India's hair industry has become a thriving business, fueling a $550 million annual sector that is a major player in global markets. With 88% of global hair exports originating from India, the country holds a dominant position in the $4 billion global wig sector, expected to see a robust 7.9% compound annual growth rate (CAGR) from 2024 to 2031, far outpacing global trends.
Zerodha co-founder Nikhil Kamath highlighted India's significant role in the global hair market, referring to the country's dominance in hair exports to over 120 countries. The industry's growth is impressive, with the Indian wig sector expanding at a remarkable 15% CAGR, twice the global average, fueled in part by e-commerce's annual growth rate of 20%.
tonsuring at temples like Tirumala Venkateswara and collecting hair from barbershops and household combs. The highly sought-after "remy hair," known for its untouched cuticles and natural alignment, fetches high prices in global markets, while the more commonly collected "comb hair" is processed in countries like China for wigs and extensions for markets in the U.S., Europe, and Africa. These products cater to the increasing demand for wigs and hairpieces globally, with studies showing that 40% of those experiencing hair loss turn to these solutions, often recommended by doctors.
In India, concerns over hair loss are rising, particularly among young people, with factors like poor gut health, irregular sleep patterns, and lifestyle changes contributing to the issue. Indian hair is highly valued for its thickness, darkness, and versatility, making it compatible with various hair types, especially European. The high quality of Indian temple hair meets strict standards for "virgin" and "remy" classifications, being chemical-free and desirable in the global market.