06/30/2020 | Press release | Distributed by Public on 06/30/2020 03:40
The haircare sector in India is forecast to grow from INR308.7bn (US$4.4m) in 2019 to INR501.4bn (US$6.5m) by 2024, recording a compound annual growth rate (CAGR) of 10.2%, says GlobalData, a leading data and analytics company.
GlobalData's report, 'India Haircare - Market Assessment and Forecasts to 2024', reveals that the conditioner category led the sector accounting for value sales of INR96.7bn (US$1,584.5m) in 2019. It was followed by shampoo and hair colorants categories.
Styling agents category is forecast to register the fastest value growth at a CAGR of 13.2% during 2019-2024 while the hair colorants category is expected to gain maximum market share in value terms during the same period.
Susmitha Bynagari, Consumer Analyst at GlobalData, says: 'While the hair care sector in India still remains elemental with respect to regime and types of products purchased, steady economic growth and disposable incomes, and growing awareness particularly among the urban consumers, are driving the demand for premium hair styling products including hair sprays, hair gels and hair colorants, and conditioners.'
The per capita consumption (PCC) of haircare in India is marginally higher compared to the regional average but lower compared to the global average. It stood at 1.7 units in 2019 and is expected to increase to 2.3 units in 2024.
Marico Ltd., Unilever and L'Oreal SA are the top three companies in the Indian haircare sector accounting for a combined value share of 45% in 2019.
Private labels, which account for a small share, are growing at a higher CAGR than the brands in the sector. Among the distribution channels, convenience stores led the sector with a value share of 55.3% in 2019.
Bynagari concludes: 'Growing concerns about hair fall due to hereditary, dietary, environmental and stress factors is fuelling the demand for products that claim to treat hair loss. Manufacturers have attempted to harness the popularity of local and natural ingredients such as bhringraj and tulasi in haircare products such as shampoos, which are expected to drive demand in the future.'