Home » Blog » Why Is Hair Care Product Business Best Choice For Start-Ups.

Why Is Hair Care Product Business Best Choice For Start-Ups.

  • 14/02/2023
  • Author

Why Is Hair Care Product Business Best Choice For Start-Ups?

The demand for natural hair care products has grown tremendously in the last few years. The impact of pollution, poor eating habits, and other external factors on hair cannot be neglected. Most men and women who work in corporate firms and other sectors are conscious of their looks and lifestyle. They are interested in grooming and presenting themselves in the best manner possible. This has created a huge opportunity for hair product companies.

Though there is a huge competition in the skincare and cosmetic categories, the hair care category is still left to be explored by most brands. The lack of established and organised players in the industry when it comes to hair care businesses gives a huge opportunity to new players. In this article, we will discuss how the hair care product business is the best choice for startups!

Market Potential of Hair Care Products

The market presents numerous opportunities for start-ups who want to explore the category of hair care products. Here are a few aspects that hair care companies need to understand about the market:

1. High Demand

The exploding population and their grooming requirements are growing day by day. While there is a steady demand for cosmetic products, the demand for natural products is also growing rapidly. People want to tackle issues like split ends, dandruff, hair fall, baldness, etc. immediately to prevent any further damage to their hair. This has created a huge opportunity in the market for new brands and startups.

2. Large Market

India is a huge market for hair product companies. The market comprises both men and women users belonging to different age groups. Even salons, beauty parlours, hair treatment centres, etc. are growing rapidly in tier-2 and tier-3 cities giving a steady rise in companies that work in the B2B sector.

3. Affordable Start-Up Costs

The demand for homemade DIY products and organic hair care products allows hair care companies to start their business without worrying about capital. The availability of easy and affordable business loans has also encouraged the youth to start a hair care line and reap huge profits from the business!

4. Room For Creativity & Innovation

Brands that are creative about their marketing and promotional strategies are here to stay. The innovation in the formulas and research-based studies to explore the uses and benefits of organic ingredients have also been the key drivers of this sector. However, there is still much scope for improvement, especially in the Indian market. The start-ups can capitalise on this opportunity to make a strong impact on the audience.

5. Growing Trend Towards Natural & Organic Products

Natural hair care companies are thriving because of an exponential rise in the demand for natural and organic products. The start-ups and new hair care businesses should identify the growing inclination of the customers towards natural products to capitalise on this market as early as possible.

6. Opportunities For E-Commerce

New businesses can start selling their products directly to their customers. They can also start their own e-stores by collaborating with e-commerce giants like Nykaa, Meesho, Amazon, Flipkart, and more. It gives them access to a wider audience and helps them to maximise the business through online promotions and marketing.

7. Strong Customer Loyalty

Though there is a huge influx of new hair care brands, the number of ineffective and counterfeit products in the market is also growing at an alarming rate. Therefore, customers who get noticeable results after trying products of a particular brand tend to remain loyal towards it.

All these reasons allow start-ups to establish their foothold in the market. The demand for US hair colour treatment and other hair care therapies has also allowed brands to be creative and unique in their offerings. The ease of manufacturing hair care products through private label service companies and contract manufacturers allows the brands to focus solely on their marketing and promotions. It allows them to scale up their business without investing a huge sum of money in machinery, ingredients, and inventory.

Can Third-Party Hair Care Manufacturers Be A Great Choice For Start-Ups?

Start-ups may not have the required capital to invest in land, inventory and other aspects of businesses. They might not have the required manpower to carry out the manufacturing and production activities. Due to these reasons, it is better for them to get their production outsourced from third-party hair care manufacturers. These are the reasons why new hair care companies should opt for private label hair care product manufacturers:

1. Reduce Risk

The new brands can easily go wrong with their formulas and manufacturing techniques because of their lack of expertise in this field. Their inexperience can cost them a lot and can disturb their goals in the early stage. To counter this, they can hand over the manufacturing part to renowned private label hair care manufacturers.

2. Access To Experts

The best private label hair care manufacturers tend to hire experts to formulate and test their products. Therefore, the finished products prove to be effective and manage to impress the end users. It allows new brands to target their audience niche and win customer loyalty through steady marketing and branding methods.

3. Lower Start-Up Costs

Hair product businesses that do not want to spend on production plants, machinery, and ingredients can outsource their production to natural hair care manufacturers. It also helps them to reduce manpower and also minimise their capital expenditure. They are able to direct their resources towards increasing brand and product awareness which ultimately improves their ROI.

4. Flexibility

Third-party private label hair care manufacturers are flexible when it comes to accepting unique and new formulations. They have their own R&D team that works on the best formulas to come up with better products. Therefore, new brands can decide the kind of ingredients they want in their offerings. They can also determine the fragrance profile, colour, and aesthetic elements of their products with the help of natural private label hair care companies.

5. Scalability

It is easier to scale up the production and add more products to the product line when you collaborate with a private label hair care company. By ordering products in bulk, it is also possible to get bigger discounts from third-party hair care product manufacturers. All of this will ultimately make your hair care business more profitable!

6. Focus On Branding & Marketing

When you have your production issues resolved, your business can focus on its branding and marketing strategies. You can focus on influencer marketing to lower your CAG (Customer Acquisition Cost). You can bring in more customer engagement by being active on social media. All of these will propel your brand recognition and reputation to higher levels!

7. Time-Saving

The rapid and bulk manufacturing capacity of white label hair care manufacturers and private label hair care companies will save your production time. Private label hair care products manufacturers provide end-to-end solutions from product formulation to packaging to make things faster for your hair care business. They also collaborate with leading logistics companies to dispatch and deliver your products without wasting any time.

Wholesale private label hair care products seem to be the best option for scaling up and expanding your new hair care products company. You get the best services and the option to customise the packaging and formulas as per your business requirements.


Hair care business is lucrative and rewarding for new brands. However, they should outsource their manufacturing part to reputed third-party hair care manufacturers to prevent early hassles and setbacks. At Bo International, we offer complete solutions for new hair care product companies. Our private label services include complete solutions from formulation to testing and packaging to delivery. We provide third-party labelling services for your brand. Get in touch with our sales representative to know more about our private label services and products!


Request Free Quote