L’Oreal CEO Nicolas Hieronimus on Monday announced plans to more than double business in India in the coming few years. The French-based giant’s big bet on India’s growing cosmetics market includes expansion of factories with an increased focus on exports from the country.
“It [India] is a country of opportunities and one of the fastest beauty markets in the world and is a big priority for L’Oreal,” said L’Oreal CEO, according to PTI. “We intend to more than double our business in the next couple of years, expand our factories, which are today manufacturing 95% of what we sell in India and also exporting to the rest of the region,” he added.
L’Oreal’s hair and skin products manufactured in India are exported outside, especially to the Gulf region, he said.
“We are manufacturing half a billion units in India, but we intend to increase that in the years to come,” Hieronimus reportedly said.
L’Oreal’s bet on the cosmetic market has come at a time when the Indian beauty industry is projected to grow from $20 billion in 2024 to $34 billion by 2028, driven mainly by demand from Gen Z, an increase in the impact of social media, the growth of ecommerce particularly in small cities and towns, and a rise in disposable income. The industry includes the manufacturing and distribution of cosmetics, beauty items, appliances, and services. According to the India Brand Equity Foundation report, by 2025 India will comprise 5% of the total cosmetics market and is set to reach the top five global markets in terms of revenue.
“The market for beauty is as big as the number of people in the country,” business and brand strategy expert Harish Bijoor had earlier told Outlook Business.
The growth of the market has also attracted Indian giants like Aditya Birla Group, Hindustan Unilever, who recently acquired skincare brand Minimalist, Tata Group and Reliance Industries.
