Beauty Brands Set to Boost Ad Spends by 10-12% this Festive Season

In a vibrant display of market optimism, India's beauty and personal care sector is gearing up for a significant uptick in advertising expenditures during the upcoming festive season.

Industry experts predict a 10-12% increase in ad spends for mid-to-large-scale makeup brands, driven by heightened consumer sentiment, new product launches, and a digital-first approach to marketing. This surge aligns with the broader growth trajectory of the Indian beauty market, valued at USD 23.99 billion in 2023 and projected to expand at a compound annual growth rate (CAGR) of 10.8% from 2025 to 2034, reaching an impressive USD 66.90 billion by the latter year.

The festive period, encompassing celebrations like Diwali, Navratri, and Christmas, has long been synonymous with indulgence in food, family gatherings, and fashion. Beauty products, particularly makeup and personal care items, play a pivotal role as consumers seek to enhance their festive looks. Social media platforms amplify this trend, with users sharing tutorials and inspirations that fuel demand. Adding to the momentum are anticipated policy shifts, such as potential reductions in Goods and Services Tax (GST) rates, which could stimulate discretionary spending and further propel the sector's growth.

Beauty brands are channeling substantial portions of their annual budgets—typically 30-40%—into this high-stakes season to capitalize on peak purchase intent. Rishabh Sethia, Director and Business Administrator at MARS Cosmetics, emphasized that his company allocates 35-40% of its yearly marketing funds to festive campaigns, focusing on digital media, influencer partnerships, and content creation, which account for about 60% of their outlay. Similarly, Medhavi Nain, Head of Marketing – International Brands at House of Beauty, highlighted the strategic importance of this period, noting that 30-40% of budgets are directed here for maximum visibility and sales impact.

A notable shift towards digital platforms dominates the festive media mix. Digital ad spends now constitute 50-60% of total budgets, surpassing traditional channels like television (25-30%) and print (12-15%, primarily in rural markets). Vidushi Goyal, Chief Marketing Officer at Swiss Beauty, reported a 20% year-over-year increase in festive marketing investments, with a heavy emphasis on online channels where consumers discover and decide on products. Key platforms include Instagram Reels, YouTube Shorts, e-commerce sites, and regional OTT services like JioCinema and SonyLIV.

Emerging trends underscore the rise of retail media and technology-driven innovations. Retail media, projected to exceed $130 billion globally in 2025, is capturing 20-25% of digital spends for brands like MARS Cosmetics. Platforms such as Nykaa, Amazon, Myntra, and Tira serve as primary search starting points for over two-thirds of online beauty shoppers, enabling targeted performance marketing and real-time conversions through festive bundles and shade-matching tools. Umesh Bopche, CEO of Experience Commerce and CYLNDR India, pointed to quick commerce apps like Blinkit and Zepto as vital for last-minute purchases, offering discounts and trials to festive shoppers.

Technology is revolutionizing product discovery, with Augmented Reality (AR) enabling virtual try-ons and personalized experiences. Karan Taurani from Elara Securities anticipates strong growth in personal care due to premiumization and Gen Z preferences, while Ankush Bhandarkar of Hashtag Orange forecasts the 10-12% ad spend rise amid robust online sales growth of 39% in 2024.

As the festive lights illuminate, beauty brands are not just selling products but crafting immersive narratives. This strategic pivot towards digital and tech integration promises to redefine festive marketing, ensuring sustained growth in one of India's most dynamic consumer sectors.

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