In the rapidly evolving landscape of India’s personal-care market, Honasa Consumer Ltd., the parent company of Mamaearth, is making waves with its focus on locally crafted, natural beauty products tailored specifically for Indian consumers. With offerings like onion hair oil and curd-and-turmeric face masks, Honasa is challenging global giants and leading the charge in the world’s fastest-growing beauty market.
Varun Alagh, co-founder and CEO of Honasa Consumer, emphasized the increasing demand among Indian consumers for products made from local, natural ingredients. He stated in an interview that while international competitors mostly offer products from their global portfolios, Honasa’s products are uniquely crafted with India’s tropical weather and cultural nuances in mind. This focus on catering to local tastes gives them a significant edge in the market.
According to data from Hindustan Unilever Ltd. (HUL), one-third of the beauty and wellbeing brands available in India are from Unilever Plc’s global portfolio. However, companies like HUL are shifting gears, introducing new personal-care products tailored for Indian consumers. This trend is evident across the industry, with brands like Estee Lauder Companies Inc. rolling out products like limited-edition lipsticks inspired by the “colour story of India.”
The success of adapting products to local preferences has been seen in neighboring China initially, where local beauty labels gained market share against global rivals. However, questions about sustainability arose amid economic challenges, raising doubts about the long-term viability of these brands.
Honasa Consumer stands out as a leader among a plethora of new personal-care niche brands challenging global giants in India, according to Redseer Management Consulting Pvt. The company’s success underscores the appeal of products tailored to Indian preferences, rather than those geared for western markets.
Adding to its portfolio, the Gurgaon-based company recently launched Staze, a cosmetics brand, alongside its existing brands like Aqualogica and Dr. Sheth’s, which cater to Indian skincare needs.
The Indian beauty and personal-care industry is poised for rapid growth, driven by a fast-expanding middle class. Redseer forecasts an average annual growth rate of 10 percent between 2022 and 2027, making it the fastest-growing market globally.
Mamaearth, the flagship brand of Honasa Consumer, was founded in 2016 with a focus on “toxin-free” products made with locally sourced ingredients. Its revenue surged by 28 percent to Rs 488 crore ($58.6 million) in the quarter ended Dec. 31, with profits growing by 264 percent in the same period to Rs 25.9 crore.
The company’s successful listing on the Mumbai stock exchange in November, where it raised Rs 1,700 crore, indicates investor confidence in its growth prospects. Since its trading debut on Nov. 7, Honasa Consumer’s shares have gained about 32 percent, outperforming India’s benchmark index Nifty 50, which rose 15.4 percent in the same period.
As Honasa Consumer continues to innovate and cater to the evolving needs of Indian consumers, it is poised to maintain its leadership position in the dynamic Indian beauty market, setting new standards for locally crafted, made-for-India beauty products.
