Have you ever wondered why your favourite indie skincare brand suddenly got a big-budget makeover? Or why once-small, quirky beauty brands are now rubbing shoulders with global giants?
“If you can’t beat them, buy them”, this seems to be the new mantra in the beauty and personal care industry. In recent years, major FMCG players in India and across the globe have been strategically acquiring or investing in emerging new-age skincare brands, reshaping the industry’s landscape. Very recently, Unilever announced it has signed an agreement to acquire personal care brand Dr. Squatch from growth equity firm Summit Partners. Closer to home, in April this year, HUL acquired the homegrown skincare brand Minimalist. As legacy brands and digital-first disruptors increasingly converge, one question stands out: what makes these homegrown brands so attractive for acquisitions and investments?
“The Indian D2C beauty and personal care market is set to surge from $3 billion to $20 billion in the next five years, making it an attractive space for both global and Indian giants aiming to expand their footprint,” observes Jolene Fernandes Solanki, Chief Operating Officer, Madison Media Ultra.
She further highlights that homegrown brand founders possess a deep understanding of shifting consumer preferences, allowing them to develop trend-driven and highly targeted products. With consumers increasingly gravitating toward natural, organic, and wellness-focused skincare, these brands have become prime acquisition targets. “In my experience, large FMCG companies often struggle to drive innovation internally due to global mandates and rigid processes, making acquisitions a more effective way to bridge portfolio gaps. At the same time, for the acquired brand, such partnerships unlock access to extensive offline distribution networks, significantly boosting their reach and customer base,” she adds.
Shradha Agarwal, Co-founder & Global CEO, Grapes Worldwide, highlights that building a brand from scratch demands significant time and resources for product development, marketing, and distribution, making brand recognition a challenging feat. “On the other hand, acquisitions present a more lucrative opportunity, allowing companies to immediately tap into the existing customer base of these brands. By leveraging their established presence, larger players gain a competitive edge, strengthening distribution networks, enhancing brand trust, and expanding market reach.”
At the same time, Agarwal also notes, acquisitions help companies adapt to market requirements with agility, offering deeper insights into consumer behaviour, cultural nuances, and emerging trends shaping the industry.
According to Astute Analytica, the India skincare market was valued at US$ 8.78 billion in 2024 and is anticipated to reach US$ 17.69 billion by 2033, growing at a CAGR of 8.43% during the forecast period 2025–2033. From Hindustan Unilever Limited (HUL) acquiring a 90.5% stake in Minimalist for Rs 2,955 crore to Marico picking up a 60% stake in Just Herbs, established giants are doubling down on high-growth skincare brands. Beyond acquisitions, many homegrown brands are also attracting significant funding from international players—LVMH’s L Catterton has backed SUGAR Cosmetics, while Japan’s Kosé Corporation has invested in Foxtale.
Speaking about the acquisition by HUL, Mohit Yadav, Co-Founder & CEO, Minimalist, shares that the brand sees this transition as an opportunity rather than a challenge. He shares, “Being part of a larger ecosystem allows us to scale faster and bring our products to a larger audience. Strong alignment with our vision and culture will enable us to retain our agility as well as our innovation-driven and customer-centric approach, ensuring that we continue to grow without compromising on our core values.”
According to Menaka Menon, President and Managing Partner - Growth and Strategy, DDB Mudra, “Homegrown D2C beauty brands have grown by tapping into emerging consumer trends and catering to niche demands. Given their relatively smaller scale, these brands are highly agile, allowing them to evolve in sync with changing consumer preferences. Their model enables rapid prototyping, testing, and iteration, essential elements in the early stages of brand building. From the perspective of large companies, acquiring an existing brand is often a more efficient strategy than building one from the ground up, as it provides instant access to a new audience or a market requirement.”
Earlier this year, Alkem Laboratories signed a binding term sheet to acquire a 100% stake in Adroit Biomed Ltd., a pharmaceutical company focused on the skincare segment—for approximately Rs 140 crore. It’s not just India, across the globe, the skincare market is buzzing with activity. Most recently, e.l.f. Beauty made headlines by acquiring Hailey Bieber’s skincare and makeup brand, Rhode, in a $1 billion deal. The acquisition includes an initial payment of $800 million in cash and stock, with the potential for an additional $200 million based on future performance.
As homegrown skincare brands continue to gain traction, their growth strategies now extend well beyond digital dominance. From data-driven innovation to offline distribution expansion, these brands are redefining success in the beauty space.
But what exactly is fuelling this rapid rise?
“The marketing budgets of Indian D2C skincare brands can fluctuate significantly, but a considerable portion, typically around 25%-35% of their revenue, is allocated to advertising,” states Solanki. “A major share of their spending is directed toward digital channels, including influencer collaborations and social media promotions. With increasing internet penetration, shifting consumer preferences, and the growing influence of social media creators, these brands are tapping into new-age marketing strategies to drive growth,” she highlights.
“Transparency, honesty, and science have been our guiding principles since day one, and they will continue to define everything we do. While being part of a larger ecosystem gives us access to enhanced R&D, enabling greater innovation and scale, our core values remain unchanged - no fluff, no false claims, just genuine, effective skincare. Open communication remains at the heart of our approach, and we are committed to actively listening to our customers, understanding their needs, and delivering science-backed products they can trust,” Yadav explains while adding further that a significant portion of Minimalist’s sales come from their D2C platform alongside marketplaces and select retail channels contributing to their growth.
With the new backing, Minimalist now has the opportunity to leverage HUL’s widespread distribution network to expand their offline presence, making the products more accessible across India. “HUL’s global expertise and reach will help us accelerate international expansion, bringing our products to a wider audience worldwide,” Yadav remarks.
“With the rise of quick commerce, ad spending in the sector is set to grow further. Brands like Minimalist, Just Herbs, and Foxtale have gained traction by catering to niche consumer needs with ingredient transparency. To strengthen their presence, they invest in social media, content marketing, and e-commerce while building online communities for engagement and direct customer interaction,” explains Agarwal.
The surge in acquisitions and investments in India’s homegrown skincare market highlights the evolving dynamics of the beauty industry. As legacy FMCG giants tap into the innovation and agility of D2C brands, the landscape is set for further transformation. Now, who’s next in line for a big-ticket acquisition?
