Campaign India Team
Aug 25, 2025

K-Beauty in India: From fandom to formulas, pricing becomes the real battle

The sector sees 35% brand expansion and strategic pricing shift in India, reveals a Sciative Solutions report.

Brands that balance pricing, perception, and performance are becoming leaders in the K-beauty category.
Brands that balance pricing, perception, and performance are becoming leaders in the K-beauty category.

For years, Korean pop culture—through chart-topping music and binge-worthy dramas—has shaped the aspirations of young Indian audiences. Now, the country’s beauty industry is seeing the ripple effect as Korean skincare and cosmetics, often referred to as K-beauty, gain ground in a competitive market.

K-beauty distinguishes itself with multi-step routines, ritual-driven care and unusual ingredients—ranging from snail mucin to Jeju volcanic ash—all aimed at delivering the coveted ‘glass skin’ look. But while novelty drew early attention, new data suggests the category’s future in India depends on credibility, pricing discipline and localisation rather than hype alone.

A report by Sciative Solutions, which analysed over 51,000 SKUs across 38 K-beauty brands between October 2024 and July 2025, shows the scale of expansion. Brand portfolios grew by 35% over the period, as established players widened their ranges and newcomers entered the fray.

Laneige, for example, expanded from 62 to 87 SKUs, while The Face Shop increased from 77 to 104. Newer entrants such as Anua, VT Cosmetics, Mixsoon and Round Lab arrived in mid-2025, reflecting sustained demand despite market saturation.

“India’s K-beauty trend is shifting from novelty to value-driven loyalty,” said Vijeta Soni, co-founder and CEO, Sciative Solutions. “Brands that balance pricing, perception, and performance are becoming leaders in the category. AI-driven pricing intelligence will be crucial for maintaining that advantage.”

The pricing puzzle

The report highlights a distinct pattern: mid-priced, well-rated brands such as COSRX, Laneige and Beauty of Joseon are outperforming both luxury and budget lines. This suggests Indian consumers are no longer swayed by heavy discounts alone, but instead by efficacy and trust.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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Nearly 30% of K-beauty brands revised their discounting strategies in 2025. February emerged as the most competitive month for launches and promotions. Brands such as Etude House adopted tactical moderation, offering discounts averaging 18% to encourage trials without diluting brand value. In contrast, high-priced but lower-rated players including AHC, Dr. Different and VT Cosmetics found traction harder to secure.

Premium entrants like Lisen and Mixsoon have avoided steep discounts altogether, signalling a deliberate focus on perception-led growth rather than volume-driven play.

“We see a big chance for dynamic pricing in beauty commerce,” said Dr. Anshu Jalora, founder and managing director, Sciative Solutions. “As competition grows, brands that adjust pricing in real time – based on stock levels, consumer behaviour, and competitors – will turn challenges into advantages.”

Market size and cultural levers

The broader context is India’s beauty and personal care sector, projected to reach $45 billion by 2030 with an annual growth rate of 12%, according to a study by Kindlife and Datum Intelligence. K-beauty is a fast-growing subset within this, expected to climb from $0.4 billion in 2024 to $1.5 billion by 2030, at a compound rate of 25.9%.

Underlying this growth is a generational shift: millennials and Gen Z consumers increasingly adopt ingredient-focused skincare routines over impulse cosmetics. The influence of Korean pop culture remains strong, but it is being reinforced by rising awareness of ritual-led, results-oriented self-care.

Amore Pacific—the parent company behind Innisfree, Laneige, Etude and COSRX—has identified India as its second fastest-growing market after the US, underscoring the strategic importance of the country.

Challenges beyond growth

Despite robust projections, K-beauty’s foothold in India is not guaranteed. Thin gross margins and heavy marketing spends threaten profitability in the long run. Consumer expectations around quality and pricing mean brands must continuously innovate without overspending on acquisition.

The report suggests Indian beauty labels may also have lessons to draw from this wave. Pricing strategies that combine accessibility with perceived value, possibly through tiered product portfolios, could help domestic brands retain relevance against international competition.

Soni noted that consumer behaviour is evolving, “Brands that balance pricing, perception, and performance are becoming leaders in the category.” This emphasis on trust highlights why consumer reviews and product credibility now influence buying decisions as much as discounts or celebrity endorsements once did.

The analysis points to a clear direction: promotional blitzes are not enough to secure market share. Brands must manage a mix of seasonality, consumer review trends and positioning to sustain performance.

The next phase of K-beauty in India will likely hinge on building long-term loyalty through effective pricing intelligence, ingredient-led marketing and sustained consumer engagement.

K-beauty’s journey in India is moving from cultural fascination to mainstream adoption. The challenge ahead is whether the category can sustain momentum without eroding margins or brand equity. For agencies and marketers, it offers a test case in balancing aspiration-driven storytelling with the realities of pricing and distribution in one of the world’s most competitive beauty markets.

 

Source:
Campaign India

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