During my trip to the Alps a couple of years ago with a leading skincare brand, I met fellow colleagues from the APAC market and while conversations around local brands from their respective countries were insightful, I wondered if I could ever say the same about the Indian skincare industry. Though the number of homegrown skincare brands has increased in the last decade, India has seen a staggering growth in that space. However, the global spotlight is on us now, not only as the market space but for the homegrown brands that are making waves worldwide. The Indian skincare industry is booming, and the global focus is shifting towards us, but are we there yet? 

The Beginning 

For as long as I can remember, Indian brands have struggled to win the trust of beauty buyers. Though people experimented with make-up, choosing a new, homegrown skincare brand over established foreign ones has always been a point of contention. Even as a teenager, I remember choosing international pharmacy brands over Indian ones unless prescribed by a dermatologist. I blame it on the limited number of options available and lack of knowledge a couple of decades ago. The perception, however, is changing rapidly as young shoppers are willing to experiment with their choices and invest in niche products. “Homegrown industry has changed over the last two decades, from drugstore cosmetic brands to elevated Ayurveda in early aughts to now where we are experimenting with all genres,” says Vasudha Rai, author of Glow and Ritual. 

Widespread access to the Internet, an increase in disposable income, and the largest population of young people have played a catalyst in the growth of homegrown brands foraying into the industry. “Rising disposable incomes, growing awareness, and a preference for clean and effective products have fuelled this boom, allowing numerous brands to thrive,” says Prachi Bhandari, Co-Founder and Head of Research, Aminu Wellness. A science-backed skincare brand, Aminu was founded in 2019 by Bhandari and her husband to create a line that works holistically for the skin and educates and provides customised recommendations tailored to skin needs. 

What caused this sudden shift in consumer behaviour towards homegrown skincare brands? There could be several factors behind this change, however the selfcare phenomenon during the pandemic played a significant role. “With the pandemic especially, we were unable to buy a lot of international products which, by default, promoted local offerings,” says Shamika Haldikapur, Founder and CEO, d’you, a skincare brand that made its place in Alia Bhatt’s vanity and was recently recognised at Business of Beauty Awards. The rise of good brands, including celebrity-owned ones, has captured consumer attention and aided discovery for other Indian brands. Needless to say, when a global icon like Deepika Padukone launches her skincare brand, the world takes notice. Massive difference in prices between homegrown and international brands further persuaded people to opt for Indian brands over global ones. In addition to this, social media also helped in bringing consumers closer to the local brands. “With Instagram, there’s space for discovery and adaptability. I can reach a new customer and learn about a customer’s grievances at the same moment and adapt,” adds Haldikapur. Ease of accessibility and faster deliveries are some of the other factors that fueled the growth of homegrown brands.  

The Current Scenario 

The Indian skincare industry has evolved over the last decade. The consumer is looking for efficient and quality products and the brands are constantly trying to deliver the same. The skincare space is highly populated, from global to homegrown brands, consumers have several options available in different categories–from price range to brand appeal. “It almost seemed like consumers were waiting to get their hands on products that had some familiarity,” says Smita Vallurupalli, Co-founder of Old School Rituals and Founder of Bubbles Salon. However, homegrown brands are leveraging their deep understanding of the Indian consumers, their buying behaviour, and current trends. “The shift towards homegrown brands can be attributed to increased awareness about the ingredients, a desire for high-quality and effective products and most importantly a growing sense of pride in supporting local businesses among the consumers and trend setters (content creators, celebrities) alike,” says Bhandari. 

Along with this, the perfect blend of traditional ingredients and modern technology that homegrown brands are offering is helping them penetrate the market better than before. While brands like Forest Essentials and Kama Ayurveda found their footing with science-backed Ayurveda solutions, new brands are focusing on specific USP to gain consumer’s interest. For instance, Pahadi Local, a skincare and wellness brand that launched seven years ago tapped into the undiscovered secrets from the Himalayas. “I knew then that I had to tap into the Himalayas’ many embedded secrets and bring them home to people. We bring skincare in its simplest form directly from the source,” says Jessica Jayne, founder of Pahadi Local which got early validation from consumers with its Gutti ka Tel (Apricot Kernel Oil) becoming the most popular product.  

“You can do this in branding, the kind of products you make, your packaging—there are a hundred ways to set yourself apart. But what’s more critical is to have quality products,” says Haldikapur. The changes on the supply side have also encouraged the launch of new brands. Today, brands can launch without massive initial investment relying on easy access to targetted consumers via digital platforms like social media and e-commerce platforms.  

What Lies Ahead? 

The Indian homegrown skincare industry is in an exciting phase currently; while there are multiple brands launching every other month, there’s something unique each of them have to offer to the buyers. With the influx of homegrown brands, what is going to be its future? Brand owners believe that if the brand can stand the test of time after the initial virality of products, the chances are that it will survive. “Brands that launch with hot products or solely with endorsements – without the quality to back them up – are likely to fizzle away,” adds Haldikapur. On the other hand, Jayne says that she’s curious to see the outcome which can go either way–the market could get highly saturated or there will be only key players left. However, many believe that the industry is poised for dynamic growth. “The evolution will not only expand product offerings but also elevate industry standards, benefiting consumers with a broader array of high-quality, culturally inspired skincare solutions,” explains Bhandari. 

While the homegrown industry continues to expand bringing something exciting for Indian shoppers, it’s still too young to penetrate the global market. Though it’s been acknowledged and appreciated worldwide, entrepreneurs believe that it will take continuous efforts towards effective communication, robust research, and quality to reach the global market. “To penetrate the global market, homegrown brands must prioritise differentiation through both product excellence and effective communication,” says Bhandari. Jayne also believes that product integrity could put the Indian brands on the global map. However, it’s going to take some time. So, as the market space grows in the country, taking it across borders will take more than what homegrown brands could afford now. “We are beginning to penetrate the global market with Kama Ayurveda and Forest Essentials opening their stores internationally. Eventually, there will be a brand that will achieve that cult status in the global industry,” adds Rai.