The hair oil market is one of the fastest-growing industries in India due to its massive demand. Hair oil is a commodity used in many Indian households on a daily basis. For Indians, hair care is essential, especially for women. Therefore, it is no surprise that the hair oil industry has the highest penetration and commands more than fifty percent of all hair care products used in India. 

Experts claim the hair oil market is growing at a rate of 5.43 percent, compounded annually, proving how big the hair oil market is in India. But greater penetration and a variety of products mean there are a lot of small and big players competing for the lion’s share of the market. 

Competition in the Oil Market

Many varieties have been coming up in the oil market, starting with the most common one, coconut oil. While many of these companies are involved in the hair oil market, most of them play to their strength and avoid experimenting with their products.

A reason for this is the sacredness that hair oil holds in India. For many families, hair oil is not just a product to apply to their hair but is a part of a tradition followed for generations. The standard depiction of an Indian family will almost always include a mother applying hair oil on her daughter’s hair. 

Due to its vast importance, the competition is equally enormous. There are various varieties of hair oil that vie amongst each other to find themselves a place on the consumer’s shelf.

Major Types of Hair Oil

• Coconut Oil: This is the segment that holds the majority of the shares in the hair oil market. It is partly because coconut oil has been used in India for centuries and is a favourite in the southern parts of the company.

• Amla Oil: Amla is revered in the Ayurveda for its nutritional properties, and therefore, it is not surprising to find amla hair oil as a staple in many households. Families in the northern part of the country particularly favour the amla oil.

New Trends in the Hair Oil Market

• Lighter oils: while conventional hair oils are fatter and heavier on the scalp, they are very uncomfortable when used daily. Therefore the popularity of lighter oils is growing in the market.

• Cooling Oils: Owing to India’s subcontinental weather, it is no surprise that cooling oils also enjoy a good amount of popularity in the hair oil market.

Big Players

Popular brands have been using the same formula with minor tweaks for decades and dominating the hair oil market. Since not much scope for experimentation resides in the market, these companies have created a seemingly unshakable foothold for themselves. 

The top three competitors in the hair oil market, according to leading research group Mordor Intelligence are:

• Marico’s Parachute: A name that has become synonymous with coconut oil in India, Marico’s Parachute is one of the country’s most popular authentic coconut oil. It is the first choice of most when it comes to coconut oil. This has made Parachute the most significant coconut hair oil market player. Many people consider it to be the best hair oil in India.

• Bajaj Almond Oil: The golden bottle with a brown label is preferred by most who would rather use lighter hair oil. The Bajaj Almond Oil has been the most prominent player in the almond hair oil market, and its aroma has won the hearts of many.

• Dabur Amla Oil: Dabur is known to create products close to the Indian sciences and roots. Dabur Amla Oil is another such product that promises the goodness of everything natural. It has been a constant when it comes to going for Amla oil, and its fame is similar to the Parachute hair oil, albeit in a different segment of the hair oil market.

Challenges in the Market

The hair oil market may have a few big players, but they are getting a run for their money due to the involvement of MNCs that bring in an array of non-oil hair care products along with different types of shampoos and other cosmetics.

This means that the hair oil market may soon undergo a transformation with a bit of innovation and other products coming into the picture. Consumers are also attracted to MNCs due to their brand value, like L’oreal, etc. This means that existing players in the market need to come up with better advertisements and marketing strategies to survive in the market.

Conclusion

With new cosmetics and hair products flooding the market in a battle to woo more customers towards using such products, hair oil companies have to invest more and more into research and development to create newer products for the masses.

Though the current trend shows that companies that have stuck to their roots and formulas are better performing with time, it shall also become a challenge for these companies to convince the new generation of customers to buy their products.

The reported growth of the hair oil market is definitely on the positive side, but the market share is imbalanced, and only a few prominent companies can control the trend in the market. But newer products that challenge standard conventions and go beyond just providing an authentic hair oil are undoubtedly changing the mind of the customers.

The new generation of customers is looking for products that offer more benefits while maintaining authenticity. To survive in a fast-paced market like India, established companies need to understand this trend and come up with products that better satisfy the needs of the new generation.