Hair Oil Market Size (2023 - 2030)

The Global Hair Oil Market was valued at USD 1.8 Billion and is projected to reach a market size of USD 2.8 Billion by the end of 2030. Over the forecast period of 2023-2030, the market is projected to grow at a CAGR of 5.9%.

Hair oil is a personal care product primarily composed of oil-based ingredients, formulated to enhance hair health and appearance. It serves multiple purposes, including scalp nourishment, conditioning, styling aids, and hair problem remedies, such as preventing hair loss and dandruff. Various hair oils, both commercial and traditional, are crafted using base oils like vegetable and mineral oils. These oils are infused with extracts like holy basil, rosemary, aloe vera, and more, often tailored to suit different hair types. In addition to addressing common hair concerns like hair loss, premature greying, and dandruff, hair oils offer comprehensive solutions for various hair-related issues. Medicated hair oils aid in hair regrowth, stimulate scalp blood circulation, enhance strength and shine, and provide a soothing post-application effect. Hair oils are particularly effective for revitalizing hair exposed to dust and pollution, effectively combating frizz and damage. Manufacturers are adapting to changing consumer preferences and expenditure patterns by introducing product innovations, including packaging modifications. Treatment oils designed to prevent hair loss, add shine, and reduce frizz are available in dropper packaging for precise application. For added convenience and portability, companies now offer hair oil products in travel-sized packaging options such as sachets, deluxe samples, and mini bottles. The rising incidence of hair-related conditions and ailments like alopecia and scalp inflammation has led to an increased demand for medicated herbal hair oils. This trend is expected to drive the demand for essential hair care products in the foreseeable future.

Key Market Insights:

The market's growth is primarily fueled by the increasing awareness of the wide range of hair care products available to consumers. People are becoming more discerning, choosing hair oils that match their specific hair type, whether it's dry, silky, or another type. Hair oils are instrumental in promoting hair length and strength, contributing significantly to market expansion.

Modern hair oils often incorporate various plant extracts such as holy basil and aloe vera, making them highly sought-after for their nourishing properties. Consequently, manufacturers are placing a strong emphasis on producing medicated hair oil products to address various hair-related problems that individuals encounter. A rising incidence of hair-related conditions like Alopecia and Telogen effluvium among the population is expected to boost the global demand for medicated hair oils. Furthermore, evolving trends in hairstyling are stimulating the need for innovative hair care products.

Consumers are increasingly turning to on-demand videos for insights into hair care products and treatments, further propelling market growth. Additionally, a shift in consumer preferences towards herbal-based hair care products is amplifying the demand for hair oils made from natural ingredients. Companies are responding to this trend by offering personalized and customizable hair oil solutions tailored to individual hair types and concerns. The advent of e-commerce platforms has greatly expanded consumer access to hair oil products, resulting in increased online sales and marketing efforts.

Global Hair Oil Market Drivers:

Increasing hair-related concerns among consumers is propelling the growth of the Global Hair Oil Market

The rising prevalence of common hair issues such as hair loss, dandruff, premature graying, thinning hair, and scalp problems has prompted individuals to actively seek effective solutions. Hair oils, enriched with nourishing ingredients and therapeutic properties, have garnered widespread popularity as essential tools in addressing these concerns. Consumers are proactively seeking hair oil products tailored to their specific hair types and issues. This heightened awareness of the importance of hair care has stimulated a thriving market for various types of hair oils, including medicated and herbal options, to comprehensively tackle these problems. As people continue to prioritize the health and appearance of their hair, the demand for specialized and innovative hair oil products is expected to remain a driving force in the market's sustained growth.

Growing consumer awareness and the wide availability of the products is fueling the Hair Oil Market

With greater knowledge about the advantages of using hair oil and its ability to tackle various hair-related issues, individuals are actively seeking specialized solutions that cater to their specific hair types and concerns. In response to this demand, manufacturers are offering an extensive range of hair oil products, encompassing medicated choices, herbal formulations, and those enriched with natural extracts. This extensive product diversity empowers consumers to choose the most appropriate hair oil for their unique needs, whether it's to combat hair fall, treat dandruff, stimulate hair growth, or maintain overall hair health. As consumers continue to place a premium on their hair care routines and explore innovative hair oil solutions, the interplay of heightened awareness and product variety is poised to be a driving force behind the continued growth of the hair oil market.

The presence of online platforms is augmenting the growth of the Hair Oil Market

The digital era has ushered in a transformation in the way consumers shop for personal care products, and hair oil is no exception. Online marketplaces and e-commerce platforms have made hair oil products readily accessible to a global audience. Consumers can now explore and purchase a wide variety of hair oils from the comfort of their homes, with the convenience of doorstep delivery. This online accessibility has expanded the reach of hair oil brands and facilitated marketing efforts, leading to an uptick in online sales. Additionally, the wealth of information available online allows consumers to research and compare products, fostering informed decision-making. As the trend of online shopping continues to surge, the hair oil market is poised to benefit from this digital revolution, reaching a broader clientele and sustaining its growth momentum.

Global Hair Oil Market Opportunities:

The hair oil market is witnessing a growing demand for personalized products that can address individual hair types, concerns, and preferences effectively. Manufacturers have the opportunity to tap into this trend by providing customizable formulations and ingredient choices, enabling consumers to create bespoke hair oils tailored to their unique needs. Moreover, the surge in interest surrounding herbal and natural hair care products offers brands the chance to develop and promote hair oils enriched with botanical extracts and organic components. Sustainability and eco-consciousness have also emerged as key drivers in this market, creating room for eco-friendly packaging and environmentally responsible manufacturing practices. Additionally, venturing into untapped markets, both geographically and demographically, holds promise, as emerging economies and diverse consumer bases increasingly embrace hair care solutions. In summary, the hair oil market is ripe for innovation and personalization, making it an attractive arena for brands to explore fresh opportunities while meeting the evolving preferences of consumers.

Global Hair Oil Market Restraints and Challenges:

The hair oil market is facing a challenge due to the rising demand for convenient, non-greasy, and modern hair care products presented in innovative formats. Urban consumers, particularly those living in metropolitan areas, are shifting towards hair care solutions that are easier to use and align with the latest trends, resulting in a decline in traditional hair oil usage. For example, teenagers and young adults between the ages of 18 and 24 have expressed concerns that hair oils make their scalps greasy and require them to stay indoors for some time after application, causing them to avoid using such products on busy days. To accommodate their hectic schedules, consumers are seeking time-saving and effortless solutions that also offer relaxation benefits. Furthermore, consumers in smaller towns are increasingly influenced by the consumption patterns of metropolitan areas, driven in part by greater internet connectivity. This trend poses a risk of losing customers in lower-tier cities and is acting as a constraint on the market's revenue growth.

HAIR OIL MARKET REPORT COVERAGE:

Hair Oil Market Segmentation: By Product Type

• Coconut Oil

• Castor Oil

• Argan Oil

• Almond Oil

• Amla Oil

• Others

In 2022, the coconut oil segment emerged as the dominant player, capturing the largest share of revenue, exceeding 25% of the global market. This surge in demand can be primarily attributed to South Asian consumers who favor coconut oil for their hair care needs. Coconut oil is renowned for its richness in lauric fatty acids and its strong affinity with hair proteins, enabling it to swiftly penetrate the hair shaft. Moreover, it stands out as one of the top choices for preventing protein loss in both damaged and healthy hair. With its low molecular weight, coconut oil excels in deep conditioning and effective hair shaft penetration, making it a versatile and suitable option for a wide range of hair types. Its deep conditioning properties provide natural protection while enhancing hair health.

The argan oil segment is projected to exhibit the fastest growth throughout the forecast period. Also known as "liquid gold," argan oil is derived from the nuts found within the fruit of the Argania Spinosa tree. Packed with linoleic fatty acids, antioxidants, palmitic and stearic acids, as well as vitamins A and E, argan oil is a potent asset for promoting healthy hair. Particularly beneficial for weakened and damaged hair, often caused by the use of permanent dyes, it aids in repairing hair, reducing breakage, and minimizing split ends with regular application.

Hair Oil Market Segmentation: By Type

• Light Hair Oil

• Heavy Hair Oil

• Cooling Hair Oil

• Others

In 2022, the light oil segment emerged as the dominant force in the market, capturing the largest share of revenue. Light oils are renowned for their versatile applications and non-greasy properties, making them a preferred choice for various hair care needs. These oils are suitable for overnight treatments, offering deep conditioning benefits without leaving a heavy residue. They can be applied to dry hair to provide essential moisture, or to wet hair as a serum for added shine. Light oils, including apricot kernel, grapeseed, and jojoba oil, among others, are highly effective in enhancing hair luster and hydration without weighing it down. This makes them particularly well-suited for individuals with fine hair seeking to add volume and bounce to their locks. The cooling hair oil segment has gained significant traction and is positioned as the fastest-growing segment in the market. This growth is driven by the therapeutic and stress-relieving properties of cooling hair oils, which have resonated with consumers seeking not only hair care but also relaxation and rejuvenation.

Hair Oil Market Segmentation: By Distribution Channel

• Hypermarkets/Supermarkets

• Convenience Stores

• E-Commerce

• Others

The online segment is poised to maintain its dominance as the largest market segment, primarily driven by the increasing preference for home delivery services among consumers. Working professionals, in particular, find online e-commerce platforms convenient and time-saving, making them the preferred choice for purchasing hair oil products. The rapid growth of digitalization and internet accessibility has significantly simplified the process of browsing and shopping online, further bolstering the online segment's position. Additionally, the digital landscape has seen the emergence of numerous startups and small businesses leveraging online platforms to introduce their hair oil products, aiming to reduce transportation and retail store expenses. On the other hand, hypermarkets and supermarkets are emerging as the fastest-growing market segment, enticing consumers with an extensive array of brands and products conveniently available under one roof, providing an unparalleled variety of options for in-person shopping.

Hair Oil Market Segmentation: Regional Analysis

• North America

• Europe

• Asia-Pacific

• South America

• Middle East & Africa

Asia-Pacific holds the distinction of being the largest market for hair oil, commanding a substantial 35% share of the global market. Several factors contribute to the robust demand for hair oil in the region, including heightened awareness of personal hygiene, challenging climatic conditions, concerns over water quality, and a growing inclination towards hair care products. Among the countries in Asia-Pacific, India stands out as a prominent market for hair oils, with coconut oil being particularly popular, especially in Southern India. In North America, the hair oil market is experiencing rapid growth, driven by increased investments by companies in the region's beauty and personal care sector. Furthermore, the rising demand for advanced and cost-effective hair treatment solutions adds to the factors fueling revenue growth in this market.

COVID-19 Impact on the Global Hair Oil Market:

During the pandemic, lockdowns, restrictions, and safety concerns led to disruptions in supply chains and a decline in consumer footfall at physical retail outlets. With salons and beauty parlors temporarily closing or operating under restrictions, consumers turned to at-home hair care solutions, including hair oils. This shift in consumer behavior provided a boost to the hair oil market, as individuals sought ways to maintain their hair health and address common hair problems during the pandemic. The increased emphasis on self-care and grooming at home, combined with the perceived benefits of hair oils, led to a surge in demand for these products. As a result, many hair oil manufacturers adapted by enhancing their online presence and marketing their products as effective home hair care remedies. Overall, while the COVID-19 pandemic posed challenges to the hair oil market, it also presented opportunities for growth and innovation in the sector.

Latest Trends/ Developments:

A significant increase in the prevalence of various hair-related issues and conditions, such as alopecia areata, telogen effluvium, dandruff, and scalp inflammations, is a key driver for the hair oil market. These issues are often exacerbated by factors like rising stress levels and increased exposure to environmental pollution. Additionally, dynamic shifts in hair fashion trends are fostering greater demand for diverse hair care products, consequently boosting market growth. Consumers are increasingly favoring herbal hair care products containing natural ingredients, contributing to the market's expansion. The use of medicated hair oils as a complement to hair care therapies and medications is also positively impacting the market. Furthermore, the widespread availability of a wide range of hair oils through both online and offline organized retail channels is a driving force. Ongoing product innovations, such as the development of clean-label, cruelty-free, and organic products, are gaining traction among consumers. The emergence of online beauty communities, which promote on-demand videos about hair care products and treatments, is further influencing the market positively. Other contributing factors include the introduction of user-friendly hair oil variants, rapid urbanization, increasing awareness about hair care, rising disposable incomes, and extensive research and development (R&D) efforts by key industry players.

Key Market Players:

1. Hindustan Unilever

2. Dabur

3. Johnson & Johnson

4. Amway Corp.

5. Emami Ltd.

6. Himalaya Wellness

7. The Avon Company

8. Marico Ltd.

9. Bajaj Corp Ltd.

10. Moroccanoil

In June 2022, Bajaj Consumer Care revealed its strategy to launch a range of new products across different categories, including hair oil, leveraging the established brand reputation of Bajaj Almond Drops.

In January 2022, Vedix, a personalized Ayurvedic beauty brand, introduced a novel hair oil product. This new offering is derived from onions, and the objective behind this development is to provide consumers with high-quality hair oils while competing with other industry players.