Growing it out: room for hair care to expand in India

By Lucy Whitehouse

- Last updated on GMT

Growing it out: room for hair care to expand in India

Related tags Hair care Marketing

India has got room for further hair care growth, according to market analysts at Trefis, and professional salon retail looks set to drive this expansion.

Key players in the sector like L’Oreal are expected to increase their share of the professional salon sector by expanding distributor relationships, say the market researchers.

Strong demand for hair colourants in the country will also boost the wider sector’s predicted growth, according to fellow firm Mintel.

Hair dominating

Already strong in the country’s first tier cities, consumers in India are set to take up salon hair care product consumption across second and third tier cities too, thanks to the increasing influence of a younger consumer generation, and urbanisation across the country.

Franchise salons are poised to offer big growth opportunities, and a $1 billion growth in the market is expected by 2015, according to Trefis.

It’s not just professional products expected to boost hair care performance though: lower-priced products are expected to profit from growing consumer demand for fast moving goods.

"Driven by growing consumption in rural and semi-urban areas, the FMCG market is set to double from $14.7 billion in 2008-09 to $30 billion in 2014,” ​Manoj Mehta, chairman, ‘International Beauty Mart' 2014, told Cosmetics Design.

Hair colourants may well lead this boom, with market research firm Mintel’s predicting that India will post the best growth in Asia Pacific for 2013.

In the region elsewhere

India’s hair care growth parallels that seen in fellow Asian markets.

According to the market analysts at Trefis, the largest market for hair colourants in Asia Pacific at present is Japan, with $1 billion sales in 2012, and hair care has traditionally been particularly strong in the region.

However, Korea is joining India in mobilising with hair care now.

According to global consumer panels firm Kantar Worldpanel, Korea's hair-product market is worth W2.5 trillion, reports The Chosunilbo.

Consumers are increasingly seeing hair care products as an ‘affordable luxury’, and US cosmetic brand Aveda's sales of high-end shampoos and conditioners are rising 30% in Korea every year.

Men are doing their bit in the sector rise: according to a survey carried out by L’Oreal, 13.5% of Korean men splash out on hair dye or hair products every month to manage or prevent hair loss or greying.

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