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Is Hair Care Product Business Profitable – Reasons & Benefits

  • 14/02/2023
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Is Hair Care Product Business Profitable?

Hair care business is profitable because the market size of hair care products is set to increase by many folds across the globe. Customers are becoming increasingly aware of the hazards caused by pollution and poor eating and drinking habits. They want to improve their hair health by using hair care products made from pure and natural ingredients. Therefore, they cross-check the ingredient list on the product labels carefully before buying hair care products. This has forced even the top cosmetic brands to include natural and organic ingredients in their products.

New brands have an added advantage in hair care products. They can establish a positive image in the minds of the customers by providing natural hair care products that are effective and reasonably priced. In this article, we will look at how the hair care product business is set to grow exponentially in the coming years!

Reasons That Make Hair Care Business Profitable

In India alone, the hair care market is set to grow at 3.56 CAGR from 2023 to 2027. The revenue of hair care products in India was USD 2.96 billion in 2023. The huge rise in the demand for natural hair products, evolving customer requirements, rise in hair issues, and increased awareness in customers are the few factors that have contributed to the growth in this sector. Here are a few reasons that make hair care profitable for hair care products companies:

1. Large Market Size

According to grandviewresearch.com, the global market size of hair and scalp care industry will grow up to USD 134 billion by 2028. The growth rate is expected to be 6.6% from 2021 to 2028. These statistics are enough to explore the opportunities that hair care businesses will get to expand their business in the near future!

2. Repeat Business

Customers tend to stay loyal to the brands that resolve their common hair problems and issues. Therefore, they get repeated orders from the same customers multiple times a year. This is also true for the hair care product manufacturers that work in the B2B segment. Therefore, repeat business can be considered the key driver for the growth of hair business.

3. High Margins

Smart evaluation of ingredient acquiring costs and inventory expenses can help hair care businesses to get higher profit margins by selling their products. Natural ingredients can be sourced from local suppliers and farmers to reduce production costs. Also, outsourcing the manufacturing work to private label hair care products companies can help newer brands to get their products manufactured at wholesale rates. They can sell their products at higher rates to their customers and earn higher profits as well!

4. Growing Demand

The growing demand for natural hair care products has inspired natural hair care brands to expand their product line. Customers do not tend to purchase products that contain chemicals like mineral oils, sulphates, paraben, etc. in the ingredient list. The increased awareness has helped natural hair care companies to target a wider audience in recent years.

5. Potential For Brand Recognition

Social media is for everyone! The SEO efforts and marketing tactics help brands to increase their recognition in both local and international markets. Brands can decide their target audience by classifying them on the basis of their occupation, age, requirements, and location. They can also opt for influencer marketing, email marketing, and other strategies to increase their reputation among their audiences.

6. Online Sales Opportunities

New brands can sell their products directly to their customers by creating their official apps and websites. They can also collaborate with e-commerce portals like Nykaa, Meesho, Ajio, Purple, Amazon, Flipkart, etc. to increase the online sales of their products. The online platforms help the hair care business to increase its gross revenue at a rapid rate.

7. Growing Interest In Natural & Organic Products

Customers are interested in natural and organic products because they do not cause any side effects. The benefits of natural products are immensely popular among the general public. It allows new hair care companies to create natural products that are effective and deliver results quickly. Also, they can expand their product line by including shampoos, conditioners, hair colours, and other products.

8. Potential For Product Innovation

Research labs and hair care experts can collaborate together to find path-breaking hair care formulations. By exploring the use of rare natural ingredients, they can provide the desired results to the end users. The innovative products will not only impress the customers but will also help brands to gain customer loyalty.

9. Ability To Target Specific Demographics

Men and women have different hair care needs. The issues like hair fall, hair greying, etc. tend to increase with age. The effect of pollution, climate, and other environmental factors cannot be undermined either. All these diversities help hair care brands to create specific and unique products for specific demographics.

10. Potential For Global Expansion

The availability of online selling platforms combined with global logistics service providers has enabled brands to access the global audience. The newer brands can also establish their factories in countries that charge zero or negligible taxes for the business. By doing so, they can convert their local brand into a global one!

These reasons provide tremendous growth opportunities for hair care businesses. If you are thinking about starting a business, targeting the hair care industry would be the best option for you. You can also take support from contract manufacturing and private label service companies to take care of the manufacturing needs of your brand.

How To Get Right Private Label Manufacturer For Hair Care Business Line?

Getting the right private label hair manufacturer can be tricky for new brands. The several private label hair care manufacturers that operate in the market can easily confuse them. Here are some things that they consider while choosing the right private label hair care manufacturer for their hair care business:

1. Research Potential Manufacturer

As a new hair care company owner, you can by exploring the potential third-party hair care product manufacturers in your area. Collaborating with private label product manufacturers that have plants near your location will reduce transport costs and will help you to set up business meetings easily.

2. Evaluate Product Quality

The quality of the manufactured products will determine whether your brand will sustain itself in this fiercely competitive market. Therefore, you must choose manufacturers that have dedicated quality testing teams. You can also ask them to manufacture the samples so that you can test and verify their quality by yourself.

3. Check For Certifications

Go for the private label manufacturers that have obtained valid certifications for producing natural and organic products. Many white label and private label companies claim themselves to be completely organic but produce fake and ineffective products. Therefore, you must avoid these companies and collaborate only with the reputed ones.

4. Consider The Customisation Options

The private label companies that allow you to customise the ingredients, formulas, quality, colour, and fragrance of the products will be the best option for outsourcing the manufacturing part of your business. You should go for companies that have a dedicated research and development team that will take care of all your customisation needs.

5. Evaluate Pricing

You can compare the pricing of multiple private label companies to choose the most affordable ones. Also, check the MOQs (Minimum Order Quantities) that companies require you to order to avail of their services. The companies that provide maximum discounts without expecting you to place huge orders can be the ideal ones for startups and new hair care brands.

6. Assess Customer Support

When you indulge in the B2B sector, you must have access to a dedicated customer support team to handle all your queries and complaints. You can connect with their support team whenever you want to get more information about their offerings and services. The companies that provide online support through chat and email can prove to be more convenient for you.

7. Review Case Studies And Testimonials

Do not forget to check the reputation of a company online before indulging in any business with them. You can evaluate the reviews, case studies, and testimonials posted on third-party websites to cross-check the authenticity of private label service providers. You can also use professional sites like LinkedIn to grow your business network and take feedback from peers.

It is easy for you to choose a private label service provider if you evaluate all these factors carefully. Choose the company that helps you create customised and innovative products without spending a fortune on them.


Hair care business is profitable if you are smart enough to conduct business. If you are a startup, you should outsource your production to reputed companies like Bo International. Bo International is an end-to-end service provider when it comes to private label services. We not only accept custom formulas and ingredients but also help our clients with logo designing, customised packaging, marketing, and other aspects of their business. Get in touch with our sales representative today to explore more about our offerings!

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