Why premium beauty in is in its glow up era

In the last few years, Indian consumers have been growing more and more enamoured by premium beauty brands like Huda Beauty, Charlotte Tilbury, Fenty Beauty, Anomaly, 82°E and Kylie Cosmetics.

With consumers paying more attention towards self-care and personal grooming, they are willing to invest in high-quality beauty products, leading to the growth of premium segments within the industry.

The Nykaa Beauty Trend Report 2024 also points to the rise in premium beauty consumption driving a seismic shift in the beauty industry propelled by rising aspirations and higher incomes among Indian consumers. The premium beauty market is further expected to reach $3-3.2 billion by 2028.

The influx of international and homegrown makeup brands reflects not only increasing demands but also the growing connections of consumers with these labels, says Sanjali Giri, Chief Business Officer, House of Beauty.

But, how do we know whether this trend is game-changing or simply skin-deep?

Anastasia Beverly Hills has noticed their high-priced products like eyeshadow palettes and complexion ranges have seen massive demand in the last 2 years. The brand’s Norvina collection is exclusive to Sephora and that still stays as their top-selling range across India.

“Lip products, in particular, are seeing a surge in popularity. The craze dates back to 2015, when Kylie Jenner’s debut Lip Kit sold out in under a minute, revolutionising the beauty industry,” said Giri.

Why is this trend shaping up?

The shift towards premiumisation is fuelled by increased access to global luxury beauty brands, a broader range of beauty products, and innovations across various categories. The value share of premium skincare brands grew from 67% to 75% between 2022 and 2023.

The rise of e-commerce has made premium beauty products more accessible to consumers across India. Brands that were once available only in metropolitan cities are now just a click away. E-commerce platforms have also allowed niche and international brands to enter the Indian market, offering consumers a wide range of premium options.

The beauty sector is being driven by a growing consumer desire for high-quality, effective, and sustainable products, opines Mini Sood Banerjee, Assistant Director and Head of Marketing, Amorepacific India. “With Laneige and Innisfree, we have seen customers seeking more than just a regular skincare product. They want a holistic experience with high-quality ingredients that provide real-time results.”

The younger generation, driven by the “quality-over-quantity” principle, has been contributing to the growth and retention of premium-quality products.

Medhavi Nain, Head of Marketing, Prestige Brands, House of Beauty (who handles Kylie Cosmetics, Anastasia Beverly Hills and more) said, “The trend of premiumization in the beauty sector is deeply intertwined with the evolving aspirations of consumers. With the rise in disposable incomes, beauty continues to be seen as an essential facet of self-care. There’s a clear shift towards premium beauty products that promise superior quality and efficacy.”

While inflation in 2023 created a more conscious spending environment, experts suggest it didn’t dampen consumer interest in beauty. Instead, beauty buyers are optimising their purchases, often trading down in one category to afford premium products in another, she shared. This behaviour reflects the growing understanding among consumers that skincare and beauty are long-term investments for their well-being and lifestyle.

Nain added, “Today’s well-informed consumers demand high-performance ingredients aiming at targeted solutions. For instance, makeup infused with skincare properties, which is leading to constant innovation amongst the beauty brands.”