Beauty and personal care (BPC) has emerged as the hottest consolidation play within India’s direct-to-consumer (D2C) ecosystem, outpacing food, beverages and other consumer categories in both the size and frequency of acquisitions. As legacy FMCG companies hunt for premium growth and younger consumers, beauty brands are increasingly becoming their preferred targets.

The deal activity reflects this shift. Hindustan Unilever Ltd acquired skincare brand Minimalist for ₹2,706 crore, while Marico acquired a majority stake in nutrition brand Plix for ₹380 crore. Emami acquired The Man Company for ₹272 crore. More recently, Dabur invested ₹60 crore for a minority stake in luxury skincare brand RAS Beauty, French cosmetics major L’Oréal acquired a majority stake in Innovist — the parent of Chemist at Play and Bare Anatomy — and Estée Lauder Companies announced it will acquire the remaining 51 per cent stake in ayurvedic beauty brand Forest Essentials.

The trend is also reflected in industry data. According to Crisil Ratings, nearly 60 per cent of FMCG companies’ D2C acquisitions over the past five years have been in the personal care segment.

Industry experts say the attraction goes beyond consumer demand. Beauty brands are easier to premiumise than most other D2C categories because consumers are more willing to pay for science-backed formulations, active ingredients and visible product efficacy. Social media has further accelerated this trend by creating awareness around skincare routines, ingredient-led products and premium beauty brands.

Archana Jahagirdar, Founder and Managing Partner at Rukam Capital, said the beauty category enjoys structural advantages that are difficult to replicate elsewhere in FMCG.

“Beauty has a robust contract manufacturing ecosystem, which is not true for many other FMCG categories. The category also commands higher margins, stronger repeat purchases and therefore better valuations. It is not whimsical and is not individual-driven,” she said.

Jahagirdar added that the surge in venture capital over the past few years has enabled startups to build brands and validate new consumer propositions, creating attractive acquisition opportunities for established FMCG companies.

“The amount of venture capital available for building companies from zero to one has increased significantly. That makes it meaningful for legacy companies to acquire these businesses rather than build them from scratch,” she told businessline.

Sandeep Murthy, Partner and Managing Director at Lightbox, believes the growing pace of acquisitions signals the maturity of India’s consumer market.

“FMCG has historically been among the most acquisitive sectors globally. The fact that we are now seeing this happen in India indicates that the market has matured enough for niche brands to emerge, validate customer demand and eventually become acquisition targets for larger companies,” he said. “A healthy acquisition market also creates a viable exit pathway for founders and investors, improving valuations across the consumer startup ecosystem.”

According to Sandeep Abhange, Research Analyst (Consumer & Midcaps) at LKP Securities, beauty’s financial profile makes it significantly more attractive than other D2C categories.

“Unlike food businesses, which typically operate at gross margins of 35-50 per cent, beauty brands often enjoy margins of 60-75 per cent. They also benefit from stronger repeat consumption and multiple expansion opportunities across skincare, haircare, wellness and supplements,” he said.

That advantage is reflected in valuations. Digital beauty brands command around 8-13 times revenue, compared with just 2-4 times for D2C food brands. Large FMCG companies are acquiring these businesses to gain access to younger consumers, digital-first capabilities and faster product innovation — areas where traditional brand building has often been slower.

Abhange expects the next wave of consolidation to centre on science-led skincare, premium haircare, men’s grooming and functional wellness, with derma-beauty remaining the most attractive segment because of its premium pricing, ingredient-led positioning and global scalability.

While consolidation is likely to extend to other consumer categories over time, industry experts believe beauty will continue to dominate D2C acquisitions over the next three to four years, supported by superior unit economics, stronger brand loyalty and consumers’ growing willingness to trade up for premium, science-backed products.

Published on June 18, 2026