India’s beauty market, valued at approximately $16.9bn in 2024, as per Statista, is one of the fastest-growing consumer categories in the country. Driven by rising disposable incomes in the Indian middle class, increased digital penetration, and shifting preferences toward premium and clean products, the sector is expected to grow by 4.7% in 2025.
Through its Indian subsidiary, Hindustan Unilever Limited (HUL), Unilever holds a leading position in the Indian beauty market. It dominates categories like shampoo and conditioners, with nearly 66% and 75% market share respectively, through brands such as Dove, TRESemmé, and Sunsilk. In skincare and makeup, it holds more than a 50% share, led by Lakme, Ponds and Simple, while its premium brands account for 5.9% of the luxury cosmetics segment.
Decoding Unilever’s strategy to win India
As global companies refine their strategies to expand in India’s growing beauty sector, Unilever has taken a notably active approach through targeted investments. Since 2015 HUL and its venture capital arm, Unilever Ventures, have invested more than $400m on the Indian market with early-stage backing of Indē Wild (2025), RAS Luxury Skincare (2025), Arata (2024), ClayCo (2024), SkinInspired (2024), Wishcare (2023), Scentials (2019) or Plum (2018) as well as the acquisitions of Minimalist (2025) and Indulekha (2015).
The investments reflect Unilever’s broader strategy to position itself as a long-term leader in the evolving Indian beauty landscape, using acquisition and investment as strategic levers to drive premiumization, digitalization, developing clean and sustainable formulations, focusing on the luxury segment, and maintaining influence and relevance of its beauty portfolio in India.
1 – Premiumization of the beauty portfolio for the aspirational rising middle-class
As more Indian consumers seek efficient value-for-money skincare products, Unilever is pushing into the “masstige” beauty segment with its recent acquisition of Minimalist, a single active ingredient skincare brand similar to The Ordinary and known for its simple, transparent formulations and strong direct-to-consumer presence.
Minimalist was founded in 2020 by Mohit Yadav and Rahul Yadav. The acquisition of 90.5% of Minimalist by Unilever for $342m gives the group a presence in the affordable clinical-grade skincare category. Minimalist currently generates an estimated $50m as of 2024 with bestsellers including their Vitamin C serum, salicylic acid cleanser and SPF50 sunscreen.
2 – Digital-first brands for D2C market penetration
As e-commerce and direct-to-consumer platforms become the primary point of discovery and purchase for tier-1 and tier-2 Indian consumers, Unilever is focusing on building its presence through digital-first brands. Beyond bringing its international portfolio made up of brands like Simple, Love Beauty & Planet, and Acne Squad to India, the company has also invested in early-stage Indian digital-native brands like WishCare and ClayCo.
WishCare, a D2C brand founded in 2019 by Stuti, Ankit, and Ayush Kothari, received $2.5m in seed funding from Unilever in 2023. The brand offers haircare and skincare products, with bestselling products such as its hair growth serum, lightweight sunscreen and AHA underarm roll-on serum. It plans to expand R&D and enter international markets in future.
ClayCo, a skincare startup founded in 2024 by Niharika Jhunjhunwala, secured $2m in series A funding from Unilever to build its probiotics-based product portfolio and strengthen its digital-first brand strategy.
3 – Clean and sustainable beauty crafted exclusively for Indian consumers
Ingredient transparency and environmentally responsible formulations are shaping consumer preferences, particularly when adapted to fit local demands. Unilever’s investment in Arata, a clean haircare brand tailored for Indian hair types, reflects this shift and aligns with the growing demand for products made with Indian consumers in mind.
Arata was founded in 2018 by Dhruv Madhok and Dhruv Bhasin and received $4m in a 2025 series A funding round led by Unilever. The brand focuses on clean-label haircare products such as its hair growth serum, turmeric hair oil and alcohol-free hair gel. Arata plans to use its funding to invest in R&D, consumer research and expanding its omnichannel presence.
4 – Betting on luxury Ayurveda to attract the affluent Indian consumer segment
In a move that mirrors the luxury Ayurveda strategy pursued by its competitors (Estee Lauder Companies bought stakes in Forest Essentials and Puig acquired Kama Ayurveda), HUL has invested in RAS Luxury Skincare, a premium, ayurveda-inspired brand aimed at affluent Indian consumers.
RAS Luxury Skincare blends traditional botanicals with high-performance actives. Founded in 2017 by Sangeeta, Shubhika, and Suramya Jain, RAS received $5m in a series A funding round led by Unilever. Its bestselling products include the Radiance beauty-boosting elixir and 24K gold face elixir. With plans to open 50 retail outlets over the next three years, the brand is positioned as India’s next upcoming luxury ayurveda skincare brand.
5 – Reviving relevance through influencer-led brands and modernising legacy brands
As consumers increasingly align with values and narratives over traditional brand names, Unilever is backing founder-led and culturally relevant brands that resonate with younger audiences.
Indē Wild, founded in 2021 by Diipa Khosla, is one such brand. Backed by $5m in a 2025 seed funding round led by Unilever, it combines ayurvedic principles with science-led formulations. Known for its Champi hair oil and dewy lip treatment balm, the brand has rapidly gained visibility through its gender-inclusive campaign featuring actor Ishaan Khatter.
Alongside product investments, Unilever continues to shape cultural relevance through platforms like Lakmē Fashion Week, where it recently launched Lakmē sun sticks and blush sticks. The campaign, which gained viral traction online, reflects HUL’s effort to modernise legacy brands and connect with trend-aware younger consumers.
How does Unilever’s strategy compare with its competitors?
Global beauty groups are adopting distinct strategies to tap into India’s growing consumer base, aligning their global strengths with local opportunities.
Unilever, through HUL and Unilever Ventures, is focused on the premiumization of its beauty portfolio. Its strategy combines local relevance with global expansion plans. The acquisition of Minimalist reflects a shift toward science-backed, masstige products tailored to India’s rising middle class. Unilever’s brands are not only focused on the Indian market but are also positioned for international expansion through HUL’s massive offline distribution network.
In comparison, L’Oréal is combining direct investments and acquisitions to strengthen its presence across both the mass and professional salon markets. It acquired Cheryl’s Cosmeceuticals to expand its offerings in skin treatments used by beauty professionals, while its venture arm, BOLD, has invested in ingredient-conscious brands like Deconstruct and Arata. This dual focus allows it to serve both mass-market consumers and professional segments.
Finally, Estée Lauder is taking an incubation-led route, targeting India’s luxury beauty space. It holds a 49% stake in Forest Essentials, a luxury Ayurveda brand, and co-runs the Beauty & You start-up incubator with Nykaa to discover and support early-stage Indian beauty startups.
While each company is leaning into its own playbook, Unilever appears to be ahead of the curve in terms of market activity and timing thanks to a very aggressive early investment and acquisition strategy which positions it as a future leader in the Indian beauty market.
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