AI, clean beauty, and sustainability set to redefine India’s beauty market in 2025, say insiders
India’s beauty industry is undergoing a transformative shift, propelled by technology, sustainability, and evolving consumer preferences. The Skincare Industry size in India reached USD 2,933.7 million in 2023. Over the forecast period, skincare demand in India is anticipated to rise at 14.6 per cent CAGR. The industry is predicted to increase from USD 3,310.5 million in 2024 to USD 12,934.2 million in 2034.
As the sector gears up for 2025, experts highlight key trends that will shape the future—from AI-powered skincare solutions to clean beauty and hyper-personalization.
Personalised and Tech-Enabled Beauty on the Rise
Siddharth Bhagat, Director, Fashion and Beauty, Amazon India, underscores the role of technology in reshaping consumer experiences.
“As we approach 2025, India’s beauty landscape is evolving rapidly, blending traditional wisdom with cutting-edge innovation. At Amazon Beauty, we are seeing a surge in demand for personalised skincare and tech-enabled beauty solutions. To meet these trends, we have launched Global Beauty Store and Derma Store, offering a wide range of local and international brands. Our AI-powered tools like Skincare Analyser are helping customers discover products tailored to their unique needs, empowering Indian consumers to confidently explore and express their personal beauty preferences with the convenience of fast delivery.”
With digital adoption accelerating, beauty e-commerce platforms are investing in AI-driven tools and AR technology, allowing consumers to find the perfect products suited to their skin type and lifestyle.
Responsible Beauty, Inclusivity, and AI Integration
Manjari Singhal, Head of Business, FMCG and General Merchandise at Flipkart, points out that responsible beauty, inclusivity, and beauty tech will dominate the Indian market.
“The contemporary beauty landscape in India is constantly evolving, driven by significant trends such as responsible beauty, the rise of beauty tech, and inclusivity. Customers are increasingly adopting derma ingredients with more education & information driven in this space by influencers and brands. AR and AI are making personalised beauty experiences accessible, while inclusivity is now a necessary offering rather than an aspiration.”
Ecommerce platforms and quick commerce services like Flipkart, Zepto, Blinkit, and Swiggy are making high-quality beauty products more accessible, catering to the fast-paced lifestyle of Gen Z and Millennials.
The Rise of Indian Brands and the Digital-First Approach
Indian beauty brands are poised to take center stage, leveraging cultural insights and agility in innovation.
“Indian brands will play a critical role in shaping the future of beauty, leveraging their agility and cultural insights,” adds Singhal. “Direct-to-consumer (D2C) brands are leading with ingredient-focused solutions, and emerging categories in health, wellness, and niche markets are gaining traction. Flipkart is actively enabling these brands to connect with diverse audiences across geographies.”
With Nykaa, Amazon, and Flipkart leading the e-commerce beauty segment, digital-first strategies—including influencer collaborations and AR-enabled try-ons—are becoming vital for consumer engagement.
Skincare, Haircare, and Fragrance: Emerging Growth Segments
Shaily Mehrotra, CEO and Co-founder of Fixderma India, highlights the shift in consumer preferences towards clinically backed skincare, haircare innovations, and fragrance trends.
“Affordable and effective skincare products are driving mass beauty growth, while the premium skincare segment is growing faster due to the demand for results-driven solutions. Dermatologist-recommended products, barrier repair formulations, and preventative skincare—such as sun protection and anti-pollution solutions—are seeing significant traction.”
Haircare is witnessing a “skinification” trend, where scalp health and damage repair are becoming priorities. Brands are integrating Ayurvedic and botanical ingredients with modern formulations to appeal to a wider audience.
Meanwhile, the fragrance category is gaining momentum, with long-lasting, natural scent profiles emerging as consumer favorites.
Hybrid Beauty and Sustainability: The New Norm
Consumers are seeking hybrid products that combine skincare benefits with makeup, such as SPF-infused foundations and hydrating lip tints. Sustainability is no longer optional—it is a core expectation.
Yashu Jain, Co-founder and CMO, MattLook Cosmetics, states, “Sustainability is no longer just a trend but a necessity. Customers are choosing brands with eco-friendly packaging, cruelty-free, and clean formulations. Hybrid products in makeup, combining skincare benefits with cosmetics, dominate the market.”
Brands that integrate clean formulations, transparent sourcing, and refillable packaging are gaining consumer trust, aligning with the rising demand for conscious beauty choices.
Luxury Haircare and Scalp Health: The Next Frontier
Haircare is expected to be a standout category in 2025, driven by innovations in vegan luxury, plant-based formulations, and stem cell research.
Aankith Aroraa, Founder & CEO of Streamline Beauty India, shares insights on premium haircare innovations, “In 2025, haircare will dominate beauty trends, driven by innovation, sustainability, and personalised care. Aveda leads with holistic, eco-conscious solutions, while Olaplex is evolving beyond bond repair to cater to diverse hair types, including curls. Stem cell advancements by Calecim will redefine scalp health, promoting regeneration and vitality.”
Consumers are now looking beyond conventional haircare, opting for science-backed, salon-quality treatments that offer long-term benefits.
Grooming and Beauty Tools: Convenience Meets High-Tech
Personal grooming tools and beauty tech devices are becoming integral to self-care routines. Rayed Merchant, Co-founder of Ikonic Professional, explains, “The personal grooming industry in 2025 will see a strong emphasis on innovation, sustainability, and efficiency. Consumers are increasingly looking for multifunctional grooming tools that deliver professional results, both at home and on the go. AI-powered personalization and eco-conscious beauty appliances will define the market.”
Beauty brands are focusing on compact, travel-friendly styling tools and home-use devices like LED masks and microcurrent tools, catering to urban consumers who seek salon-like results from the comfort of their homes.
Omnichannel Expansion and Experiential Retail
While ecommerce remains dominant, physical retail is evolving to offer immersive experiences, such as sampling zones and AI-driven skin analysis kiosks.
The beauty industry is moving towards a seamless omnichannel strategy, blending online and offline shopping experiences to cater to the changing demands of Indian consumers.
The Future of Beauty in India
As the Indian beauty industry moves into 2025, brands must balance innovation with authenticity, leveraging digital transformation, personalization, and sustainability. The convergence of AI-driven skincare, hybrid products, and clean beauty will redefine how consumers discover, purchase, and experience beauty.
With an exciting mix of traditional wisdom and modern advancements, the Indian beauty market is set to lead global trends, offering unparalleled solutions to an increasingly aware and discerning consumer base.
