Starting a cosmetics business from scratch may sound challenging, but the truth is the beauty industry in India is booming like never before. According to Statista, the Indian cosmetics market is expected to cross ₹1.2 trillion by 2030, driven by skincare, natural products, and digital-first beauty brands. The best part? You don’t always need a huge budget—many successful entrepreneurs began their cosmetics journey with low investment and homemade formulations.
Today’s consumers are shifting towards organic skincare, cruelty-free makeup, and herbal haircare, creating endless opportunities for new brands to stand out. And if you’re wondering, “Can I really start a cosmetics business at home with small capital?” the answer is yes! With the right planning, legal steps, and smart marketing, you can launch a profitable brand without breaking the bank.
In this guide, we’ll walk you step by step through how to start a cosmetics business from scratch—even if you’re working with limited funds.
Why 2025 is the Best Time to Launch Your Cosmetics Business?
If you’ve been dreaming about starting your own cosmetics business, 2025 is the perfect year to take the leap. The beauty and personal care market in India is projected to grow at over 8.5% CAGR, with skincare and makeup leading the demand. What makes this year special is the rising consumer preference for natural, organic, and cruelty-free beauty products—a trend that small brands can tap into without competing head-to-head with global giants.
Another big advantage is the digital-first marketplace. Platforms like Instagram Shops, Amazon, and Nykaa have made it easier than ever to launch and scale a cosmetics business online, even with low investment. Plus, micro-influencer collaborations are cheaper yet highly effective in reaching target customers.
In short, 2025 offers the right mix of consumer demand, digital tools, and low entry barriers—making it the best time to start your cosmetics journey.
Steps on How to Start a Cosmetics Business from Scratch in India
Starting a cosmetics business in India can be exciting and profitable, especially with today’s booming beauty market. Here’s a simple step-by-step guide to help you get started even with low investment.
Step 1: Do Your Research to Find a Profitable Cosmetics Niche
Study current trends like organic skincare, herbal haircare, or vegan makeup. Pick a niche that matches both your interest and market demand.
Step 2: Create a Simple Cosmetics Business Plan
Outline your goals, target audience, product ideas, and budget. A plan gives you clarity and direction.
Step 3: Register Your Cosmetics Business and Get the Required Licenses
Obtain the necessary approvals under the Drugs and Cosmetics Act to legally sell your products in India.
Step 4: Develop Affordable Cosmetics Products or Use Private Label Options
Start small with homemade formulations or partner with private-label manufacturers to reduce costs.
Step 5: Design Your Cosmetics Brand Identity and Packaging on a Budget
Choose a memorable name, create an attractive logo, and design eco-friendly packaging that appeals to customers.
Step 6: Set Up Sales Channels to Sell Cosmetics Online and Offline
Sell through eCommerce sites like Amazon, Flipkart, or your own website, while also exploring local shops and salons.
Step 7: Promote Your Cosmetics Business with Low-Cost Marketing Strategies
Use Instagram, YouTube, and influencer collaborations. Content like tutorials and reviews can attract loyal buyers.
Step 8: Build Customer Trust and Loyalty for Your Small Cosmetics Brand
Provide quality products, encourage reviews, and offer rewards or discounts to retain customers.
Step 9: Scale Your Cosmetics Business and Increase Profits Step by Step
Once established, expand your product range, enter wholesale markets, and explore export opportunities.
By following these nine steps, you can confidently launch and grow your cosmetics business in India without needing a huge investment.
Why Cosmetics Business is a Profitable Choice in Today’s Indian Market?
The cosmetics business has become one of the most profitable ventures in India, thanks to rising consumer demand and evolving beauty trends. According to industry reports, the Indian cosmetics and personal care market is projected to grow at a CAGR of over 8%, reaching billions in the next few years. This growth is driven by increasing awareness about skincare, makeup, and grooming, not just among women but also men.
What makes the cosmetics business especially attractive is the shift towards natural, herbal, and cruelty-free products. Modern consumers are more conscious about what they apply to their skin, opening opportunities for startups that focus on authenticity and quality.
The rise of digital platforms has also reduced entry barriers. Entrepreneurs can now sell through Instagram Shops, Amazon, or Nykaa without investing heavily in physical stores. With profit margins ranging from 30% to 60%, the industry allows even small businesses to earn well.
In short, the cosmetics business in India is booming because of strong demand, changing lifestyles, and low-investment entry opportunities.
Conclusion:
Starting a cosmetics business from scratch may seem overwhelming at first, but with the right steps, it can become one of the most rewarding ventures in today’s booming beauty market. From researching a profitable niche and creating a simple business plan to building your brand identity and setting up affordable sales channels, every step brings you closer to building a successful cosmetics brand. Remember, you don’t need lakhs to begin—many entrepreneurs in India have started small and scaled their businesses with smart strategies.
If you’re serious about turning your passion for beauty into profit, now is the best time to take action. For more helpful guides, fashion insights, and women-focused business tips, visit HerDuniya—your trusted space for ideas and inspiration.
Take the first step today, start small, stay consistent, and watch your cosmetics business grow into something truly remarkable.