Hair Oil Market – Global Industry Size, Share, Trends, Opportunity and Forecast, By Type (Coconut Oil, Almond Oil, Others), By Application (Residential, Commercial), By Sales Channel (Supermarkets/Hypermarkets, Departmental Stores, Online, Others), By Region & Competition, 2020-2030F

Market Overview

Global Hair Oil Market was valued at USD 23.96 billion in 2024 and is expected to grow to USD 32.94 billion by 2030 with a CAGR of 5.49% during the forecast period. The global hair oil market is witnessing steady growth, fueled by increasing consumer awareness of hair and scalp health, alongside a rising preference for natural, organic, and herbal formulations. Consumers are shifting from synthetic products to oils enriched with botanical extracts, essential oils, and Ayurvedic ingredients, reflecting the growing emphasis on clean beauty. Rising concerns over hair fall, dandruff, pollution damage, and premature greying are also boosting product adoption.

Additionally, premiumization and innovative product launches tailored to specific needs, such as strengthening, moisturizing, or repairing, are enhancing demand. E-commerce expansion further accelerates accessibility, driving wider global reach and market penetration. According to analysis of U.S. Department of Commerce data, U.S. e-commerce sales hit new highs in 2024, with penetration reaching a record 22.7%. Since 2020, e-commerce has consistently represented over one-fifth of retail sales.

Key Market Drivers

Rising Demand for Natural and Herbal Hair Care Products

One of the primary drivers of the global hair oil market is the increasing consumer preference for natural and herbal formulations. Consumers today are more conscious about the ingredients used in personal care products and actively avoid those containing harsh chemicals, sulfates, and parabens. This has resulted in a noticeable shift toward hair oils enriched with natural ingredients such as coconut, argan, amla, jojoba, castor, and almond oils. Herbal infusions and Ayurvedic solutions are also gaining popularity, particularly in regions like Asia-Pacific, where traditional remedies are deeply rooted in cultural practices. As per the report, 46% of Australian consumers began purchasing organic products primarily for personal health benefits, a shift that was further accelerated by the COVID-19 pandemic.

The clean beauty movement has further amplified the demand for organic and plant-based hair oils that promote scalp nourishment, hair growth, and overall health without harmful side effects. Brands are responding by offering certified organic products and highlighting sustainable sourcing methods, appealing to eco-conscious consumers. For instance, cold-pressed oils that retain nutrients and vitamins are highly sought after. This rising focus on natural and herbal solutions has become a major growth catalyst, with both established and emerging brands positioning themselves around authenticity and transparency in ingredient use.

Increasing Hair and Scalp Concerns

Rising incidences of hair and scalp-related problems are significantly boosting the demand for hair oils worldwide. Pollution, harsh weather, poor diets, stress, and frequent use of chemical-based styling products have increased issues like hair fall, dandruff, dryness, premature greying, and scalp sensitivity. To address these, around 65% of hair care brands are adopting AI-powered personalization technologies that analyze hair type, scalp health, and hydration levels to create customized solutions and support long-term hair wellness. Hair oils are widely regarded as effective remedies, delivering hydration, nourishment, and protection. Enriched with vitamins, essential fatty acids, and antioxidants, they not only repair damaged strands but also stimulate scalp circulation, promoting healthier growth. In urban areas, growing stress and sedentary lifestyles have further positioned hair oiling as an essential self-care ritual for both relaxation and rejuvenation.

Product Innovation and Premiumization

Innovation in product formulation and premiumization is another significant driver shaping the global hair oil market. Consumers are increasingly willing to spend more on high-quality, specialized hair care products that cater to their unique needs. Premium hair oils now feature advanced formulations that blend traditional natural ingredients with modern cosmetic science. These include lightweight, non-sticky oils, serums, and dry oils designed for easy application without greasiness, catering to modern lifestyles.

Furthermore, companies are launching targeted solutions for specific concerns, such as anti-hair fall oils, scalp revitalizing blends, or oils designed for chemically treated hair. Premium brands are also focusing on packaging aesthetics, eco-friendly bottles, and unique fragrances to enhance consumer experience and brand differentiation. Personalized hair oil solutions, where products are tailored according to hair type, texture, and specific problems, are emerging trends gaining traction among millennials and Gen Z.

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Key Market Challenges

Intense Market Competition and Price Sensitivity

The global hair oil market is highly competitive, with the presence of multinational corporations, regional brands, and a growing number of local players. This competitive environment makes differentiation challenging, as many products offer similar benefits such as nourishment, anti-hair fall, dandruff control, or scalp hydration. Established brands like L’Oréal, Unilever, and Procter & Gamble face increasing competition from regional Ayurvedic and herbal players, particularly in Asia-Pacific, where traditional remedies are highly trusted.

Price sensitivity among consumers further intensifies the challenge. In price-driven markets like India and parts of Africa, consumers often opt for low-cost alternatives rather than premium or specialized hair oils. This limits the ability of brands to scale premiumization strategies in these regions. Smaller players, by undercutting prices, also gain traction in local markets, creating additional hurdles for global brands. To stay competitive, companies must continually invest in innovation, marketing, and brand positioning, which can be resource-intensive. Thus, intense competition combined with high consumer price sensitivity poses a major obstacle to sustained profitability and market share growth.

Shifting Consumer Preferences Toward Modern Alternatives

While traditional hair oils remain popular in many cultures, a noticeable challenge is the growing consumer shift toward modern hair care alternatives such as serums, leave-in conditioners, dry oils, and sprays. These products are often perceived as more convenient, less greasy, and better suited to fast-paced lifestyles, particularly among younger, urban consumers. For instance, serums and lightweight sprays provide instant shine and frizz control without the stickiness associated with traditional oils, making them appealing for daily use.

The rise of professional salon treatments, keratin-infused solutions, and advanced cosmetic formulations also competes directly with conventional hair oils. In Western markets, hair oils are often positioned as a niche category, while serums and treatments dominate mainstream adoption. This consumer behavior shift creates challenges for traditional and herbal oil brands, which must adapt their offerings to align with modern preferences.

Key Market Trends

Growing Popularity of Multifunctional and Customized Hair Oils

A significant trend reshaping the global hair oil market is the rising demand for multifunctional products that cater to diverse hair needs in a single formulation. Consumers increasingly prefer oils that not only provide nourishment but also offer solutions for concerns such as dandruff, frizz, split ends, dryness, and hair fall. This demand is driven by busy lifestyles, where people look for simplified yet effective hair care routines.

Brands are innovating by infusing oils with vitamins, minerals, and essential fatty acids to deliver comprehensive care. For instance, oils enriched with vitamin E or keratin offer strengthening and repair benefits, while lightweight formulations help with styling and shine. Additionally, customized or personalized hair oils tailored to individual hair types, textures, and scalp conditions are gaining popularity. Through online platforms, companies now allow customers to answer a few questions about their hair and receive a bespoke oil blend. This personalization trend resonates strongly with millennials and Gen Z, who value unique solutions over mass-produced products.

Digital Influence and Social Media-Driven Adoption

The influence of digital platforms and social media on the hair oil market has grown substantially in recent years. Platforms like Instagram, TikTok, and YouTube play a pivotal role in shaping beauty and hair care trends, particularly among younger consumers. Influencers, beauty vloggers, and dermatologists often share tutorials, reviews, and testimonials showcasing the benefits of various hair oils, which directly impacts purchase decisions. In the U.S., 46% of consumers report increased spending on beauty products driven by social media influence, with platforms like Instagram and YouTube fueling demand and deepening brand-consumer engagement.

Viral trends, such as “hair oiling routines” or “DIY herbal oil blends,” have gained immense traction online, creating new interest in traditional hair care practices across global markets. For example, the resurgence of Ayurveda and traditional oiling methods has been amplified by digital storytelling, making heritage practices trendy among Gen Z.

Sustainability and Clean Beauty Movement

Sustainability and clean beauty are among the strongest trends influencing the global hair oil market. Modern consumers are highly conscious about the environmental and ethical impact of the products they use, prompting brands to adopt eco-friendly practices. This includes sourcing natural ingredients responsibly, reducing carbon footprints, and offering recyclable or biodegradable packaging. Oils derived from cold-pressed, organic, or fair-trade sources are particularly appealing to eco-conscious buyers.

The clean beauty movement also emphasizes products free from sulfates, parabens, silicones, and artificial fragrances. Transparency in ingredient labeling and certifications such as organic, vegan, or cruelty-free are no longer optional but expected by consumers. This trend aligns strongly with the growing popularity of Ayurvedic and holistic wellness practices, where the emphasis is on purity, safety, and sustainability.

Segmental Insights

Application Insights

The residential segment dominated the global hair oil market, driven by widespread household usage for daily hair care routines. Consumers across diverse demographics use hair oils at home for nourishment, scalp health, and addressing concerns like dryness, dandruff, or hair fall. Cultural traditions, particularly in Asia-Pacific and Middle Eastern countries, further reinforce the practice of regular oiling within households. Rising awareness of natural and herbal formulations has boosted at-home usage, with families often favoring coconut, almond, or amla oils. Convenience, affordability, and easy availability through retail and online channels continue to strengthen the residential segment’s dominance in the market.

Sales Channel Insights

Supermarkets and hypermarkets dominated the global hair oil market as the preferred distribution channel, offering consumers wide product availability, variety, and convenience under one roof. These retail formats provide direct access to both premium international brands and affordable local options, catering to diverse consumer preferences. Attractive in-store promotions, discounts, and product bundling further encourage bulk purchases. The ability to physically examine products, compare prices, and access immediate availability strengthens consumer trust in this channel. Particularly in urban areas, supermarkets and hypermarkets act as the primary shopping destination for personal care items, reinforcing their dominance in the global hair oil market.

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Regional Insights

Asia Pacific was the dominating region in the global hair oil market, driven by strong cultural traditions and widespread usage of oils for daily hair care. Countries such as India, China, and Southeast Asian nations have long relied on coconut, amla, and herbal oils as part of their grooming practices. High population density, rising disposable incomes, and growing awareness of natural and herbal solutions further support demand. Additionally, the expansion of organized retail and e-commerce platforms enhances accessibility across both urban and rural areas. The region’s deep-rooted cultural practices and large consumer base ensure Asia Pacific’s leading market position.

Recent Developments

• ​In Aug 2024, Marico introduced the innovative Hair & Care Oil in Serum, blending styling benefits of a serum with almond oil’s nourishment, enriched with Vitamin E, which is available across West Bengal, Odisha, Punjab, and Northeast India

• In Dec 2023, Dabur Vatika introduced its Rosemary Hair Growth Oil, enriched with rosemary, hibiscus, and coconut oil, developed in collaboration with dermatologists. Packaged in a 200 ml premium mono-carton and it is designed to strengthen and enhance hair shine.

• In Oct 2023, Nihar Naturals a Marico brand launched Extra Care Hair Oil with Coconut & Hibiscus, formulated to reduce hair breakage and make strands up to 10× stronger. Introduced in West Bengal, it merges local hibiscus heritage with nourishing coconut oil.

Key Market Players

• Dabur India Ltd
• Emami Group
• L'Oreal S.A.
• Hindustan Unilever Limited
• Henkel AG
• Patanjali Ayurved.
• Coty Inc.
• Procter & Gamble
• Johnson & Johnson Private Limited
• Himalaya Drug Company

Report Scope:

In this report, the Global Hair Oil Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•   Hair Oil Market, By Type:

o   Coconut Oil

o   Almond Oil

o   Others

• Hair Oil Market, By Application:

o   Residential

o   Commercial

• Hair Oil Market, By Sales Channel:

o   Supermarkets/Hypermarkets

o   Departmental Stores

o   Online

o   Others

• Hair Oil Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia-Pacific

§  China

§  Japan

§  India

§  South Korea

§  Indonesia

o   South America

§  Argentina

§  Colombia

§  Brazil

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Turkey

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Hair Oil Market.

Available Customizations:

Global Hair Oil Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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