With smaller packs and wider reach, Estée Lauder eyeing middle class in India, its key emerging market

“Emerging markets are very important for us as a whole, and within emerging markets, India is among our largest," de La Faverie said during his recent visit to the country.

The group recently announced an overhaul of its global strategy that involves reaching more shoppers, accelerating innovation and expanding its presence in high-growth channels, markets and price tiers.

Estée Lauder Companies, which has been present in India since 2005, largely operates in the premium beauty segment that accounts for about 10% of the country’s beauty and personal care market.

The CEO said the group, among the world’s biggest in the beauty and cosmetics industry, will target upper-middle-class households in India, with plans to use small packs as a hook to draw more shoppers.

“I’ve made it very clear that we are increasing our investment in India because we see potential. Around the world, between now to 2030, the number of consumers entering the middle class is projected to be around half a billion," de La Faverie said. “Of these, over 30% will come from India, making it the biggest contributor of consumers going into the emerging middle class. Our role is to tap into the lower-middle and higher middle class, depending on the type of brands that we bring."

In 2005, the group entered India, introducing the country to M·A·C makeup products. A lipstick from the brand can cost upwards of ₹2,500.

The multinational company’s expansion plans are multipronged. “There’s still a lot more investment to be done—in physical distribution, new brands, media and partnerships. We are increasing our investment in consumer touch points, media and manufacturing because we see the potential and the growth," de La Faverie said.

In India, Estée Lauder Companies operates through its wholly owned subsidiary ELCA Cosmetics India Pvt. Ltd that markets and wholesales its brands to retailers such as Shoppers Stop, Nykaa, Myntra and Tira. Shoppers Stop also operates specialty beauty stores in India for several of the group’s brands, including M·A·C, Estée Lauder, Bobbi Brown, Clinique, etc.

Beauty boom

According to 2025 estimates by researcher Euromonitor, India’s beauty and personal care industry was valued at $14.9 billion in 2024. Prestige beauty remains less than 10% of the overall market at $1.1 billion but is expanding much faster than mass beauty. India is among the fastest expanding beauty and personal care markets globally, having grown over 10% in 2024, driven by a 16% rise in prestige beauty.

The group sees a huge potential for this high-end segment. “Today, only around 10% of the beauty market in India is in premium beauty, compared to 40-50% in more developed markets," de La Faverie said. “The room for growth is enormous."

The speed of digital adoption has been a game-changer for the beauty and personal care market. ELCA’s partnership with online platforms such as Nykaa and Zepto have helped it reach consumers across more than 600 cities.

“It allows us to touch consumers in almost every part of the country, something quite unique compared to other markets that have gone from brick-and-mortar to digitization in a much longer period of time," the CEO added.

He, however, noted that beauty remains a business where consumers want to feel and try products, pointing to the importance of expanding offline stores. The group’s products are retailed through 375 stores in India.

India’s beauty market has accelerated with the rise of online retailers and the proliferation of both mass and premium beauty brands. Foreign brands are trying to capitalize on this growth by launching more brands and engaging top influencers to drive consumption.

Last month, Mint reported that South Korea’s top beauty company Amorepacific Group, which sells brands like Laneige, Innisfree, Etude and COSRX in India, plans to double down on its business in the country. The company looks to introduce more of its 30 global brands to India and develop products suited to Indian skin tones. It currently sells five brands in the country.

In 2023, Global SS Beauty Brands (part of Shoppers Stop) partnered with Japanese company Shiseido Asia Pacific to launch global makeup brand Nars Cosmetics in India.

In India, ELCA competes with French beauty giant L’Oréal. L’Oréal makeup brand Maybelline's lipstick prices start below ₹500.

To improve accessibility, ELCA has introduced mini variants of lipsticks and night serums—priced at roughly half the cost of full-sized products. It sells minis for brands such as M·A·C, Clinique, Estée Lauder and The Ordinary. “Minis are a key part of our strategy in India," he said. Its entry-level brand The Ordinary sells face care products starting around ₹600.

Number speak

Globally, the company has invested heavily in acquiring brands such as Tom Ford and The Ordinary, accumulating debt on its books. It also picked up a minority stake in Ayurvedic products company Forest Essentials in 2008.

The CEO said his company will continue to pursue a mix of organic and inorganic expansion. "It is important for us to reignite growth and to digest some of this debt to be able to resume with serious M&A in the future. There will be opportunities for us in India as well—with the right brand, at the right moment."

The company accelerated new launches in India in 2024, introducing three brands from its global portfolio within a 12-month period—a sharp contrast to a decade ago, when it sold only M·A·C cosmetics in India during its first three-to-four years of operations.

ELCA Cosmetics India’s revenues surged over 134% between FY20 and FY24 to ₹900 crore, according to data accessed by business intelligence platform Tofler. However, the company reported a decline in net profit for FY24 to ₹15.4 crore from ₹25.1 crore in the previous year.

In contrast, L’Oréal India’s revenue in FY25 increased 5% to ₹5,979 crore, while net profit rose 23% to ₹598 crore.

Hindustan Unilever Ltd, India’s largest fast-moving consumer goods (FMCG) company that sells brands such as Lakme, Simple, Glow & Lovely, Pond’s, Dove and Vaseline, reported revenue of ₹13,073 crore for its beauty and wellbeing division in FY25.

Earlier this year, under de La Faverie, the company announced an overhaul of its global strategy—under Beauty Reimagined—to restore sustainable sales growth and achieve a double-digit adjusted operating margin over the next few years. This includes boosting innovation, optimizing marketing programmes and eliminating low-return activities to accelerate new consumer acquisition.

For the fiscal year ended June, The Estée Lauder Companies reported net sales of about $14.33 billion, down 8.2% year-on-year.