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Have you noticed how beauty counters in Indian malls suddenly look a little more… global?
The same serums that once had to be hunted down on a trip abroad or begged from a cousin in London are now sitting right next to Lakmé and Forest Essentials. From Fenty to Rare Beauty to Huda, it feels like the whole world has arrived but the twist is, the next time you pick up a luxury foundation or perfume, it might actually be made in India.
Because something big is happening behind those store shelves. Global beauty giants like Japan’s Shiseido, America’s Estée Lauder, and the UK’s The Body Shop are quietly setting up talks, teams, and partnerships to manufacture their products right here. Not just for show, but because India, it turns out, is becoming the world’s most promising beauty market.
Just two years ago, India’s luxury beauty segment was worth about $800 million; not small, but not huge either. Now, the market is projected to grow fivefold to $4 billion by 2035. In an industry where even a few percentage points of growth make headlines, that number has the global CEOs of every cosmetics major sitting up straighter in their boardrooms.
It helps that the rest of the world isn’t exactly glowing.
China’s beauty demand has slowed. The US and Europe are battling inflation and cost fatigue. Meanwhile, India’s story is only getting brighter with millions of young, digital-first consumers are spending more, exploring more, and expecting global quality at prices that don’t sting. And that’s exactly where the opportunity lies.
For years, most luxury cosmetics sold in India were imported. The taxes alone; 20% import duty, 18% GST, and another 10% surcharge made them significantly pricier. Local manufacturing changes that math entirely. Brands save money on duties and logistics, consumers get better access and (hopefully) friendlier prices, and India gains jobs, investment, and bragging rights as a beauty manufacturing base.
Shiseido, for example, currently imports its entire range into India. But the company’s local head has confirmed that they’re evaluating starting production here once scale allows. For them, this is not just about saving costs, it’s about proximity to a fast-growing market and building products more suited to Indian consumers. The company already has 11 factories across Japan, China, Taiwan, and the US, and India could soon join that map.
Shiseido is a Japanese multinational beauty company founded in 1872 as Japan's first Western-style pharmacy
Estée Lauder, which owns Mac, Bobbi Brown, and Clinique, is a step ahead. It’s already released a few limited-edition products made in India through third-party partners. Its global CEO recently called India one of their “winning strategies” and you can see why.
The company is experimenting with smaller packaging, more accessible price points, and Indian collaborations that merge luxury with affordability. Even The Body Shop, known for its ethical sourcing, now produces India-specific ranges domestically.
An American cosmetics executive recently admitted that their brand’s first locally made lip colours and foundations were sold during Diwali; priced 25% lower than imported versions. For shoppers who love premium beauty but hate the markup, that’s big news.
But this is not just about imports and exports. What’s really driving the momentum is the kind of consumer that’s emerged in post-pandemic India. Confident, aspirational, and exposed to global trends through social media. They might not be buying ₹10,000 serums every month, but they are willing to invest in products that make them feel global.
That mindset shift is priceless for brands.
The numbers reflect it too. India’s overall luxury market is growing faster than almost anywhere else in the world. The country is now among the top five emerging markets for luxury goods, and beauty is leading that charge. Interestingly, it’s not just big cities driving this — smaller towns are showing strong growth thanks to e-commerce and influencer-driven awareness. Platforms like Nykaa, Tira, and Myntra have bridged access gaps faster than traditional retail ever could.
So when these global brands look at India, they’re not seeing just Delhi or Mumbai. They’re seeing a billion-strong market where Tier 2 and Tier 3 consumers are discovering Fenty foundations on Instagram Reels and adding them to cart during festive sales. Manufacturing locally helps serve this audience better with faster restocks, region-specific shades, climate-friendly formulations, and pricing that doesn’t rely on air freight and customs duties.
For the government, this couldn’t come at a better time. “Make in India” and PLI (Production Linked Incentive) schemes are already nudging global manufacturers to localise value chains. If beauty giants begin setting up shop here, they bring not just jobs and taxes but also global quality standards, R&D, and supply-chain sophistication.
India’s packaging, chemical, and logistics industries all stand to benefit.
Of course, this story isn’t without a few smudges. Luxury beauty is still a niche. Only a fraction of Indians can afford $40 fragrances or $50 moisturisers. Local production doesn’t automatically make these products cheap; the brand positioning must remain “premium.” Then there are operational hurdles: finding reliable suppliers, navigating India’s regulatory frameworks, and maintaining international standards of quality and safety.
There’s also the delicate balance of brand perception. For decades, “Made in France” or “Made in Japan” has been part of a luxury brand’s mystique. Will “Made in India” fit seamlessly into that identity? Possibly, if India positions itself as a premium manufacturing base known for quality; much like South Korea did for skincare. That’s the long-term game.
Yet, even with those challenges, the direction is clear. For global beauty giants, India is no longer a test market. It’s the next production and innovation hub. Many of them are already mapping out long-term plans: expanding physical retail stores, collaborating with Indian celebrities, experimenting with homegrown ingredients, and even launching India-exclusive products.
For consumers, that means more choice and better access. Imagine walking into a Nykaa store and finding a high-end serum from Nars or MAC with a “Made in India” tag; same quality, lower price, and no months-long wait for imports. For smaller Indian brands, it’s both an opportunity and competition. The bar for quality and brand storytelling will rise, but so will collaborations and partnerships with global players who want to co-create locally relevant lines.
Ultimately, this shift is part of a bigger global reordering. With the US and Europe seeing slower growth and China losing its shine, India is stepping into the spotlight; not just as a consumer market but as a production powerhouse. The world’s supply chains are being rebalanced, and India’s beauty industry has a front-row seat in that transformation.
So the next time you swipe on that lipstick or spritz on that perfume, remember: you’re not just buying a product. You’re buying into a new chapter of India’s story; where beauty isn’t just imported; it’s created here. The country that once exported yoga and Ayurveda as its wellness icons is now exporting modern beauty confidence to the world.
And as strange as it sounds, that little “Made in India” mark on your luxury bottle might just become the most beautiful thing about it.
FAQs
Why are global beauty brands manufacturing in India?
Global beauty brands like Shiseido, Estée Lauder, and The Body Shop are shifting to local manufacturing in India to save on import duties, reduce logistics costs, and cater faster to a growing consumer base. India offers strong demand, skilled labour, and policy support under “Make in India,” making it an attractive hub for production.
How big is India’s luxury beauty market expected to be?
India’s luxury beauty market is projected to reach around $4 billion by 2035, growing from approximately $800 million in 2023. The surge is driven by rising disposable incomes, digital awareness, and aspirational spending among young consumers across urban and semi-urban regions.
Which international beauty brands plan to make products in India?
Several global brands are exploring manufacturing in India, including Japan’s Shiseido, Estée Lauder (owner of MAC and Clinique), and The Body Shop. Many celebrity-led brands like Fenty Beauty, Rare Beauty, and Huda Beauty are also expanding their presence through Indian partnerships.
What advantages do beauty brands get from producing in India?
Producing locally helps beauty companies avoid high import duties, speed up supply chains, and customise products for Indian consumers. It also allows them to price more competitively while maintaining global quality standards.
How does local manufacturing benefit Indian consumers?
Indian consumers benefit from faster product availability, better pricing, and more variety. Local manufacturing also means brands can develop formulations tailored to Indian skin tones, climate, and preferences.
How are government policies supporting beauty manufacturing in India?
Government initiatives like “Make in India” and Production Linked Incentive (PLI) schemes are encouraging global brands to set up manufacturing plants. These policies offer financial incentives and create a supportive ecosystem for beauty and personal care production.
Are luxury beauty products becoming more affordable in India?
While luxury will always carry a premium tag, local production is helping brands introduce smaller, affordable pack sizes and region-specific product lines. Some items made in India are already priced up to 25% lower than imported ones.
How is e-commerce helping luxury beauty grow in India?
Online platforms like Nykaa, Tira, and Myntra have expanded access to premium brands beyond metros. They help global companies reach Tier 2 and Tier 3 cities quickly through online launches, digital campaigns, and influencer marketing.
What challenges do global brands face in manufacturing beauty products in India?
Challenges include ensuring consistent product quality, meeting India’s regulatory standards, managing supply chains, and maintaining the global “luxury” image. Adapting to diverse Indian markets also requires careful localisation.
What does the rise of local beauty manufacturing mean for India’s economy?
It signals India’s evolution from a consumption-driven beauty market to a global production hub. Local manufacturing creates jobs, boosts exports, attracts investment, and strengthens India’s reputation in the global beauty and personal care industry.
