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Hair care industry set for growth

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Hair care industry set for growth

The personal care market in the FMCG segment in India is being driven by hair care, feminine care and baby care products. A recent report by AC Nielsen shows value growth of 3.8% for hair care products as a moving annual total (MAT) in May 2004.

Within the hair care category, hair conditioners grew by 63%, while hair colourants grew almost 8%. Hair oils, which are a significant product in India, grew by 6%, according to the report.

A distributor of FMCG products opined that the hitherto black-colour dominated hair colourants market, now has a spectrum of colours and has bagged consumers including grey-haired people as well as youngsters.

The report shows a modest value growth of 0.3% in shampoos. An analyst with a leading Mumbai-based brokerage firm said that in shampoos there may have been more volume growth than value growth, due to the recent price cuts. The much higher growth in hair colourants/dyes has to be seen on a significantly lower base. The analyst added that while dyes have witnessed value growth, colourants have seen volume growth.

The per capita consumption and penetration of hair colourants is increasing. Godrej continues to be the market leader in this segment with a market share of about 40%. Other brands include Loreal and Super Vasmol.

Godrej Consumer Products vice-president RK Sinha said: “We find this segment to be promising due to the urge of people to look young and also due to fashion concepts. Going forward organised competition is expected to grow.”

Analysts said that the 3.8% growth in hair care as shown by the report may be strong when compared to an earlier decceleration, but standalone, it is not very significant.

The AC Nielsen report further notes that hair conditioners and colourants were earlier restricted to the affluent for occasion-linked beautification. But gradually they are becoming a way of life.

In case of feminine care, the report shows a volume growth of over 10% in 2004. Expanding user base, increasing affordability and greater width of distribution (faster growth in rural areas) are cited as the prime reasons.

Analysts opined that Procter & Gamble (P&G) has been seeing double-digit growth over the past 4-5 years in feminine care. Johnson & Johnson, another major player, has also seen good volume growth. Together, these two companies have a market share of about 85%.


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