The increasing adoption of smart washing machines and automated detergent dispensers is transforming the way consumers approach fabric care.
Consumer Goods & Services
India Hair Care Market Witnessing Intense Competition Among FMCG Giants
The desire to look fabulous has led to an increasing demand for smooth, silky, and shiny hair, making hair care an essential part of personal grooming. This growing interest presents significant opportunities for the hair care market, which now offers a wide range of products, including hair oils, shampoos, hair colors, and styling products. The youth’s obsession with maintaining a stylish and fashionable appearance has further fueled the demand for innovative hair care solutions. Consumers today seek not just basic hair maintenance but also products that enhance aesthetics and provide specialized benefits such as nourishment, repair, and protection.
According to the India Hair Care Market Outlook, 2027-28 published by Bonafide Research, the Indian hair care market is expected to grow at a CAGR of more than 8% in value terms during the forecast period from 2022-23 to 2027-28, reaching over ?44,800 crores by the end of 2027-28. The market is segmented into different product types, including hair oils, shampoos, conditioners, serums, hair colors, and styling products. Among these, hair oils and shampoos dominate the market as they cater to both urban and rural consumers. On the other hand, styling products, hair colors, and serums are more popular in urban areas, where fashion-conscious consumers drive demand.
The increasing urbanization trend, coupled with concerns about pollution, hair loss, and UV damage, has shifted consumer preferences towards advanced hair care products. While traditional hair oils and shampoos continue to be widely used, there is a growing inclination toward multifunctional products such as conditioners, serums, and leave-in treatments that provide enhanced benefits like hydration, revitalization, and damage repair. Consumers now expect hair care brands to offer solutions that not only cleanse and nourish but also strengthen, smoothen, and protect against environmental stressors.
Furthermore, the men’s grooming segment is witnessing rapid growth as male consumers become more conscious of their appearance. Previously dominated by women, the hair care market is now seeing a rise in products specifically designed for men, including styling gels, waxes, and hair-thickening solutions. The trend of personal grooming among men is expected to further propel the demand for hair care products in the coming years.
The affordability and accessibility of hair care products have also played a crucial role in market expansion. Companies have introduced sachet packaging for premium products, allowing lower-income consumers to experience high-quality hair care at a lower price. This strategy has been particularly effective in rural markets, where single-use or small-sized packs make it easier for consumers to adopt hair care products without committing to full-sized purchases. Leading brands such as Godrej’s Expert Rich Cr?me have capitalized on this trend by launching hair color sachets at an affordable price of ?30, making hair coloring a routine rather than a luxury.
The shift towards natural and herbal-based products has been another driving factor in the Indian hair care market. Consumers are increasingly aware of the harmful effects of chemicals, leading to a surge in demand for plant-based and organic hair care solutions. Herbal brands like Patanjali and Himalaya have gained popularity by offering natural alternatives infused with ingredients such as coconut oil, amla, shikakai, and aloe vera. Additionally, the growing trend of veganism has influenced the market, with consumers seeking cruelty-free and vegan-certified hair care products. Brands that incorporate botanical and vegetable-based ingredients into their formulations are likely to gain an edge in the competitive landscape.
To cater to diverse consumer needs, leading companies have adopted product differentiation strategies. Hindustan Unilever Limited (HUL), for instance, offers Clinic Plus as an affordable shampoo variant targeting price-sensitive consumers, while Dove caters to the premium segment by offering specialized benefits at a higher price point. Similarly, hair color brands use product proliferation strategies, introducing multiple shades and formulations to create differentiation and appeal to a wider audience. This approach allows companies to position themselves effectively across different price segments and consumer preferences.
As self-expression becomes more closely linked to hair care, hair styling products and hair colorants are gaining traction. Young consumers, particularly those aged 24 and under, are embracing hairstyling products to achieve different looks influenced by social media, fashion trends, and Western aesthetics. The demand for high-end styling solutions that offer salon-like effects at home has led to the introduction of innovative products such as hair mousses, setting sprays, and sculpting creams. Additionally, the rise of temporary hair colorants that allow users to change their hair color frequently—matching their outfits, occasions, or moods—has transformed hair coloring into an everyday fashion statement rather than a long-term commitment.
According to the India Hair Care Market Outlook, 2027-28 published by Bonafide Research, the Indian hair care market is expected to grow at a CAGR of more than 8% in value terms during the forecast period from 2022-23 to 2027-28, reaching over ?44,800 crores by the end of 2027-28. The market is segmented into different product types, including hair oils, shampoos, conditioners, serums, hair colors, and styling products. Among these, hair oils and shampoos dominate the market as they cater to both urban and rural consumers. On the other hand, styling products, hair colors, and serums are more popular in urban areas, where fashion-conscious consumers drive demand.
The increasing urbanization trend, coupled with concerns about pollution, hair loss, and UV damage, has shifted consumer preferences towards advanced hair care products. While traditional hair oils and shampoos continue to be widely used, there is a growing inclination toward multifunctional products such as conditioners, serums, and leave-in treatments that provide enhanced benefits like hydration, revitalization, and damage repair. Consumers now expect hair care brands to offer solutions that not only cleanse and nourish but also strengthen, smoothen, and protect against environmental stressors.
Furthermore, the men’s grooming segment is witnessing rapid growth as male consumers become more conscious of their appearance. Previously dominated by women, the hair care market is now seeing a rise in products specifically designed for men, including styling gels, waxes, and hair-thickening solutions. The trend of personal grooming among men is expected to further propel the demand for hair care products in the coming years.
The affordability and accessibility of hair care products have also played a crucial role in market expansion. Companies have introduced sachet packaging for premium products, allowing lower-income consumers to experience high-quality hair care at a lower price. This strategy has been particularly effective in rural markets, where single-use or small-sized packs make it easier for consumers to adopt hair care products without committing to full-sized purchases. Leading brands such as Godrej’s Expert Rich Cr?me have capitalized on this trend by launching hair color sachets at an affordable price of ?30, making hair coloring a routine rather than a luxury.
The shift towards natural and herbal-based products has been another driving factor in the Indian hair care market. Consumers are increasingly aware of the harmful effects of chemicals, leading to a surge in demand for plant-based and organic hair care solutions. Herbal brands like Patanjali and Himalaya have gained popularity by offering natural alternatives infused with ingredients such as coconut oil, amla, shikakai, and aloe vera. Additionally, the growing trend of veganism has influenced the market, with consumers seeking cruelty-free and vegan-certified hair care products. Brands that incorporate botanical and vegetable-based ingredients into their formulations are likely to gain an edge in the competitive landscape.
To cater to diverse consumer needs, leading companies have adopted product differentiation strategies. Hindustan Unilever Limited (HUL), for instance, offers Clinic Plus as an affordable shampoo variant targeting price-sensitive consumers, while Dove caters to the premium segment by offering specialized benefits at a higher price point. Similarly, hair color brands use product proliferation strategies, introducing multiple shades and formulations to create differentiation and appeal to a wider audience. This approach allows companies to position themselves effectively across different price segments and consumer preferences.
As self-expression becomes more closely linked to hair care, hair styling products and hair colorants are gaining traction. Young consumers, particularly those aged 24 and under, are embracing hairstyling products to achieve different looks influenced by social media, fashion trends, and Western aesthetics. The demand for high-end styling solutions that offer salon-like effects at home has led to the introduction of innovative products such as hair mousses, setting sprays, and sculpting creams. Additionally, the rise of temporary hair colorants that allow users to change their hair color frequently—matching their outfits, occasions, or moods—has transformed hair coloring into an everyday fashion statement rather than a long-term commitment.
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