With the UK and India making it cheaper and easier to purchase and sell products, services under the India-UK Free Trade Agreement (FTA), Indian skincare, cosmetic companies are eyeing UK as a large potential market. 

Companies that are exporting to the UK presently have to handle tariffs upto 20 per cent. This has resulted in restrictive exports.  

“A staged reduction or immediate elimination could open up the UK market in a way that hasn’t been possible before. And it’s not just about the immediate impact. With tariffs on perfumes being halved, there’s a chance to position Indian brands more competitively in the UK. Right now, we are dealing with tariffs as high as 20 per cent on soaps, shaving and face creams. It is early, but the move is a clear signal towards stronger trade ties and more accessible market entry,” said Tanay Sharma, Co-Founder & COO, CITTA that offers skincare and baby care products. 

Indian consumers will also have wider access to the UK skincare and cosmetic product portfolio with the increase in imports, with tariffs expected to be halved and reduced. 

Premium/ Mass market products

The competition among premium skin care and beautifying products with a wider portfolio will increase in the Indian market. However Skincare products aimed at the mass market are not expected to see any changes. 

“The competition will increase in the premium segment and also propagate made-in-India manufacturing for these imported brands over the next few years. We own Blue Heaven and Nature’s Essence brands and offer quality products at affordable rates, We do not expect a significant change in mass market consumer behaviour. With our strong distribution and manufacturing lines, we will continue to be the leader in the mass market segment,” said Rohit Gothi, MD & CEO of ESME Consumers. 

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Published on May 10, 2025