Project report for Hair oil

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Introduction

Now in India , The growing trend for usage of professional hair products, the increasing hair damage and hair fall problems due to pollution, the increasing aging population, and the growing consumer awareness about natural products are the driving factors for the professional hair oils market. The high social media presence of a large youth population, who constantly keep up with the changing hair care trends are influencing the growth of the market. Various trends glorified by many celebrity bloggers and stars also promote many professional hair care methods and therapies using professional hair oils. The online retail segment is growing at a fast pace and is turning out to be a major sales channel for professional hair oils. Hair oil is oil applied to the hair as a cosmetic, conditioner, styling aid, restorative or tonic. Different hair oils have been used for many different purposes such as hair growth, health, dryness, scalp, or to fix damaged hair. There are various forms of hair oils that can be applied such as natural hair oils which include traditional hair oils like coconut, castor, or almond oil. Mineral and vegetable oils are used to make a variety of commercial and traditional hair oils. Coconut oil is a common ingredient and brands which used this include Macassar oil and Parachute. Other vegetable oils used on the hair include almond, argan, babassu, burdock, Castor, and tea seed. Going the more traditional route, natural oils are used more commonly as cosmetic products on the scalp. Each oil has its own use as each one provides different benefits to the scalp. Natural Oils come from natural resources that are very high in nutrients such as vitamin, fatty acids.

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Market potential & Strategy

The global professional hair oils market was valued at INR 707, 520 Crores in 2019 and is estimated to reach INR 93, 81, 600 Crores by 2023, growing at a CAGR of 4.87% from 2018 to 2023. The India hair oil market is projected to grow, witnessing a CAGR of 5.43% during the forecast period 2020-2025. Hair oils are considered an essential source of hair care and treatment and have been consistently consumed by a major population of the country. Coconut oil comprises the main segments of the hair oil market, while others account for relatively minimal shares. The extensive distribution efforts by the companies have ensured that the product reaches to even more remote places and untapped rural markets. Rural India has witnessed a rise in purchasing power over the last few years and has been switching from cheaper hair oils to almond-based and other perfumed light hair oils. Celebrity endorsement of individual professional hair oil brands coupled with the growing adoption of professional hair products in the fashion industry has also drastically driven the market growth.

Value-added hair oils are hair oils that are specially designed to provide extra care for hair. A significant share of Indian consumers are switching to value-added hair oils for hair-related problems such as hair fall and damage caused by factors such as hair coloring. Moreover, rising affordability factors is increasing the market cap for value-added hair oils as they are premium products and highly priced. Value-added hair oil are gaining high popularity also because of the benefits they offer through the inclusion of natural ingredients in the formulation.

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