Meghana Sundaresan, 24, a microbiology researcher, is extremely conscious of what she puts on her face, hair and body. Aware that she is acne prone, she peruses labels and looks at pH values and active ingredients before choosing soaps, shampoos, face creams and sunscreens.
Meghana is not alone. More and more consumers — especially the young — are gravitating towards science-backed skincare products, with many actually visiting skin specialists and investing in dermatology-based products, expensive though they may be.
In this light, HUL’s acquisition of D2C beauty brand Minimalist, at a whopping ₹2,995 crore valuation, makes sense.
Minimalist products use science-backed formulas to address specific skin concerns, and the brand’s ‘Hide Nothing’ tag, along with the strategy of playing up the role of active ingredients like silymarin and hyaluronic acid, has struck a chord with consumers, who google everything before using.
Growing portfolio
HUL is actually late to the party. Arch rival L’Oréal launched its L’Oréal Dermatological Beauty division in India in August 2023 and introduced CeraVe, its first dermatological brand, in the Indian market. Says Rami Itany, Director, L’Oréal Dermatological Beauty, “Today, dermatological skincare is one of the fastest growing categories in Indian beauty, with consumers seeking health, wellness, and science-backed products.”
ITC had arrived even earlier on the scene, launching its Dermafique brand in 2018 with products developed in association with skin specialists and cellular biologists.
Another player to spot the trend early was Honasa Consumer Ltd, the parent company of Mama Earth, which launched The Derma Co as far back as 2020.
Anuja Mishra, EVP and Chief Marketing Officer, Honasa Consumer Ltd, says, “The demand for science-backed, dermatologist-designed skincare is rising rapidly, driven by growing consumer awareness. At The Derma Co, we recognised this trend early on and focused on product innovation and building a strong product portfolio with active ingredients.
In just over four years, says Mishra, “we surpassed an annual revenue run rate of ₹500 crore. We expect to attain ₹1,000 crore revenue within three to five years. Categories like face wash, sunscreen, serum, and moisturiser have emerged as consumer favourites in dermatologist formulations.”
New formulations
As Itany says, “Consumers are much more aware of the ingredients and are demanding formulations that are developed and recommended by dermatologists. One in three consumers claims to have sensitive skin and consumers are becoming discerning, seeking transparency in the products they purchase.”
“Of particular interest,” says Itany, “we see a surge in online searches for ‘ceramides’. When given in the right dosage and formulation, ceramides repair the skin’s natural barrier and provide long-lasting hydration.”
Nitin Passi, chairman and managing director, Lotus Herbals, which acquired 32 per cent stake in dermaceuticals maker FixDerma, besides launching its own DermaBotanics range with scientifically optimised actives, says, “Our decision to include power-packed actives like hyaluronic acid, peptides and ceramides reflects the ‘skin-intellect fusion’ ethos trending globally. These ingredients dominate the beauty playbook because they combine targeted efficacy with results.”
He adds, “The modern beauty consumer is no longer satisfied with generic skincare — they demand ‘efficacy-engineered beauty’, where every ingredient is clinically validated, and the results are measurable. This has given rise to ‘performative skincare’, a category defined by targeted dermaceutical formulations that deliver quantifiable improvements in skin health.”
Finding validation
As for the investment in FixDerma, Passi says, “We are witnessing a strong double-digit growth trajectory, reinforcing the market’s confidence in scientifically advanced formulations.
“As this category continues to expand, we are scaling up our R&D investments, product innovation, and dermatological collaborations to shape the future of performance skincare — where efficacy is not just promised but clinically validated.”
Honasa’s Mishra says the company is doubling down on building an omnichannel presence for The Derma Co and is also opening exclusive brand outlets to provide a more immersive and personalised experience.
A gungho Mishra concludes, “The active ingredient skincare market is only set to grow further, and we are positioned to lead that growth in India and build products that align with the evolving skincare needs of Indian consumers.”