The Indian hair oil market is not only thriving, it’s transforming. As consumers become more ingredient-conscious and wellness-oriented, the demand for effective, clean, and natural hair oils is soaring. This makes it a perfect time for entrepreneurs and beauty startups to enter the market with their own hair oil brand.
However, launching a full-fledged manufacturing setup from scratch can be overwhelming and expensive. That’s where third-party manufacturing comes in. By collaborating with a reliable manufacturing partner like Clean Beauty, you can focus on building your brand and customer base while your products are crafted with precision, safety, and quality.
In this guide, we’ll walk you through exactly how to start a hair oil business using a third-party manufacturer, step by step.
Launching a hair oil brand doesn’t require setting up your own factory. You can partner with a third-party manufacturer to handle the production while you focus on branding, marketing, and distribution.
This blog explains how to go about it, from ideation to choosing ingredients, branding, legal compliance, and working with a partner like Clean Beauty to bring your vision to life.
Step 1: Define Your Brand Vision & Niche
Before you even think of the product, think of your brand. What kind of hair oil are you launching, and for whom?
Ask yourself:
- Are you targeting hair fall, dandruff, premature greying, or scalp nourishment?
- Will your oil be traditional, ayurvedic, or modern and clinically backed?
- Is your tone premium, family-focused, Gen Z-friendly, or rooted in tradition?
A clear brand positioning helps guide every decision, from ingredients to packaging to promotions.
Example Niches:
- Anti-hair fall oil for postpartum women.
- Beard oil for men.
- Teen-safe, lightweight, nourishing oils.
- Cold-pressed ayurvedic oil for hair growth.
Step 2: Research Your Market
Understanding your competition and target audience is crucial. Study:
- What ingredients are trending in haircare?
- Which brands are doing well (and why)?
- What are the gaps your brand can fill?
You can use tools like Google Trends, social media, and marketplaces like Nykaa, Amazon, and Flipkart to understand what buyers are looking for.
Step 3: Find a Trusted Third-Party Manufacturer
This is the backbone of your hair oil business. A good manufacturer will provide:
- High-quality, stable formulations.
- Ingredient sourcing and testing.
- Packaging and labelling guidance.
- Legal documentation and compliance support.
Clean Beauty, for example, is a GMP and Sedex-certified personal care manufacturer offering custom formulations, small MOQs, and extensive support for new brands. Our hair oil clients range from ayurvedic brands to Gen Z-centric D2C startups.
What to Look for in a Manufacturer:
- GMP certification.
- Experience with haircare products.
- Custom formulation capabilities.
- Transparent costing and MOQ flexibility.
- Good client support and communication.
Step 4: Choose Your Ingredients & Formulation
Work with your manufacturing partner to co-create a formula that aligns with your brand. Common hair oil ingredients include:
Base Oils:
- Coconut Oil
- Sesame Oil
- Almond Oil
- Olive Oil
- Jojoba Oil
Actives & Botanicals:
- Bhringraj
- Amla
- Brahmi
- Hibiscus
- Fenugreek (Methi)
- Onion Seed Oil
- Tea Tree Oil
- Rosemary Extract
- Vitamin E
Discuss with your manufacturer the function of each ingredient, its benefits, stability, and compatibility.
Tip: At Clean Beauty, we also help clients formulate oils without synthetic fragrances, opting instead for essential oils that are scalp-friendly and mood-enhancing.
Step 5: Product Testing & Sampling
Ask your manufacturer to prepare small test batches or samples so you can:
- Try it yourself.
- Get feedback from target users.
- Check fragrance, texture, afterfeel, and efficacy.
Testing early helps avoid costly mistakes later.
Step 6: Finalise Packaging & Design
Even the best product won’t sell without eye-catching packaging. Work with a designer to create:
- Logo & Label Design.
- Outer Box Packaging (if any).
- Informative elements like ingredients, directions, net weight, batch number, etc.
Your manufacturer may guide you with label compliance, ingredient list formatting, and packaging material sourcing.
Step 7: Pricing Strategy
Factor in:
- Manufacturing Cost per Unit.
- Packaging Cost.
- Shipping & Logistics.
- Marketing Spend.
- Margins.
Set a retail price that allows for healthy profits across both D2C and wholesale channels.
At Clean Beauty, we help our clients understand price brackets and cost optimisation options so they can build sustainably from day one.
Step 8: Register Your Brand & Ensure Compliance
Before launch, ensure:
- Trademark registration of your brand name.
- FSSAI or CDSCO licensing, depending on product claims (your manufacturer can help).
- Barcode generation for selling offline or on marketplaces.
Clean Beauty provides full documentation support for every batch, including MSDS, COA, and label claims guidance.
Step 9: Launch Your Marketing Campaign
Create a go-to-market plan across:
- Instagram & Meta Ads.
- Influencer Gifting.
- PR Articles.
- Website SEO.
- Email & WhatsApp Campaigns.
Storytelling plays a big role in hair oil. Focus on origin stories, ingredient journeys, and founder-led videos.
Step 10: Scale Through Feedback, Retail & More SKUs
Once launched:
- Gather customer reviews.
- Optimise based on feedback.
- Explore new variants or companion products (serums, scalp tonics, etc.).
- Enter offline retail (salons, pharmacies, organic stores).
Brands that succeed long-term are those that keep iterating and evolving.
Why Choose Clean Beauty as Your Hair Oil Manufacturer?
At Clean Beauty, we’re not just manufacturers, we’re brand builders. From traditional herb-infused oils to lightweight modern blends, we’ve helped over 100+ beauty businesses launch unique hair oil products that reflect their identity.
With us, you get:
- Proven hair oil base formulas to tweak or customise.
- Transparent cost structures & low MOQs.
- End-to-end support: from R&D to packaging to documentation.
- Responsive formulation support & stability-tested batches.
You bring the vision. We help make it real.
Final Thoughts
The hair oil business in India is ripe with opportunity, but succeeding requires more than just mixing a few ingredients. With the right strategy and a reliable manufacturing partner, you can build a haircare brand that earns customer trust and stands the test of time.
If you’re ready to bring your hair oil brand to life, Clean Beauty is here to help every step of the way.
Need help getting started? Reach out to Clean Beauty for custom hair oil manufacturing that’s clean, compliant, and crafted to your brand’s values.
FAQs
1. How do I start a hair oil business in India?
Start by defining your niche, target audience, and brand vision. Partner with a trusted third-party manufacturer like Clean Beauty for formulation, testing, and compliance, then focus on branding, packaging, and marketing your product.
2. What are the benefits of using a third-party manufacturer for hair oil?
It eliminates the need for setting up your own factory. You get expert support in formulation, packaging, legal compliance, and testing, saving you time, cost, and effort.
3. Can I customise the formulation of my hair oil?
Absolutely. Clean Beauty offers full customisation of hair oil formulas. You can choose your base oils, actives, fragrance, and texture as per your brand’s promise.
4. What is the minimum order quantity (MOQ) for launching with Clean Beauty?
We offer flexible MOQs suited for startups, depending on the oil type and packaging format. It typically starts from 1000 units.
5. What certifications or documents do I need to launch my hair oil brand?
You’ll need a trademark, product label compliance, batch documentation (MSDS, COA), and, depending on your claims, CDSCO registration. Clean Beauty supports you with all the required paperwork.
6. How can I market my hair oil effectively?
Focus on storytelling, influencer outreach, and user testimonials. Use digital channels like Instagram, WhatsApp, and Amazon, and consider bundling with scalp serums or combs to increase AOV.
