Festive season to fuel 10-12% rise in ad spends for beauty brands

In India, the festive season is closely tied to food, family, and fashion, with beauty and makeup often taking centre stage. This year, as households come together and social media timelines fill with festive looks, the country’s beauty industry is witnessing a surge that exceeds the usual seasonal uptick.

The Indian beauty and personal care market, valued at USD 23.99 billion in 2023, is projected to expand at a CAGR of 10.8% between 2025 and 2034, reaching an estimated USD 66.90 billion by the end of the period. Alongside market growth, beauty brands are reshaping their festive marketing strategies, directing a greater share of advertising budgets towards digital platforms.

The category is also benefiting from supportive policy changes. With reductions in GST rates expected to boost discretionary spending, beauty is likely to emerge as a key beneficiary. Karan Taurani, EVP, Elara Securities, said, "With personal care and beauty (10%) could surge on the back of premiumisation and demand from Gen Z."

With India’s beauty market on an upward trajectory and festivals continuing to shape consumer rituals, brands are scaling up marketing spends more aggressively than in previous years.

Festive campaigns, once seen as seasonal bursts, are now central to annual strategies. Industry executives indicate that beauty brands allocate nearly a third of their yearly budgets to this period, when consumer sentiment and purchase intent are at their peak. “We allocate about 35–40% of our marketing budget for the entire year to festive seasons because that is when buyer mood and intent to purchase things are both at their highest,” said Rishabh Sethia, Director and Business Administrator at MARS Cosmetics.

Medhavi Nain, Head of Marketing – International Brands at House of Beauty, echoed the view, noting that 30-40% of their annual marketing budgets are directed towards this window to maximise impact on sales and visibility.

Consumer appetite appears to justify these investments. According to Umesh Bopche, CEO of Experience Commerce and CYLNDR India, a Glance study found that more than three-quarters of shoppers increased their festive budgets in 2024 compared to the year before, with the trend expected to continue into 2025. Reflecting this momentum, Ankush Bhandarkar, Director – Media (Mumbai) at Hashtag Orange, said mid-to-large-scale makeup brands are preparing for a 10-12% increase in festive-season ad spends this year, driven by buoyant consumer sentiment and the return of major product launches and promotions.

This shift marks a clear departure from traditional media strategies. With consumer behaviour evolving and a digital-first approach defining India’s beauty landscape, festive campaigns have become the backbone of marketing efforts.

India’s beauty market is booming. Online sales jumped 39% between June and November 2024, growing much faster than offline sales. Young shoppers are driving this digital shift, and it’s changing how beauty brands plan festive marketing—not just in budgets, but in strategy overall.

Vidushi Goyal, Chief Marketing Officer at Swiss Beauty, confirms this shift, "Festive is the most critical retail period for beauty, and at Swiss Beauty, there has been a 20% increase in festive marketing spend this year compared to last year. Our mix is heavily skewed towards digital platforms, since consumer discovery and decision-making increasingly happen online."

The transformation is being shaped by two key forces: the rebound of offline retail activations and the sustained momentum of digital-first discovery. According to Ankush Bhandarkar, “Consumers are seeking indulgence-led purchases, but with sharper value expectations, prompting brands to scale up both brand-building and performance-led campaigns.”

Digital dominance is reshaping the media mix

The festive media playbook for beauty brands has undergone a decisive shift. Digital platforms now command 50–60% of festive ad spends, marking a clear break from the television-first strategies of earlier years. “In terms of media mix, digital dominates, accounting for over 60% of festive advertising; TV remains relevant but secondary, while emerging mediums like CTV and retail media are gaining traction,” said Bhandarkar.

Umesh Bopche, placed spends at 50–60% for digital, 25–30% for television, and just 12–15% for print, the latter largely confined to rural and semi-urban markets.

At the brand level, the recalibration is evident. “Digital media like social media, influencer marketing, and content marketing receive around 60% of the outlay,” said Rishabh Sethia, Director and Business Administrator at MARS Cosmetics. Swiss Beauty too has leaned heavily into digital. “Social commerce, beauty tutorials, and influencer-led storytelling dominate our festive spends, alongside strong investments in retail visibility. Since beauty is impulse-driven, presence across Instagram Reels, YouTube Shorts, e-commerce storefronts, and regional OTT platforms keeps Swiss Beauty visible, accessible, and aspirational during peak buying moments,” explained Goyal.

Within digital spends, platforms that combine discovery with conversion are drawing the most attention. Bopche highlighted YouTube advertising for scale and performance; OTT platforms like JioCinema, SonyLIV, and Disney+ Hotstar for premium reach and engagement; and retail media on Nykaa, Myntra, and Tira, which has become critical for festive conversions in beauty. Quick commerce is also an emerging winner. “Apps like Blinkit, Zepto, and Instamart, perfect for last-minute festive shoppers with heavy discounting and bundle-driven trials, have become integral to beauty brands’ festive strategies,” Bopche added.

The rise of retail media 

Retail media is emerging as one of the fastest-growing channels in Indian beauty marketing. Globally projected to cross $130 billion in 2025, its appeal lies in reaching consumers right at the point of purchase. In India too, platforms like Nykaa, Amazon, Myntra, and Tira are becoming essential, as over two-thirds of online beauty shoppers begin their search directly on marketplaces, not Google or brand sites.

For brands, this means higher ROI and sharper conversion. “Retail media accounts for about 20–25% of our digital spend and is a huge part of performance marketing,” says Rishabh Sethia. “While social media fuels inspiration and awareness, retail media engages consumers at the second-to-last step of their journey.”

The playbook for beauty brands is clear, social drives aspiration, retail media closes the loop. On Nykaa or Amazon, brands showcase festive sets, bundles, and shade-match suggestions tailored to user intent, formats that convert in real time.

Medhavi Nain says, “Retail media has become a key pillar of our strategy … Unlike social advertising, which focuses on storytelling, retail media is performance-driven, targeting high-intent audiences and driving direct sales.”

Technology is changing discovery

If festive marketing is about being present where consumers are, technology is becoming the bridge between aspiration and action. Globally, AR-enabled journeys have delivered 30–50% higher conversion rates, noted Amyn Ghadiali, Country Head at Gozoop Creative.

In India, this trend is visible across both digital and offline activations. Platforms like Nykaa and Myntra are integrating AI shade-match tools, while beauty-tech stores such as Tira and Tata are experimenting with smart mirrors and digital skin tests.

“Technology—especially AR—is playing a transformational role. Virtual try-ons, shade-matching tools, and AR-powered live shopping are showing measurable impact. Brands adopting these solutions are reporting 20–30% higher add-to-cart rates and reduced return ratios, as shoppers feel more confident about their choices,” said Ankush Bhandarkar. He added that interactive formats are creating deeper brand experiences: “Live tutorials paired with AR have boosted conversion intent by 25–35%, proving that interactive technology is directly shaping purchase behaviour this festive season.”

Ghadiali explained the consumer impact in more tangible terms: “A shopper trying on a lipstick virtually during a festive sale doesn’t just see a product; she sees herself in the celebration. That subtle shift drives action.”

Trends foreseen

The beauty industry’s festive playbook is no longer limited to one big-budget Diwali splash. This year, brands are moving towards hyper-local storytelling, mobile-first vernacular content, and micro-festival activations. 

Amyn Ghadial says, “The shift is from one grand ‘Diwali’ campaign to dozens of smaller, culturally nuanced moments across regions. When a consumer sees a relatable creator celebrate with them, it’s no longer just a product pitch—it’s about belonging to the moment.”

Regional influence is also emerging as a measurable growth driver. “Marketing during this festive season will centre around authenticity, local interest, and convenience-driven campaigns. Regional influencer marketing is gaining momentum as companies increasingly look to connect with hyperlocal consumers,” says Rishabh Sethia.

The competition, however, is only intensifying. “Festive advertising for beauty brands in 2025 is bigger, sharper, and far more ROI-driven. The budgets are higher, the competition is tougher, and the opportunity is immense — but only for those who can deliver the right story in the right moment,” says Umesh Bopche. 

Festive ads in beauty are no longer just a seasonal push; they’re the heart of yearly plans. With bigger budgets, more focus on digital, and new tech shaping how people shop, competition is tougher than ever.