How to Start a Profitable Hair Colour Brand in India: A Complete Business Guide

The hair colour business in India is growing faster than ever as consumers shift toward natural, ammonia-free, and herbal hair colour. Shoppers are moving away from harsh chemical-based products and choosing vegan, organic, and plant-powered hair colour formulations.

Hair colour today isn’t just about covering greys – it’s about self-expression, confidence, and care. From fashion shades to herbal colours and grey coverage solutions, the market caters to everyone — men, women, professionals, and home users. That means there’s a huge and diverse audience waiting for safe, effective, and high-quality hair colour products.

But launching a hair colour brand in India requires more than just a great product idea. It takes smart planning, clear strategy, and a deep understanding of hair colour manufacturing in India, compliance, branding, and marketing.

In this complete business guide, we’ll walk you step-by-step through everything you need to know — from choosing your niche and formulating natural hair colours to finding a private label hair colour manufacturer or third-party hair colour manufacturer in India, and building a successful D2C brand that stands out in a fast-evolving beauty market. 

The Rise of the Hair Colour Business in India

The hair colour business in India has grown rapidly due to changing beauty preferences and the popularity of ammonia-free, herbal, and vegan hair colours. Consumers now prefer safe, plant-based options that deliver both colour and care.

With social media trends and influencer culture driving experimentation, starting a hair colour brand in India offers a strong growth opportunity — especially for brands focusing on natural & herbal hair colour formulation.

Understanding the Indian Hair Colour Market

The hair colour market in India is expanding at a remarkable pace, with steady CAGR growth projected through 2025. The market is segmented into: 

  • Permanent and Semi-Permanent Hair Colours
  • Herbal and Organic Hair Colour
  • Fashion Shades and Temporary Colours

Top players like L’Oréal and Godrej dominate, but new-age D2C hair colour brands are gaining traction by offering clean, safe, and natural formulations. The biggest consumer demand lies in grey coverage, natural tones, and trend-driven shades.

Choosing Your Hair Colour Niche

Identifying your niche ensures long-term success. Consider these segments: 

  • Natural & Herbal Hair Colour Formulation for eco-conscious buyers
  • Chemical-Free and Ammonia-Free Hair Colour for sensitive scalps
  • Fashion Shades for Gen Z and salon professionals 

You can position your brand to serve men, women, or unisex audiences based on their lifestyle and preferences. Conduct a market gap analysis to uncover profitable opportunities in untapped segments.

Product Research & Development

Product innovation starts with quality formulation. Use natural hair colour ingredients like:

  • Henna and Indigo for deep, long-lasting colour
  • Amla, Hibiscus, and Coffee for natural shine
  • Bhringraj and Aloe Vera for nourishment

Every product should undergo safety and stability testing as per BIS and FDA standards. Formulate shades specifically suited for Indian hair tones to meet market expectations. 

Hair Colour Manufacturing in India

When it comes to hair colour manufacturing in India, you have two options: 

  • Set up your own manufacturing unit

Ideal for large-scale operations with control over formulation and quality. 

This is the most popular choice for startups and D2C brands. 

A private label hair colour manufacturer like Naturo & Orgo can help you: 

  • Develop custom herbal or ammonia-free shades 
  • Ensure BIS-certified, safe production 
  • Reduce setup costs and go-to-market time 

Legal & Regulatory Requirements

Before launching, complete all necessary registrations and certifications: 

  • MSME, GST, and Trademark registration
  • BIS certification for hair colour
  • Labeling and ingredient compliance under Indian cosmetic norms
  • Licensing from Drug Control or FSSAI (if required)

Ensuring full compliance builds brand trust and prevents future legal issues. 

Branding & Packaging Strategy

A powerful brand identity sets your product apart. Focus on: 

  • Clean and minimal design that reflects safety and purity
  • Transparent labels highlighting herbal and natural ingredients 

Follow clean beauty packaging trends popular among Indian consumers.

Pricing & Profitability Strategy

To run a successful hair colour business in India, analyze your cost structure: 

  • Raw materials and formulation 
  • Manufacturing and packaging 
  • Marketing, logistics, and retail margins 

A well-planned pricing strategy ensures profit margins of 40–60%. Start with competitive D2C pricing, then expand to salons and distributors for volume sales. 

Distribution & Sales Channels

Reach your customers through multiple channels: 

  • Online marketplaces: Amazon, Nykaa, Flipkart
  • Your D2C eCommerce site for brand control
  • Salon partnerships for professional reach
  • Export markets in the Middle East, Africa, and Asia

India-made natural hair colours are gaining global appeal — making exports a lucrative expansion path. 

Marketing Your Hair Colour Brand

Marketing is where your brand story comes alive. 

  • Use SEO and content marketing to rank for “natural hair colour” and “ammonia-free colour”
  • Leverage Instagram and YouTube influencers for tutorials and demos
  • Run Meta Ads and Google Performance Max campaigns for visibility
  • Use AI tools like ChatGPT to generate ad copy, product descriptions, and blog content

Scaling Your Hair Colour Business

Once established, grow your brand by: 

  • Introducing gel-based, foam, or herbal colour variants
  • Launching new shade collections each season
  • Expanding to B2B and export opportunities
  • Investing in automation, R&D, and AI for innovation 

Common Mistakes to Avoid

Avoid these pitfalls: 

  • Ignoring compliance and safety norms
  • Copying competitors instead of innovating
  • Neglecting branding and packaging quality
  • Skipping consumer research and feedback 

A strong foundation ensures your brand’s long-term success. 

Future Hair Colour Market Trends (2025 & Beyond)

The hair colour market trends for 2025 point toward a greener, smarter future: 

  • AI-based personalized shade recommendations
  • Plant-based and Ayurvedic hair colour
  • Biodegradable packaging innovations
  • Hybrid colour formulas combining nourishment and pigmentation

Conclusion

Building a profitable hair colour brand in India requires the right blend of product innovation, compliance, and strategic marketing. By partnering with an expert private label or third-party hair colour manufacturer in India like Naturo & Orgo, you can simplify production, maintain quality, and scale faster.

Ready to start your own hair colour brand in India?
Connect with Naturo & Orgo to create your custom natural & herbal hair colour formulations today. 

FAQs

Q. How much does it cost to start a hair colour brand in India?
Ans. Depending on scale and product range, the setup cost can range between ₹3–10 lakhs.

Q. Is the hair colour business profitable in India?
Ans. Yes, it offers strong profit margins with consistent repeat demand.

Q. What are the main licenses required?
Ans. MSME, GST, Trademark, and BIS certifications are essential for cosmetic compliance.

Q. Can I make natural or herbal hair colours?
Ans. Absolutely! The natural & herbal hair colour formulation segment is one of the fastest-growing niches.

Q. Who are the best private label hair colour manufacturers in India?
Ans. Manufacturers like Naturo & Orgo specialize in custom, herbal, and ammonia-free hair colour manufacturing in India.