Estee Lauder fully acquires Forest Essentials
What's the story
Estee Lauder Companies has announced its plan to acquire an additional 51% stake in Indian luxury beauty brand, Forest Essentials. The deal is expected to be completed in the second half of 2026. It marks the end of an 18-year-long partnership with the Ayurvedic skincare and haircare brand founded by Mira Kulkarni. The acquisition will strengthen Estee Lauder's position in emerging markets like India, which is seen as a potential hub for luxury beauty products.
Partnership history
Estee Lauder's investment journey with Forest Essentials
Estee Lauder first invested in Forest Essentials in 2008, acquiring a 20% stake. This was later increased to 49% in 2013. The brand has since grown into a leader in India's prestige skincare market, with around 200 standalone stores and low double-digit net sales growth. We expect to continue that and India is becoming an increasingly bigger contributor to the growth algorithm, said Stephane de La Faverie, President and CEO of The Estee Lauder Companies.
Market growth
India's luxury beauty market on the rise
India's premium beauty market currently accounts for about 10% of total beauty spend, but it is growing fast. According to Kearney, the country became a billion-dollar luxury beauty market in 2024 and is expected to reach $1.6 billion by 2028 and $4 billion by 2035 at a CAGR of 14%. This makes India one of the fastest-growing markets in Asia and globally.
Consumer reach
Estee Lauder's strategy to reach beyond affluent consumers
To reach beyond affluent consumers, Estee Lauder has been pushing smaller product packs in its other brands. "One thing we are doing meaningfully is the mini strategies. Smaller sizes allow us to touch more consumers," de La Faverie said. This strategy aims at India's growing middle class, which is expected to account for a large share of new global middle-income consumers by 2030.
Brand identity
Commitment to Indian identity post-acquisition
Post-acquisition, Forest Essentials will continue to be headquartered and operated out of New Delhi under Kulkarni and her son Samrath Bedi. "Estee Lauder brings exceptional expertise in prestige beauty, but they also respect the integrity of what we have built in India," said Kulkarni. "We feel confident that we are working with a partner who sees our Indian identity not as a limitation, but as our greatest strength."