There’s a general belief that India’s beauty market is still discovering its glow-up moment. But with a fresh round of international collaboration on the table, that moment may just have arrived—courtesy of the India–UK Free Trade Agreement (FTA).
India’s burgeoning beauty and cosmetics sector, estimated at ₹1,71,860 crore (US$ 20 billion), is poised for a transformation with the India–UK FTA, which is set to reduce import duties on British beauty and cosmetic products. This will not only make products more affordable for Indian consumers but also deepen the product portfolio available in the country.
In 2024 alone, India imported ₹296 crore (US$ 34.4 million) worth of cosmetics, perfumes, toiletries, and essential oils from the UK. The FTA is expected to give this figure a serious glow-up.
Read More: India's Beauty Market to Reach ₹2.95 Lakh Crore by 2028, Growing at 10-11%.
Prominent British-origin brands are already taking action. The Body Shop, long favoured by Indian consumers, plans to ramp up its imports under the new trade terms. Meanwhile, Estée Lauder Companies is likely to expand offerings of its brands Clinique and MAC Cosmetics. French luxury major LVMH (owner of Dior and Tiffany & Co.) may also leverage its British operations to widen its presence in India.
Ms. Shriti Malhotra, Executive Chairperson of Quest Retail, which markets brands such as The Body Shop, Kiehl’s, Avon, and Anastasia Beverly Hills in India, stated that the agreement will enable the firm to expand its product portfolio. She added that reduced import duties will directly benefit Indian customers while also offering an edge to homegrown “Made in India” beauty products.
India’s leading retailers are gearing up to capitalise on this opportunity. Nykaa, Reliance Tira, and Shoppers Stop are expected to gain directly from reduced import costs. Tira is a beauty vertical under Reliance Retail Limited, which is part of Reliance Industries Limited. Their platforms already feature premium beauty products, and a wider global range may soon follow.
Myntra has already begun onboarding iconic international beauty labels like Yves Saint Laurent (YSL), Laura Mercier, and TirTir. Meanwhile, Reliance Retail’s Tira has launched a premium service called Concierge, providing beauty consultations, pre-orders, and personalised recommendations.
Major e-commerce platforms such as Amazon and Myntra are set to benefit as well. With lower duties, the prices of premium products could become more competitive, appealing to the growing base of aspirational Indian consumers.
Ms. Radhika Ghai, Founder and CEO of wellness marketplace Kindlife, noted that the policy reform comes at the right time, as over 700 million young Indian consumers are now looking for globally trusted and clean beauty brands. The FTA could help meet this demand more affordably.
The entry of more global brands is expected to intensify competition in India’s premium beauty space. Well-established players like Hindustan Unilever (HUL), L’Oréal, and Procter & Gamble (P&G), which manufacture and sell beauty products in India, may need to double down on innovation and marketing to retain their edge.
Beyond the immediate price cuts, the FTA signals a new era of international collaboration in beauty retail. Indian retailers will gain from increased consumer spending, global beauty houses will access a rapidly growing market, and consumers will be spoilt for choice.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: May 9, 2025, 4:01 PM IST
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