How homegrown beauty brands crafted a bumper festive season this year

The beauty and personal care industry in India has been witnessing significant growth over the years, aided by changing lifestyles and preference as well as growing awareness. While global brands have a lion’s share of the beauty market in India, several homegrown beauty brands have also entered this lucrative market and registered impressive growth, especially in the post-pandemic period. Based on principles of Ayurveda, shunning chemicals, and especially catering to Indian skin types, homegrown brands are stealing a march over the global brands.

As per Statista, in 2020, the market size of the beauty and personal care industry was valued at Rs 1 trillion in India. The market size for this industry is likely to increase to about Rs 2 trillion by the year 2025.

Sharing data on the growth of Indian beauty brands, an Admitad report expects sales of Indian beauty brands to register a 20% growth in 2023, up from last year.

Honasa Consumer, the parent company of homegrown beauty brand Mamaearth, has been crafting a successful growth story. Honasa launched its IPO on October 31, 2023, and has posted net profit of Rs 30 crore in its first results post listing for Q2 FY2024, even as its revenue saw a 21% growth.

The Festive Blitz

The festive period this year has been a bonanza time for the overall beauty industry, and especially the homegrown brands.

Muskan Jain, Brand Manager, MARS Cosmetics, said, “The beauty and personal care industry is poised for a remarkable surge, with a projected growth of 2.7x during the upcoming festival season. MARS anticipates a threefold increase in sales compared to the previous year, thanks to the highly successful ‘Tyohaar? Taiyaar!’ campaign, which has boosted website traffic by tenfold.”

Reporting equally impressive growth, Shreedha Singh, Co-founder, T.A.C - The Ayurveda Co, said, “During the festival season, the skincare and makeup industry traditionally experiences remarkable growth. At T.A.C - The Ayurveda Co., we’ve witnessed an impressive 5x growth from the past year. While it is challenging to provide an industry-wide percentage due to variations in market dynamics, we can confidently say that our brand’s performance is a testament to the immense potential of the festival season for the beauty industry.”

In a similar vein, Saahil Nayar, CEO, Swiss Beauty, said, “This year’s festive season is expected to be a great opportunity for brands to attract more customers and generate greater revenues. During September to November, we generate approximately 20-30% of our annual revenue. While it is difficult to commit to a precise figure, it will surely be more profitable in comparison to the previous years.”

Consumer Behaviour

Sharing insights on consumer behaviour in the beauty space, Muskan Jain elaborated, “Data shows that people tend to indulge in affordable splurges during the festive season, which keeps us hopeful about the future trajectory of consumer spending in the makeup segment. Shoppers actively seek high discounts and lucrative deals, driving purchases. Additionally, festive-themed gift packs are experiencing robust sales, further enhancing the makeup segment’s market appeal.”

Shreedha Singh, observed, “Consumer behaviour undergoes a significant transformation during the festival season. At T.A.C, we’ve noticed that our audience, particularly those aged between 18 years and 35 years, is more inclined towards embracing natural and Ayurvedic beauty and personal care solutions. They prioritise wellness, authenticity, and sustainability, which aligns perfectly with our brand’s ethos. Additionally, they’re digitally savvy and tend to focus on online shopping. As a result, we are strategically curating campaigns and launching products that resonate with these values, enhancing their festive glam while celebrating the season with Ayurveda.”

“With increased mobility in visiting stores and discoverability through increased consumer interaction digitally, the consumers are more enthusiastic to spend during the festive period. Almost 40% of annual spends get captilised during the festive period, making it the most crucial season,” Saahil Nayar added here.