare now accounts for over 32% of India’s total cosmetics market. It is no longer just one category among many, but it is the category.

Over FY25-29, skincare is projected to grow faster than makeup, hair care, fragrance, wellness, and oral care. This is not a seasonal spike, but it is a structural shift.

This growth isn’t cyclical, but rather driven by structural changes in how consumers spend on personal care.

Discretionary spends are growing about 1.5 times faster than non-discretionary spending.

Consumers are willing to pay more, but also think more. They want products that work, feel safe, and show results over time.

The internet plays a big role here.

India is expected to have around 900 million internet users by 2025.

Product discovery is a constant, and education is instant.

A single reel can introduce a new ingredient, texture, or routine.

By 2028, roughly one-third of all beauty and personal care sales are expected to happen online.

A product like skincare thrives in such an environment.

Innovation keeps pushing the category forward, and new formats hit the market every year.

Within skincare, facial care dominates.

It holds nearly 53% of the market share. Body, sun, and other skincare products make up the rest.

Global and domestic giants like HUL, L’Oréal, and P&G still anchor the market, but the edges are getting crowded.

Skin type segmentation matters more than before.

Oily skin products alone command around 30% market share. Brands like Himalaya, Biotique, and Neutrogena have built strong positions by speaking directly to these customer needs.

Gender dynamics remain uneven.

Women account for about 85% of the skincare market. Men make up the remaining 15%.

But this gap is narrowing.

Male grooming is expected to double by 2032, growing from $2.1 billion in 2023 to $4.1 billion by 2028.

Even as new segments expand, market leadership in Indian skincare remains concentrated.

Hindustan Unilever Limited leads with a 30% market share, followed by The Himalaya Drug Company at 23.8%.

L’Oréal India holds an 8% share, while Biotique and Lotus Herbals account for 6% and 3%, respectively.

Recently, Hindustan Unilever Limited made one of the biggest moves by acquiring a 90.5% stake in premium skincare brand Minimalist for ₹2,955 crore.

Nykaa followed a similar playbook by raising its stake in Dot & Key to 90% for ₹265 crore.

These deals clearly show that scale alone is no longer enough.

Owning new-age, high-growth skincare brands is becoming central to winning India’s beauty market.

One of the most notable shifts within skincare is the rapid rise of Ayurvedic products.

It is growing at a CAGR of over 27% between 2024 and 2033.

Natural products already form a quarter of the total skincare market. About 18 million Ayurvedic skincare units were sold in 2025 alone.

Brands like Forest Essentials, Kama Ayurveda, Biotique, Patanjali, and Himalaya dominate this space.

Together, they reflect a blend of tradition, modern packaging, and ingredient-led storytelling that resonates with urban millennials and Gen Z.

But growth is not frictionless.

India has around 1,200 registered cosmetic companies.

Competition is intense.

Regulation is tightening, with over 500 notices issued in 2022 alone. Counterfeit products are rising, quietly damaging brand trust and margins.

Still, the direction remains clear.

Skincare in India is moving toward science-backed ingredients, sustainability, and personalisation.

Dermatologist-backed brands are gaining credibility. Consumers are asking sharper questions and focusing more on labels.

Skincare now sits at the intersection of rising incomes, digital distribution, and premiumisation.

And that is where long-term value is being built.

Sources:

Astute Analytica
Fortune Business Insights
Nykaa Annual Report 2024-2025
Nykaa Beauty Trends Report
Economic Diplomacy Division – GoI
Ken Research
Moneycontrol
180 degrees Consulting
Storyboard 18
Globe Newswire