1. Global Hair Oil Market Insight Analysis
In 2024, the global hair oil market value reached $4,054.18 million USD, with a Compound Annual Growth Rate (CAGR) of 5.05% from 2024 to 2033.
Hair oil is a specialized hair care product designed to balance hair moisture and provide essential nutrients before and after shampooing. It is considered a conditioner that makes hair soft and smooth, protecting it from harmful environmental factors such as pollution, dust, and unhealthy eating habits. Hair oil not only nourishes and strengthens hair but also reduces hair loss and promotes rapid growth. Many consumers believe that hair oil massages have a cooling effect on the scalp, making hair easier to style while keeping it smooth, soft, and shiny. The increasing awareness of hair health and the desire for natural and effective solutions have led to the growing popularity of hair oil products.
Figure Global Hair Oil Market Size (M USD) and CAGR (2024-2033)
2. Driving and Limiting Factors of Hair Oil Market Growth
The growth of the hair oil market is driven by several key factors. Firstly, the increasing demand for natural and organic hair care products has led to a surge in the popularity of hair oils. Consumers are becoming more conscious of the ingredients in their hair care products and are seeking natural alternatives that are free from harmful chemicals. Hair oils, particularly those made from natural ingredients like coconut oil, almond oil, and argan oil, are seen as healthier and more effective options.
Secondly, the rising prevalence of hair-related problems such as hair loss, dandruff, and dry hair has increased the demand for hair oil. These issues are exacerbated by environmental factors like pollution and unhealthy lifestyles, leading consumers to seek solutions that can improve hair health. Hair oils are known for their ability to nourish the scalp, reduce hair loss, and promote hair growth, making them an attractive option for consumers facing these challenges.
Thirdly, the increasing investment in research and development (R&D) by manufacturers has led to the introduction of innovative hair oil products. Companies are focusing on developing new formulations and improving existing products to meet the evolving needs of consumers. This has resulted in a wider variety of hair oils with enhanced benefits, such as improved texture, reduced frizz, and better manageability.
However, the hair oil market also faces some limiting factors. One of the main challenges is the intense competition from other hair care products, such as advanced shampoos and oil-free hair care products. These products often offer similar benefits to hair oils, making it difficult for hair oil manufacturers to maintain a competitive edge. Additionally, the high cost of raw materials, labor, and packaging can put pressure on profit margins, making it challenging for companies to keep prices low while maintaining product quality.
Another limiting factor is the perception of hair oils as being greasy or heavy, which can deter some consumers from using them. This perception is particularly prevalent in regions where consumers prefer lighter, non-greasy hair care products. Manufacturers need to address this concern by developing lighter, non-sticky formulations that appeal to a broader range of consumers.
3. Technology Innovation and Corporate Mergers and Acquisitions in Hair Oil Market
Technological innovation plays a crucial role in the hair oil market, driving the development of new and improved products. Manufacturers are increasingly investing in R&D to create hair oils with enhanced benefits and better formulations. For example, the use of advanced extraction techniques and natural ingredients has led to the development of hair oils that are more effective in nourishing and protecting hair. Additionally, the incorporation of innovative packaging solutions, such as airless pumps and travel-sized bottles, has made hair oils more convenient and user-friendly.
Corporate mergers and acquisitions (M&A) have also been a significant trend in the hair oil market. These activities have allowed companies to expand their product portfolios, enter new markets, and gain a competitive edge. For instance, L’Oréal’s acquisition of Mugler and Azzaro fragrances from Clarins Group in 2019 demonstrates the strategic importance of M&A in the beauty industry. This acquisition not only expanded L’Oréal’s product range but also enhanced its presence in the global market.
Similarly, Marico’s acquisition of Beardo in 2020 highlights the trend of companies focusing on niche markets and expanding their product offerings. Beardo, a men’s grooming brand, has a strong presence in the Indian market, and its acquisition by Marico allowed the company to strengthen its position in the growing men’s grooming segment.
Other notable M&A activities include Unilever’s acquisition of various brands such as Lenor Japan and The Laundress, which have expanded its product range and market presence. Henkel’s acquisition of DevaCurl, a premium professional hair care brand, has also strengthened its position in the hair care market, particularly in the US.
4. Global Hair Oil Market Size by Type
Coconut oil is one of the most popular and widely used hair oils globally. It is extracted from the kernel or meat of mature coconuts and is known for its high saturated fat content, which makes it resistant to rancidification. Coconut oil is ideal for all hair types and is particularly effective in providing moisture and protection against bacterial and protozoan infections. In 2024, the market value of coconut oil is projected to reach 1394.29 million USD, accounting for 34.39% of the total hair oil market value.
Almond oil is a versatile fat that can be used both as a food and a natural beauty product. It is rich in nutrients and is known for its ability to promote heart health, stabilize blood sugar levels, and prevent free radical damage. In the hair care context, almond oil is particularly effective in combating dandruff and promoting healthy hair growth. The market value of almond oil in 2024 is expected to be 746.78 million USD, representing 18.42% of the total hair oil market value.
Argan oil, derived from the kernels of the argan tree native to Morocco, is renowned for its nourishing and conditioning properties. It is particularly beneficial for dry or frizzy hair, as it helps tame frizz and promote a glossy, lustrous appearance. Argan oil is also rich in vitamin E and other antioxidants, making it a premium choice for hair care. In 2024, the market value of argan oil is projected to be 565.10 million USD, accounting for 13.94% of the total hair oil market value.
Table Global Hair Oil Market Size by Type in 2024
Market Size (M USD) 2024 | Market Share | |
Coconut Oil | 1394.29 | 34.39% |
Almond Oil | 746.78 | 18.42% |
Argan Oil | 565.10 | 13.94% |
Others | 1348.01 | 33.25% |
5. Global Hair Oil Market Size by Application
Specialty stores are retail outlets that focus on selling hair care products, including hair oils. These stores often provide a curated selection of high-quality products and may offer additional services such as hair consultations. In 2024, the market value of hair oils sold through specialty stores is projected to be 1453.63 million USD, accounting for 35.86% of the total hair oil market value.
Drug stores and pharmacies are another significant distribution channel for hair oils. These stores typically offer a variety of hair care products, including those that address specific hair issues such as dandruff or hair loss. In 2024, the market value of hair oils sold through drug stores and pharmacies is expected to be 235.90 million USD, representing 5.82% of the total hair oil market value.
Supermarkets and hypermarkets are large retail stores that offer a wide range of products, including hair oils. These stores often have dedicated sections for hair care products and provide consumers with a convenient shopping experience. In 2024, the market value of hair oils sold through supermarkets and hypermarkets is projected to be 931.62 million USD, accounting for 22.98% of the total hair oil market value.
Convenience stores are small retail outlets that offer a limited selection of products, including hair oils. These stores are known for their accessibility and convenience, making them a popular choice for consumers seeking quick purchases. In 2024, the market value of hair oils sold through convenience stores is expected to be 477.59 million USD, representing 11.78% of the total hair oil market value.
Online channels, including e-commerce platforms, have become increasingly popular for purchasing hair oils. These platforms offer a wide range of products, competitive pricing, and the convenience of shopping from home. In 2024, the market value of hair oils sold through online channels is projected to be 955.43 million USD, accounting for 23.57% of the total hair oil market value.
Table Global Hair Oil Market Size by Application in 2024
Application | Market Size (M USD) 2024 | Market Share |
Specialty Stores | 1453.63 | 35.86% |
Drug Stores/Pharmacies | 235.90 | 5.82% |
Supermarket/Hypermarkets | 931.62 | 22.98% |
Convenience Stores | 477.59 | 11.78% |
Other | 955.43 | 23.57% |
6. Global Hair Oil Market by Top Regions
Asia-Pacific emerged as the largest market by revenue, accounting for 41.07% of the global hair oil market in 2024. This region’s dominance can be attributed to several factors, including a large consumer base, growing awareness of hair care, and the increasing popularity of hair oil products in countries such as India, China, and Japan. The region’s market revenue stood at $1,652.78 million USD in 2024, highlighting its significant contribution to the global market.
The Europe region also played a crucial role, with a market revenue of $1,491.51 million USD in 2024, representing 36.79% of the global market. Europe’s strong market position is driven by the presence of major hair care brands and a high demand for premium hair care products.
North America accounted for 19.57% of the global hair oil market in 2024, with a revenue of $793.56 million USD. The United States and Canada have been the primary drivers of this region’s market, with consumers showing a strong preference for natural and organic hair care products.
The Middle East & Africa region contributed 2.26% of the global market revenue in 2024, amounting to $91.56 million USD.
South America had the smallest market share, accounting for 0.61% of the global hair oil market revenue in 2024, with a total revenue of $24.77 million USD.
Figure Global Hair Oil Market Size by Region in 2024
7. Global Hair Oil Market Analysis by Major Players
7.1 L’Oréal SA
Company Introduction and Business Overview: L’Oréal SA, established in 1909, is a global leader in the cosmetics industry. The company offers a wide range of hair care products, including hair oils, shampoos, conditioners, and styling products. L’Oréal’s hair oil products are known for their high-quality formulations and innovative ingredients.
Products Offered: L’Oréal Paris Extraordinary Oil Lustrous Oil Serum is one of its popular hair oil products. This lightweight oil is designed to hydrate and nourish dry, lifeless hair, leaving it soft and lustrous.
7.2 Marico
Company Introduction and Business Overview: Marico Limited, established in 1990, is one of India’s leading consumer goods companies. The company offers a wide range of health, beauty, and wellness products, with a strong presence in the hair oil market.
Products Offered: Parachute Coconut Oil is Marico’s flagship hair oil product. This product is known for its purity and quality, offering nourishment and protection to the hair and scalp.
7.3 Unilever
Company Introduction and Business Overview: Unilever, established in 1929, is a British-Dutch multinational consumer goods company. The company offers a wide range of products, including food, beverages, cleaning agents, and personal care products.
Products Offered: Dove Elixir Nourished Shine Hair Oil is one of Unilever’s popular hair oil products. This product is enriched with hibiscus and argan oils, designed to nourish and protect hair.