A marketing insight report by Datamonitor, 'Product Insights: Haircare in India', has estimated the Indian haircare segment to grow at a CAGR of around 10 per cent over the next 5 years, making it one of the fastest growing haircare markets in the world.
India was ranked eighth in terms of the new products launched globally in 2009, and is increasingly becoming one of the most sought-after destinations for retail investments in haircare.
The growth is attributed to favourable demographics and key socio-economic factors such as rising beauty consciousness and increasing disposable incomes.
Shampoos and conditioners, which collectively accounted for around two-thirds of all new launches in 2009 are the mainstay of the market but categories such as styling agents and hair colorants are now beginning to gain traction.
Owing to a rising middle age population and a youth population that is becoming increasingly adventurous with different hair colours, the hair colourants category in particular is expected to witness plenty of new product launches, in both the synthetic and natural variants in the coming years.
Arvind Arun, analyst, Datamonitor and author of the report, says, ''While synthetic hair colourants are definitely gaining in popularity, natural hair colorants containing ingredients such as amla and henna will continue being patronised particularly in rural India.''