India's beauty sector surges as Gen Z fuels rapid market expansion

India's beauty market is experiencing a rapid expansion, with its worth estimated at $23 billion in 2025 and expected to nearly double to $40 billion by 2030, growing twice as fast as the broader economy. International players are deepening their presence: Estée Lauder fully acquired Forest Essentials, L'Oréal took a controlling interest in Innovist, and Unilever's venture arm has funded several local beauty startups. The surge is linked to higher per-capita incomes, increased digital penetration, and the influence of social-media platforms, which have turned Gen Z into the dominant consumer segment, responsible for roughly 56 % of online beauty shoppers.

Companies such as Hyphen and mCaffeine, founded during the pandemic, report 100 % revenue growth and rank among the top ten in their categories. Bollywood celebrities like Deepika Padukone and Katrina Kaif have also launched their own skincare lines, adding to the sector's appeal. Analysts predict that 10-15 Indian beauty brands will surpass $200 million in revenue within the next three to five years, likely spurring more IPOs and merger activity.