HAIR CARE IN INDIA - ANALYSIS

Country Report | Jun 2022

KEY DATA FINDINGS Market Sizes

Retail value sales increase by 11% in current terms in 2021 to INR257 billion Sales of Hair Care
Styling agents is the best performing category in 2021, with retail value sales growing Retail Value RSP - INR million - Current - 2007-2026
by 33% in current terms to INR5.6 billion
Hindustan Unilever Ltd is the leading player in 2021, with a retail value share of 16%
257,433 Forecast
400,000
Retail sales are set to rise at a current value CAGR of 7% (2021 constant value CAGR of
2%) over the forecast period to INR368 billion
300,000
2021 DEVELOPMENTS

Early greying of hair and hair fall issues trigger growth of Ayurvedic
200,000
natural oils
Early greying of hair and hair fall have increased significantly compared with previous
generations. The key factors triggering these issues have been changes in diet,
100,000
pollution, increasing stress and the usage of hair care products containing chemicals.
Although the former three are addressable to some extent, there is still limited control
that a person can have on them. However, in terms of purchasing better hair care
products that contain natural ingredients, this is the easiest solution for consumers. 0
Hence, there has been a surge in demand for Ayurvedic hair care products such as oils 2007 2021 2026
and shampoos, and for products that are produced naturally. According to Euromonitor
International’s Voice of the Consumer: Beauty Survey, in 2021, 46% of respondents
mentioned that in terms of desired product features, while considering eco or ethically Sales Performance of Hair Care
friendly products for 2-in-1 shampoo/conditioner, they choose or prefer all natural % Y-O-Y Retail Value RSP Growth 2007-2026
ingredients. Taking note of this, in April 2022 Shahnaz Husain Group expanded its
portfolio of herbal products by launching both hair care and skin care products. Under
this, it launched hair cleansers and hair oils using natural ingredients such as
11.1% Forecast
sandalwood, jasmine, rose, aloe vera and almond. Furthermore, to support and 20%
promote research into and the development of traditional and natural products, the
government of India announced the setting up of the WHO Global Centre for
Traditional Medicine (GCTM) in April 2022 at Jamnagar, Gujarat. At the same time the 15%
government also announced the introduction of Ayush visas for internationals that are
seeking traditional treatments in India. All these factors will boost the availability of
natural hair care products, thus also benefiting demand during the forecast period. 10%

Return of social events allows for recovery of colourants and styling

5%
agents
In 2020, when the pandemic was unleashing its first wave in the country, the
government, as part of its measures to prevent the spread of COVID-19, restricted the 0%
mobility of people, which included restrictions on social events and gatherings. The
same restrictions were applied during the first half of 2021, from March to June, when
the second wave struck. With people isolated at home, they did not feel the need to -5%
2007 2021 2026
colour or style their hair as frequently. However, during the second half of the year the
pandemic situation stabilised, and in the last quarter of the year, when most Indian
festivals are scheduled and the wedding season starts, the situation remained calm,
resulting in the relaxation of mobility restrictions by the government. This allowed
people to step out and socialise, triggering the recovery of colourants and styling
agents during the year. Also, with some workplaces reopening during the second half
of 2021, either entirely or through a hybrid model, this also acted as a catalyst for
recovery. According to Euromonitor International’s Voice of the Consumer: Beauty
Survey, 36% of respondents in India in 2021 answered that they opt for hair colours or
dyes to improve the look or feel of their hair. During the forecast period, with the
pandemic situation stabilising, social events will return in full force, and so will offices
and schools. This will offer a strong opportunity for growth in colourants and styling
agents.

Inflationary pressures result in companies increasing the price of hair

oils
Hair oils has traditionally been a very competitive yet a stagnant product type, which in
the past saw single-digit growth. However, the pandemic, which strongly disrupted
supply chains, created inflationary pressure on players, resulting in price rises of 2.5%
to 7.5% on several hair oil products during 2021. The key reason for the price hike can
be attributed to rising prices of crude oil and crude derivatives, such as Light Liquid

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Paraffin (LLP), which is a key component in the manufacture of hair oils. Also, the rise in
prices of packaging materials such as paperboard also contributed to this decision.
Sales of Hair Care by Category
Retail Value RSP - INR million - Current - 2021 Growth Performance
Major players such as Dabur have increased the prices of most of their hair oil range,
including power brands such as Amla and Vatika. With the Russian invasion of Ukraine
2-in-1 Products
in early 2022, the easing of raw materials prices, such as crude oil, is unlikely in the near -
term. Therefore, during the forecast period it is projected that the prices of hair oils
Colourants
will continue to be high, which will result in an increase in value sales, even though 49,692.1
volumes are not expected to grow significantly.
Conditioners and Treatments
119,020.2
PROSPECTS AND OPPORTUNITIES Hair Loss Treatments
-
Competition in salon professional hair care to intensify Perms and Relaxants
-
Salon professional hair care experienced slowing growth from the start of the Salon Professional Hair Care
pandemic, as its crucial distribution channel, hair salons, was shut for brief periods in 12,644.9
both 2020 and 2021 due to lockdowns. Even when salons were open, many consumers Shampoos
chose not to use them, due to fear of contracting the virus. Although the losses were 70,436.3
mitigated to some extent due to selling through online platforms, growth in the Styling Agents
category was hampered, although some growth was seen in 2021 as infections eased. In 5,639.4
2022, it is projected that strong momentum will be seen, as the pandemic situation is 0% 20% 35%
projected to remain stable unless a new wave emerges. For this reason, companies are
becoming more aggressive in opening new salons and expanding their presence, which HAIR CARE 257,432.9 CURRENT % CAGR % CAGR
YEAR % 2016-2021 2021-2026
will boost sales of salon professional hair care products. For example, in April 2022, GROWTH
Nykaa is set to partner with Estée Lauder’s Aveda to open The Aveda X Nykaa salon,
which will offer a 100% vegan premium hair experience. The hair care offerings will
include haircuts, colouring and styling. Through this channel, Aveda will also offer clean
beauty products. From 2022, Myntra is also set to partner with L’Oréal Professional Competitive Landscape
Products Division to offer salon-inspired hair care products, covering a range of 60
products, including hair care solutions from L’Oréal Professional Paris, Matrix and
Biolage. The price range of these products is expected to be INR300-800 for hair oils, Company Shares of Hair Care
specialised shampoos, hair masks, deep conditioners, etc. As the pandemic situation % Share (NBO) - Retail Value RSP - 2021
continues to stabilise, it is projected that the performance of salons will only improve,
which will benefit sales of salon professional hair care products. Hindustan Unilever Ltd 16.4%
Marico Ltd 16.3%
Onion juice set to gain traction as an ingredient in hair care products L'Oréal India Pvt Ltd 8.1%
Onions have been used as an ingredient for cooking in Indian kitchens for centuries. Dabur India Ltd 7.2%
However, in addition to cooking, they have also been used to stop hair fall, as well as Procter & Gamble Home Pr... 6.5%
aid hair growth. The reason for this is that when onion juice is applied to the scalp, it
provides extra sulphur, which aids the growth of strong and thick hair, and less hair Emami Ltd 4.0%
loss. The sulphur from onions is also said to aid collagen production, which supports the Godrej Consumer Products... 3.9%
production of healthy skin cells and hair growth. According to Google Trends data, there
has been a strong surge in searches for onion oils in the past three years. This demand Bajaj Consumer Care Ltd 3.3%
from consumers has been recognised by companies, and there are several launches Patanjali Ayurved Ltd 2.5%
that have been seen which focus on addressing hair loss and ensuring growth, with
Hygienic Research Instit... 2.5%
onion juice being the key ingredient. For example, major fmcg companies such as
Marico, Emami and Bajaj Consumer Care have all launched onion-based hair oils, CavinKare Pvt Ltd 1.5%
alongside several direct-to-consumer (D2C) brands, such as Mamaearth and Wow Skin Himalaya Drug Co, The 1.5%
Science. Wow Skin Science also launched a shampoo that contains onion. Leading e-
commerce player Nykaa has not been far behind, as it launched onion-based hair oil Wella India Haircosmetic... 0.8%
under its Nykaa Naturals Hair portfolio in October 2021. During the coming years, it is Dey's Medical Stores Mfg... 0.7%
projected that several other companies will follow suit and introduce onion-based hair
Jyothy Labs Ltd 0.6%
care products.
Amway India Enterprises ... 0.5%
Demand for anti-pollution hair care products to rise as pandemic ITC Ltd 0.5%
situation stabilises Quest Retail Pvt Ltd 0.3%
The pandemic situation has been quite stable in the country since the second half of Mandom Corp 0.2%
2021. Although there was some concern about the Omicron variant, the situation has
Others 22.9%
remained calm. This has resulted in offices, colleges and schools reopening, leading to
increased mobility in consumers’ daily lives. In addition, social outings, holidays and
business travel have also started to return. This has resulted in people being exposed
to high levels of traffic on the streets once again, which is intensifying the demand for
anti-pollution hair care products, that claim to keep the hair healthy and prevent hair
fall or the greying of hair. D2C brand Detoxie has already launched an anti-stress, anti-
pollution hair care product range to address this issue. With mobility restrictions
continuing to ease, this situation is not expected to change, which will result in a
continued increase in demand for anti-pollution products.

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 Brand Shares of Hair Care
% Share (LBN) - Retail Value RSP - 2021

Parachute Coconut Oil 9.2%

Clinic Plus 5.5%
Dove 5.2%
Head & Shoulders 3.8%
Bajaj 3.3%
Dabur Amla 3.2%
Himani Navratna 2.7%
Pantene 2.7%
Sunsilk 2.5%
Godrej Hair Expert 2.3%
Garnier Color Naturals 2.1%
Super Vasmol 2.1%
Dabur Vatika 2.1%
Parachute Advanced Jasmi... 1.9%
Nihar Shanti Amla 1.7%
L'Oréal Professionnel 1.7%
Kesh Kanti Hair Oil 1.5%
Nihar Naturals Perfumed ... 1.4%
Clear 1.2%
Others 44.0%

5-Year Trend
Increasing share Decreasing share No change

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