For India, hair is not just an asset but a booming business, fueling a $550 million annual industry that dominates global markets.
With 88% of global hair exports, India is the backbone of a $4 billion global wig sector projected to grow at a robust 7.9% compound annual growth rate (CAGR) from 2024 to 2031.
Zerodha co-founder Nikhil Kamath took to X on to share data on the country’s hair export dominance.
“The world wigs out… thanks to India,” Kamath quipped. “I’m guessing the odds of succeeding here in entrepreneurship are likely higher compared to stamping AI on a bunch of random things.”
India’s hair economy is unrivaled, with hair products traveling to over 120 countries. Growth is outpacing global trends, with India’s wig sector growing at an impressive 15% CAGR—double the global average.
E-commerce is another major driver, expanding at 20% annually.
The raw material for this industry comes from two primary sources: tonsuring and combing. Tonsuring, a ritual performed at temples like Tirumala Venkateswara, contributes over ₹33 crore annually.
This hair, labeled as “remy hair” for its untouched cuticles and natural alignment, is prized globally and fetches up to ₹33,000 per kilogram.
The bulk of India’s supply, however, comes from non-remy hair collected from barbershops and household combs. This “comb hair” is exported to countries like China for processing, where it’s transformed into wigs and extensions for high-demand markets in the U.S., Europe, and Africa.
Globally, 2 billion people suffer from hair loss, fueling demand for wigs and hairpieces. Studies show that 40% of those affected turn to these solutions, with doctors frequently prescribing them.
In India, hair loss is a growing concern, especially among youth. Poor gut health, irregular sleep patterns, and lifestyle shifts are contributing factors, with 60% of cases linked to genetics.
Thick, dark, and versatile, Indian hair is valued for its compatibility with various hair types, especially European. According to anthropologist Emma Tarlo in Entanglement: The Secret Lives of Hair, Indian temple hair meets the high standards for “virgin” and “remy” classifications due to its chemical-free condition.