India’s consumption sector continues to evolve rapidly – but the headline growth numbers often hide important shifts happening within categories. Our recent channel checks and industry conversations highlight a clear trend: consumer preference is no longer moving uniformly toward either “science-based” or “natural” propositions. Instead, each category is charting its own path, creating both winners and laggards.
Personal Care: Naturals Regain Ground in Oral Care
In oral care, the natural and ayurvedic segment has strengthened its position meaningfully over the past few years. Consumers increasingly associate naturals with long-term health and ingredient transparency. As a result, brands with strong ayurvedic credentials—particularly Dabur—have steadily gained share from traditional science-based players like Colgate.
In the recent Q2 FY26 earnings call, Dabur CEO has explained on this,
“The Herbal segment growth in the category outpaced the non-herbal segment by 770 bps, underscoring the strong and sustained consumer shift towards natural and herbal oral care products. Leveraging this shift, our portfolio outperformed overall Toothpaste category growth, resulting in robust market share gains.”
The trend reflects a broader shift toward “clean” and “heritage-led” products in categories linked to daily wellness.
Beauty & Skincare: Science is Winning
Conversely, the beauty and skincare segment is witnessing an opposite movement. Here, efficacy, active ingredients, and evidence-backed formulations are driving consumer choice. Brands such as Minimalist, with their science-led positioning and high-performance actives, have been outperforming natural-first brands like Just Herbs. Younger consumers especially prefer clarity around ingredients, measurable outcomes, and dermatologist-led recommendations—tilting the balance decisively toward clinical and science-backed offerings.
HUL acquisition of 90.5% stake in Minimalist with a total payout of Rs. 2,706 crores shows where the segment is heading.
HUL management commentary on Minimalist
“Minimalist continues to demonstrate strong business momentum. In this quarter as well, the brand delivered robust double-digit growth. We remain confident in Minimalist’s potential to contribute significantly to our premium beauty portfolio.”
Implication: Consumption is No Longer a Single Narrative
The key message for investors is that India’s consumption story is becoming more nuanced:
- Not all “natural” brands win across categories.
- Not all “science-based” brands lose to naturals.
- Competitive positioning now depends heavily on category context, consumer mindset, and the problem the product is solving.
Companies that align their product architecture with the specific expectations of each category are best placed to sustain market share and pricing power.
Our View
For long-term investors, understanding these micro-trends is increasingly essential to identify sustained winners within the broader consumption basket.
