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India Herbal Shampoo Market - Growth, Trends and Forecasts (2020 - 2025)

India Herbal Shampoo Market - Growth, Trends and Forecasts (2020 - 2025)

  • September 2020
  • 91 pages
  • ID: 5976780
  • Format: PDF
  • Mordor Intelligence LLP
Up to $650 off Until Jan 31st 2021

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India herbal shampoo market is projected to grow at a CAGR of 9.87% during the forecast period (2020-2025).

- The herbal shampoo market in India is gaining traction. It is gaining immense popularity among all consumer groups in the country due to the rising awareness about the side effects of chemical formulations. Factors, such as consumer knowledge and increase in awareness of products and services, through digital media and other sources, coupled with the advent of social media, are educating the consumers about the benefits of various hair care products. This, in turn, is driving the demand for these products.?
- While demand for herbal shampoo is increasing in rural and urban markets, urban consumers have proven to be more extravagant. Additionally, due to the popularity of plant-based ingredients used in herbal Personal Care & Cosmetics products, this category witnessed significant growth throughout the historical period. It is anticipated to maintain its dominance during the forecast period as well.
- South India dominated the country’s herbal products market in 2019, and the region is expected to maintain its dominance during the forecast period.

Key Market Trends
Strong Presence of Traditional Herbal Products

Herbal and ayurveda’s global reach is further pushed by Indians migrating to foreign countries and creating a promising market for traditional personal care products. The export rate of ayurvedic and herbal products has increased significantly in recent years, affecting the herbal market globally. According to the Department of Commerce (India), the sales generated by the export of ayurvedic products accounted for USD 401.68 million in the fiscal year 2017, indicating a 10% increase compared to the previous year. Thus, representing high demand for the market study in the international market. This drives the companies to offer the products in demand on shelves, eventually increasing the product’s visibility. Consequently, manufacturers are launching their products in the international market, thereby generating more revenue in the Indian market. Thus, multinational players’ participation in the production and distribution of herbal shampoo products in the international ground has led to rising competition among the players, therefore boosting the Indian market’s revenue generation. For instance, in November 2018, Kerala Ayurveda Ltd announced its range of herbal dietary supplements in the US market, owing to the international consumers’ high acceptance. Similarly, in 2017, Dabur India partnered with Amazon to sell 30 products in Mexico, Canada, and the United States.

By Distribution Channel Convenience Stores Dominates the Market

In 2019, herbal shampoos achieved the highest proportion of its sales from independent small groceries and convenience stores. With the demand for such products gaining momentum across all cities in India, especially the developed cities, convenience stores are increasingly stocking higher volumes of these products than ever before and offering them at competitive prices to the consumers. Additionally, the convenience stores are open for longer hours, compared to the traditional stores. The penetration rate of convenience store shoppers provides a platform for the companies manufacturing herbal shampoos to reach a broader consumer base through increased product portfolios. Such factors have resulted in an increase in the sales of herbal shampoos across the country. Therefore, the increasing number of convenience stores across the country is further boosting the demand. For instance, a leading Indian retailer, Future Group, is planning a rapid launch of the country’s first 7-Eleven convenience store, aiming to tap the massive retail market, with 500 or more store openings over the next five years.

Competitive Landscape
Major players in the India Herbal Shampoo include, Dabur, CavinKare, Patanjali Ayurved, Procter & Gamble Co., among others. As per Mordor Intelligence analysis, the Indian herbal shampoo market is concentrated. Owing to the specific and professional range of herbal shampoos, embedded ayurvedic belief among consumers, consumer acceptance for novel and innovative products, and efficient distribution, the leading players are consolidating their positions in the market. Although the established brands have a strong hold in the market, new and innovative brands are foraying into the business with more unique formulations that are giving them a double-digit Y-o-Y turnover, where the Indian players have an upper hand and continue to dominate the market.

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