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Hair oil market in India

Hair oil market in India
Dreaming for bright career is the first priority of a young student and rightly so; you have taken a right decision to do MBA but you are expected to know and understand or at least have some idea of different markets.
This general awareness article on ‘hair oil market’ will help you in WAT/Essay/GD and PI also.
Read:  Hair oil market in India
Hair Care industry within the FMCG personal care segment continues to do well over some time now. Of the estimated Rs 1, 611 billion FMCG market in India, hair care products make up approximately 8%, of the total according the Nielsen Retail Audit Report. 
Out of the above hair-care industry hair oils commands close to 50% of the hair care market in India. As per industry estimates hair oil market size in India is pegged at around Rs 8,000 crore with coconut-based oils accounting for 46 per cent. Non coconut or perfumed oil segment has a market size of Rs 4,283 crore. 
Major companies such as Hindustan Unilever, Marico, Dabur, Emami, P&G and Bajaj comete fiercely in the Indian market. With hair oil having one of the highest market penetrations at 90%, most companies had been playing to their strengths so far.
While coconut-based oils were dominated by Marico's Parachute, Bajaj and Dabur are traditionally focused on almond and amla, respectively. Now MNC’s are also foraying into this segment, example being L'Oreal.
As far as pricing is concerned average prices for hair oil products have risen from Rs. 22.25 per 100 ml in 2008 to Rs 40 per 100 ml in 2013 according to the IMRB trade report.Hair oiling is a traditional habit of Indians. Hair oil is primarily used as pre-wash nourishment. Some people also use hair oil after bath as a conditioner.
Hair oil is perceived to provide benefits of nourishment, strengthening hair, faster and better growth and reducing the problem of falling hair. Some consumers perceive that massaging hair oil has a cooling impact on the head. Cosmetically, hair-oil is perceived to aid hair styling, as hair remain straight, soft and shining after applying oil.
There are four main categories of hair-oils in India:
i. Coconut oils: it has the highest market share among all other categories. It is very popular in the south.
ii. Amla hair oils: The heavy amla hair oil market is primarily an urban driven market and tends to be geographically concentrated in the northern parts of the country.
iii. Light hair oils: it has experienced significant growth in recent years as consumers opt for lighter, more modern hair oil products.
iv. Cooling oils: It is meant for cooling the scalp during the harsh summer months. The ingredients in the cooling oils cause immediate relief by cooling the scalp.
Among all, light hair oil is the fastest growing segment with a CAGR of 25 per cent in the last 5 years whereas the overall hair oil market has grown by 19 per cent over the same period. Around 40 per cent of the light hair oil sale comes from the rural market, as per Nielsen retail report 2013.
 Hair oil market in India
Source: Nielsen retail report 2013.
Year 2013 is a watershed year as for the first time; the coconut oil market share has gone below 50%. New generation is going for other alternatives like value-added light hair oils.
Moreover hair oil market is facing a tough fight from more sophisticated shampoos and non-oil hair care products. These new substitutes promise to clean, moisturize, nourish and maintain one’s hair as well. The gen-X seems to be attracted towards it. To fight these substitutes, hair-oil companies have come out with light-hair oils like olive oil and they are doing very well.
India is a market with multiple and diverse segments. As some consumers go up the value-chain, there is still a huge chunk which will continue to use the coconut oil. The good old ‘champi’ or hair massage will continue to be popular. Growing stress levels will also give a push to the good old traditional uses of hair oil.
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