The signing of the EU–India Free Trade Agreement (FTA) marks a watershed moment in global commerce, creating the largest free trade zone of its kind. For the cosmetics industry, the deal is particularly transformative, lowering tariffs, aligning regulatory standards, and opening new avenues for collaboration between Indian and European players. 

Emmanuel Guichard, general manager of Paris-based FEBA (Federation of Beauty Companies), calls India “a key priority” and says, “We are investing a lot in India in anticipation of the FTA.” Industry analysts predict that India’s beauty sector will nearly double to US$40.8 billion by 2030. L’Oréal has recently unveiled ambitious plans to scale up its presence in India, positioning the market as a cornerstone of its global expansion strategy. CEO Nicolas Hieronimus said, “India is a very strategic market for L’Oréal. We intend to more than double our business in the next couple of years and expand our factories—which are today manufacturing 95% of what we sell in India and also export to the rest of the region.” Meanwhile, Estée Lauder has been deepening its retail and marketing investments in the country. Last year, it expanded its entrepreneurship program, Beauty & You India, in partnership with Nykaa and Startup India. The company is not just selling EU products in India but investing in local innovation, partnerships, and consumer‑centric offerings, signalling a position for long‑term growth ahead of trade shifts like the India–EU FTA. It appears that L’Oréal and Estée Lauder and others are racing to scale in India amid global trade uncertainty with other major regions like the US.

Conversely, Indian cosmetics brands now gain preferential access to the EU market, where demand for natural, Ayurvedic, and sustainable beauty products is accelerating. This creates opportunities for established Indian exporters such as: 

– Forest Essentials, which has already made inroads into Europe with its luxury Ayurveda-inspired skincare. The brand has adapted its packaging to meet EU sustainability standards, using recyclable materials and minimizing single-use plastics. 

– Kama Ayurveda, known for its heritage-driven formulations, which has begun expanding into select EU markets. To comply with EU regulations, Kama has reformulated certain products to meet preservative and allergen guidelines while retaining its Ayurvedic authenticity. 

– Biotique, with its mass-premium Ayurvedic positioning, which benefits from reduced trade barriers and easier compliance pathways. Biotique has invested in EU-compliant labelling and certification to strengthen its export readiness. 

Regulatory Alignment 

The FTA emphasizes rules-based trade, including harmonization of product safety, labelling, and sustainability standards. This streamlines compliance for Indian exporters, who previously faced complex EU regulations, while ensuring European consumers receive products that meet stringent safety benchmarks. 

Innovation and Collaboration 

The agreement encourages joint R&D and technology transfer, particularly in areas like green chemistry, biotech-driven actives, and sustainable packaging. Indian raw material suppliers—already strong in botanicals and naturals—can now collaborate more seamlessly with European formulators, creating hybrid innovations that blend tradition with science. 

Strategic Outlook 

The FTA will be sent to the European Council and Parliament, and India’s Cabinet, for approval before it takes effect. For cosmetics, the EU–India FTA is more than a trade deal—it is a gateway to global competitiveness. By lowering barriers and fostering collaboration, it positions India as a hub for sustainable beauty innovation while giving European brands deeper access to one of the world’s fastest-growing markets. 

This historic agreement signals a new era where cosmetics trade is not just about products but about shared values of transparency, sustainability, and consumer trust.