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From Shelf to Screen How Herbal Shampoos Took Over India’s Beauty Market

February 26, 2025

by Ken Research

Imagine this, a decade ago, herbal shampoos were a niche, sitting on dusty shelves, overshadowed by chemical-heavy giants promising instant results. Fast forward to today, and the script has flipped. Consumers are waking up, demanding cleaner, Ayurveda-driven products, and brands that fail to evolve are fading fast.

With a valuation of USD 375.6 Mn in 2023, and with an enhanced growth toward USD 663.8 Mn by 2029, the herbal shampoo market isn’t just growing—it’s rewriting the rules of personal care in India.

E-Commerce is Swallowing the Market Whole

Remember when herbal shampoo was something you had to search tirelessly for in those small, speciality Ayurveda shops?

Not anymore. Amazon, Flipkart, and Nykaa have shattered the barriers, making herbal hair care just a click away. Online sales grow to USD 16.9 Mn in 2023, and by the end of 2025, they will be at USD 22.2 Mn.

Why? Because convenience, variety, and trust now matter more than ever. Consumers don’t just want a product, they want a brand that aligns with their wellness journey and while some legacy brands are still stuck in the old ways, disruptors are making waves with modern, ingredient-focused storytelling.

Brick-and-Mortar is the Silent Contender

Yes, digital is king, but let’s be clear India is still a touch-and-feel market. Traditional retail isn’t dying—it’s evolving. Supermarkets and hypermarkets pulled in USD 35.2 Mn in 2023 and will push that to USD 42.9 Mn by the end of 2025. Convenience stores? Even bigger, rising from USD 209.5 Mn in 2023 to USD 254.7 Mn by 2025.

And here’s a clue, Tata-Tesco’s Star Bazaar expansion from 41 to 200 stores isn’t a coincidence. Big players know that Ayurveda isn’t just a wellness trend—it’s the future of FMCG.

 The Battle for Market Supremacy is Heating Up

This isn’t a market—it’s a battleground. The Titans are clashing:

  • Dabur – 22.95% market share (still leading the charge)
  • CavinKare – 15.57% (holding strong)
  • Patanjali – 9.35% (rising fast, rewriting the rules)
  • Procter & Gamble & Himalaya – 15% combined (bringing global muscle to the fight)

Meanwhile, new-age brands are storming in, armed with aggressive digital marketing, influencer collaborations, and disruptive ingredient narratives.

Why This Market is Unmissable

Ayurveda has moved beyond being a niche and into the mainstream. Back in 2015, just 69% of Indians used Ayurvedic products, but by 2020, that figure had soared to 86%, signaling a dramatic consumer shift.

The Indian government’s push for Ayurveda is also fueling growth, with USD 628.5 Mn worth of herbal products exported in 2022 alone. The rise of digital commerce is another factor, as India’s e-commerce sector reached INR 12,739.2 Bn in 2023, and it’s only accelerating

The Game-Changing Success Stories

  1. Dabur has capitalized on Ayurveda’s popularity by expanding its Vatika Ayurvedic Shampoo range. In the first half of the financial year 2008, Dabur's Vatika shampoo achieved a 38% growth in sales volume, compared to an industry average of 10%. In terms of value, Vatika reported a 33% increase, while the industry average was 15%, according to Ken Research.
  2. WOW Skin Science’s Digital Domination: WOW Skin Science has built its success through digital-first marketing and influencer collaborations. The company’s rapid growth in direct-to-consumer sales has been significant, though.
  3. Biotique invested INR 200 crore in expanding its herbal portfolio, including shampoos, reinforcing its aggressive retail push across offline and online channels.

But There Are Landmines to Watch Out For

  • Fake Products Are Killing Trust – Counterfeit herbal shampoos are flooding e-commerce platforms, confusing consumers and damaging credibility.
  • Lack of Differentiation is a Death Sentence – If you’re just another herbal shampoo on the shelf, you’re invisible.
  • Consumers Need Convincing – A portion of the market still thinks herbal shampoos work too slowly. Brands that smash this myth will take the lead.

The Future key is Hyper-Personalization

By 2029, this market will cross USD 663 Mn—but here’s the thing: playing it safe won’t cut it. The next big play? Men’s grooming, baby care, and customized hair solutions.

Dabur’s Ayurvedic baby shampoo line is already setting the trend. Next up? Hyper-personalized haircare, where consumers get formulations tailored to their scalp type, hair concerns, and even local climate conditions. For you, the question isn’t just if herbal shampoo will dominate—it’s how fast you can stake your claim in this booming market.

The Ayurvedic revolution is no longer on the horizon—it’s already reshaping the beauty industry.

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