Market Trends of India Herbal Shampoo Industry
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.
Understand The Key Trends Shaping This Market
Download Sample
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.
