India Herbal Shampoo - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

The India herbal shampoo market size is valued at USD 396.5 million in the current year and is expected to register a CAGR of 10.39% over the next five years.

Key Highlights

• The herbal shampoo market in India is mainly driven by increased consumer spending on personal grooming and hygiene products. The Indian personal care industry has matured significantly in the last few years due to e-commerce penetration, a significant rise in disposable incomes, and last-mile access to consumers, especially in tier 2 and 3 cities. Synthetic shampoo is generally made with surfactants, and its prolonged use can lead to severe effects, such as scalp irritation, loss of hair, drying of hair, and eye irritation. Therefore, the growing awareness among consumers about the health impacts of chemicals in standard shampoo products is boosting the demand for herbal shampoos prepared from natural ingredients.
• Due to the country's tropical climate and high pollution levels, along with the stressful lifestyle of individuals, hair-related issues, such as hair fall, dandruff, and dryness, have become more prevalent among Indians. This, in turn, drives the demand for herbal shampoos on account of their insignificant side effects and inexpensive nature. Leading players are focusing on innovating products to retain their customer base and gain a stronghold in the market. For instance, in April 2023, Tamil Nadu Medical Plant Farms and Herbal Medicine Corporation (TAMPCOL) launched cost-effective herbal beauty products, including anti-dandruff shampoo made with traditional herbs. Therefore, the factors mentioned above are anticipated to provide a positive thrust to the market during the study period.

India Herbal Shampoo Market Trends

Inclination Towards Personal Care Products with Natural Ingredients

• The rising beauty and hygiene consciousness among individuals is complementing the growth of the Indian personal care industry. E-commerce penetration is another significant factor behind the escalating demand for personal care products, such as herbal shampoo. A survey by Nykaa, an Indian leading e-commerce company, shows that in the financial year 2022, about 27 million orders were placed via its website for beauty and personal care products. The increase in orders was almost ten times as compared to the previous year.
• Exposure to certain chemical ingredients, including antimicrobial agents, surfactants, and preservatives, generally found in synthetic shampoos, can impair different aspects of hair health. Therefore, consumers are shifting to herbal formulations as a safer alternative. In line with this, brands are making constant efforts through advertisements, promotions, and product demonstrations to spread awareness among consumers about the benefits of herbal extracts in shampoos.
• For instance, in January 2022, WOW Skin Science, a prominent personal care brand, urged people to shift to natural products with their latest campaign featuring Disha Patani - #AbNatureKiSuno. The campaign aims to educate and encourage consumers to give up harsh chemical-based products for herbal products.

Convenience Stores Segment Dominates the Market

• The convenience stores segment is the most preferred distribution channel for herbal shampoo in India. Independent small groceries and convenience stores dominate the Indian retail industry. Additionally, convenience stores have higher penetration compared to modern retail stores. The penetration rate of convenience store shoppers provides a platform for companies manufacturing herbal shampoos to reach a broader consumer base through attractive promotional strategies for retailers. Such factors have increased the sales of herbal shampoos across the country.
• Moreover, convenience stores have become essential retail outlets in semi-urban and rural areas where supermarkets and hypermarkets are less prevalent. As these stores are operational for longer hours than traditional stores, it is convenient for customers to procure the product quickly.
• Furthermore, the penetration rate of convenience stores provides a platform for manufacturing companies to reach a broader customer base with an extensive product portfolio. For instance, in 2021, 7-India Convenience Retail Limited, a wholly owned subsidiary of Reliance Retail Ventures Limited (RRVL), inked an agreement with US-headquartered 7-Eleven, Inc (SEI) for the launch of 7-Eleven convenience stores in India. These convenience stores offer various products, including beverages, snacks, and personal care goods.

India Herbal Shampoo Industry Overview

As per analysis, the Indian herbal shampoo market is concentrated and dominated by domestic brands and players. Some of the major players in the Indian herbal shampoo market include Dabur, CavinKare, Patanjali Ayurved, Himalaya Wellness, and Procter & Gamble Co., among others. With partnerships and a focus on distribution expansion strategies, players are consolidating their positions in the market. They are also emphasizing the launch of novel and innovative products, such as a professional and premium range of herbal shampoos, to retain their customer base and maintain a strong foothold in the market.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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