Prestige beauty in India is expanding at nearly 16 percent annually, outpacing the broader beauty and personal care segment, according to Estée Lauder Companies (ELC). The world’s second-largest cosmetics and skincare group holds a leading position in the premium segment and is deepening its long-term commitment to India — a market it now calls central to its global growth plans.
Akhil Shrivastava, Executive Vice President and Chief Financial Officer of ELC, told Moneycontrol that India has evolved into one of the company’s most strategic markets.
“Emerging markets currently account for about 10 percent of our global business, and our goal is to increase that to 15 percent. It’s now a top four economy and the fastest-growing among the top 25,” he said. With a median age of 28 and one of the world’s fastest-growing economies, Shrivastava said India represents a long-term structural opportunity for ELC. “We went all in from the start. India was never a short-term play for us. Even after two decades, we believe we are still in the first innings of a much larger opportunity,” he added.
Over the last 20 years, Estée Lauder has steadily expanded its presence in India through partnerships with Nykaa, Tira, Shoppers Stop, and Sephora. Unlike many global peers that rely on distributors, the company operates through a wholly owned subsidiary — reflecting its intent to build a long-term, sustainable business.
Shrivastava said the company is investing aggressively in retail, marketing, and digital engagement as part of a 10-year-plus horizon strategy.
“Building the market means investing across the ecosystem — brands, retail partners, and digital innovation. We’re a leading prestige beauty player in this market, and our philosophy is simple: go where the consumer is,” he said. The company has also been testing new engagement models through quick-commerce platforms such as Zepto, alongside traditional retail and digital partners. “We’re leaning in for the next decade, not the next quarter,” he added.
The overall beauty market in India is expanding faster than GDP — growing 9–10 percent annually. Estée Lauder holds a leading share across prestige and luxury beauty categories and is now focusing on expanding access through new formats and smaller packs.
“Our hero product, Advanced Night Repair, now comes in a mini version priced at ₹1,250,” Shrivastava said. “We want to bring more consumers into the category. Once they experience the product, they tend to stay.” The company has built a “price ladder” that ranges from entry-level brand The Ordinary to mid-tier offerings such as Clinique and M·A·C, and extends to high-end labels like Kilian Paris. “The goal is to offer something for every aspirational consumer,” he said.
ELC has nine global manufacturing campuses — one in Japan, three in Europe, and five in North America (including the US and Canada) — and a wide network of third-party manufacturers, including some in India. Last Diwali, it produced a limited-edition Estée Lauder product locally for the festive market. India is also becoming an important sourcing hub, with the company now procuring over 50 raw materials from the country. “India is growing in importance within our supply chain because of its cost competitiveness and product quality,” Shrivastava said.
“While US tariffs on India-origin materials can have a marginal impact, our long-term commitment remains unchanged.” One of ELC’s most successful local partnerships has been with Forest Essentials, in which it first invested in 2008 when the brand had just two stores. Today, Forest Essentials has over 160 outlets and is widely regarded as India’s first homegrown prestige beauty brand.
As India’s beauty and personal care market continues to expand in double digits, Estée Lauder is targeting an even faster trajectory — ideally doubling its India business every four years. “The headroom is massive. We see this as a two-decade growth story,” Shrivastava said. While declining to comment on potential stake increases in Forest Essentials or new acquisitions, he said nurturing local brands through the company’s Beauty & You initiative remains a key focus.
“India’s beauty ecosystem is vibrant and full of innovation. Our goal is to empower it — not just to sell more products, but to help build the next generation of global beauty brands,” he said.
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