Market Trends of Asia Pacific Hair Care Industry
Increasing Demand for Organic/Herbal Hair Care Products
The Asia-Pacific hair care market witnessed an increasing demand for natural and organic products due to the rise in consumer awareness about the harmful effects of certain compounds, such as parabens and aluminum, in hair care products. Additionally, consumers with sensitivity tend to look for natural and fragrance-free products. This demand led most companies to launch natural-inspired products, such as plant-based and premium botanical ingredients. For instance, in August 2022, OrgaGlo, a plant-based skin and hair care brand, entered the Indian personal care and cosmetic industry with 18 products under its umbrella. The company claimed that its products had been formulated using plant-derived ingredients free from harmful chemicals.
Countries with zestful consumer cultures, such as India, China, and Japan, have opened the way for the organic/herbal hair care business to thrive. Over the last half-decade, these countries' large populations and favorable network externalities have helped them achieve tremendous development in the organic hair care industry. Also, increasing penetration of organic products through online sales channels and more players offering them through e-commerce websites are expected to attract consumers, thus driving the sales of organic hair care products.
India Accounts as the Fastest-growing Market in the Region
Changing consumer dynamics, coupled with increasing product awareness, has been identified as the primary driver of the market. These changes are due to the high millennial population, migration toward cities, rising women's employment, and increasing spending capacity. The migration to cities has directly impacted the traditional hair care products market. Growing awareness among consumers about scalp issues reflects a massive need for scalp care products. The demand for basic essential commodities and the hair oil market is expected to rise throughout the forecast period.
In India, consumers increasingly prefer items made with natural components. As a result of linking sulfates and parabens to frizzy hair, flaky scalps, and split ends, customers are avoiding products containing these compounds in favor of natural or herbal alternatives. This factor, in turn, has created a pathway and a blueprint for organic manufacturers to enter the hair care business.
For instance, in May 2022, Medimix, the flagship brand of the AVA Group, announced the launch of its new hair care line, Total Care Shampoo. Medimix total care shampoo is made of nine natural herbs and other essential ingredients, which include neem, rosemary oil, licorice, tea tree oil, Datura, wild ginger, wheat protein, Bakuchi, and apple cider vinegar. Hence, such developments are expected to drive people toward organic and herbal hair care products over synthetic products, creating ample opportunities for organic hair care stakeholders.
