News Release Urban India spend 3x as much on hair care products as those in rural: Nielsen
Mumbai, India, December 20, 2018 - The global measurement company, Nielsen today unveiled its featured insight on the Indian Haircare market, titled “The Beauty Market Is Letting Its Hair Down. The report outlines several trends that are shaping the growth in the INR 22,500 crore (US$ 3.3 bn) Indian haircare industry. Categories operating in the Haircare business have experienced a 9.6% value compound annual growth rate (CAGR). New-age segments have championed this growth; compared with the overall hair care industry, colorants are growing at 1.5 times and conditioners are growing at 1.2 times.
Commenting on the featured insight, Dinesh Kapoor, Managing Director, Nielsen South Asia, said “Hair care category in the country is growing overall at double digits owing to sustained demand across urban and rural markets. India being among the lowest per capita consumers in the world, is witnessing a surge in the segment while riding on improved purchasing power and demographic dividend. With hair care also ranking fairly low in the premiumization index, we expect a huge potential from this segment in the coming years.”
As per the insight, consumers in urban areas spend 3 times as much on hair care products as those in rural areas, providing significant scope for brands to grow in the hinterlands. The urban consumers are going beyond basic hair care. Many have moved to problem-solving products. On the other hand, rural consumers continue to seek entry level hair care products providing nourishment. Both ends of the market spectrum, consequently, are groomed for growth, with a higher momentum favouring rural India.
Interestingly, Hair ranks at par with Skin among women while it outranks Physique by 2.5 times among Indian men to bag the top aspect that defines beauty.