Key Transformations Indian Gen Z Has Brought to the Beauty Market

Indian beauty brands have recently become a major attraction for global investors. In March this year, the American luxury beauty product maker Estée Lauder acquired the Indian Ayurvedic company Forest Essentials outright. In June, the French group L’Oréal took a majority stake in the digital personal care brand Innovist. Over the past few years, Unilever has invested in at least four types of beauty products in India through its ‘Venture Capital’ arm.

Forest Essentials, started by single mother and entrepreneur Meera Kulkarni from a small garage, has grown from a modest startup to a billion-dollar company with a global presence over the last two decades. This growth reflects the broad development of India’s beauty industry, which was valued at approximately $23 billion in 2025. The market size is expected to nearly double to $40 billion by the end of this decade.

Experts say that the rising spending power in Asia’s third-largest economy is driving this growth. According to business consultancy Redseer, India’s per capita income crossed $2,000 in 2019. By 2030, about 155 million households are expected to earn more than $9,500 annually.

Kushal Bhatnagar, partner at Redseer, states, “Historically, we spent less on beauty because, aside from basic products like soaps or face powders, there was no purchasing power to buy other cosmetics.” But now, increased affordability alongside improved access, distribution, and product education is changing the landscape. The internet has removed many of these barriers, allowing brands to directly connect with consumers by leveraging social networks and influencers.