Mamaearth becomes India's 3rd largest skincare brand, says Euromonitor International

Honasa Consumer Ltd.'s flagship brand, Mamaearth, has climbed to the third position among the leading skincare brands in India, according to a report by Euromonitor International.

The ranking showcases Mamaearth's significant market presence in the rapidly evolving Indian beauty and personal care industry.

According to Euromonitor's latest report, the brand also advanced to the 9th position overall among the country’s beauty and personal care brands, improving from the 13th spot last year.

“We're thrilled to see Mamaearth making such a significant mark in the Indian beauty and personal care market. This recognition is a testament to our team's hard work, our commitment to creating natural, toxin free products for Indian consumers, and the trust they have placed in us," said Varun Alagh, Co-founder and CEO, Honasa Consumer.

Growth of direct-to-consumer brands

The Euromonitor report emphasizes the increasing dominance of homegrown D2C brands in India’s beauty market. Mamaearth, which is widely known for its toxin-free and natural personal care products, has emerged as a prominent brand in this segment.

The success of these D2C brands highlights a shift in consumer preference toward homegrown, sustainable options that cater directly to customer needs.

Honasa Consumer Ltd., the parent company, has been instrumental in driving this growth, leveraging its expanding portfolio to strengthen its position in the industry.

Honasa consumer’s expanding brand portfolio

Apart from Mamaearth’s success, other brands under Honasa Consumer are also gaining traction. The Derma Co. has also entered the top 20 skincare brands in India and has become the largest active-based skincare brand in the country.

Additionally, brands like Aqualogica and Dr. Sheth’s are also emerging in the competitive sunscreen market, further establishing Honasa’s influence in the Indian beauty sector.

"We're equally proud of The Derma Co.'s progress and glad that Indians are recognizing its value proposition. We are committed to building on this success across all Honasa brands and lead the next phase of the beauty and personal care space in the Indian market," Alagh said.

Honasa Consumer, which began with Mamaearth, now manages several other brands, such as The Derma Co., Aqualogica, Dr. Sheth's, and BBlunt, catering to diverse consumer needs.

Financial performance and market outlook

Mamaearth’s parent company, Honasa Consumer, reported a strong financial performance for the first quarter ending June 2024. The company achieved a 62.9% increase in its consolidated profit after tax (PAT), reaching Rs 40.25 crore.

Additionally, its revenue from operations rose by 19.28%, amounting to Rs 554.05 crore, up from Rs 464.48 crore in the same period last year. Honasa's stock performance also reflected its growth, with shares trading 3.22% higher.

Market analysts remain optimistic, with a majority giving a 'buy' rating, suggesting a potential upside of 25.3% over the next 12 months.