How to Start a Beard Oil and Serum Manufacturing Business in India

India’s men’s grooming industry has witnessed remarkable growth over the past decade, driven by shifting lifestyles, urbanization, social media influence, and rising awareness among men about personal grooming. Today, the Indian male grooming market is valued at over ₹18,000 crore, expanding steadily at 6–8% CAGR.

Within this booming segment, beard care products — particularly beard oils and beard serums — have emerged as one of the fastest-growing categories. As more Indian men embrace styled beards and seek proper nourishment, the demand for natural, herbal, and chemical-free beard oils is increasing across metros and rapidly growing Tier-2 and Tier-3 markets.

This strong demand, coupled with relatively low setup costs, makes it an ideal time to explore How to Start a Beard Oil and Beard Serum Manufacturing business in India. Whether you’re a startup enthusiast, cosmetic manufacturer, or aspiring grooming brand owner, this industry offers high potential and attractive profit margins.

1. Step-by-Step Guide: How to Start Beard Oil Business in India

Step 1: Conduct Market Research

Focus on:

  • Target audience: Students, young professionals, salon-goers
  • Pricing segments: Budget, mid-range, or premium herbal oils
  • Competitors: Prominent grooming brands & local manufacturers
  • Customer preferences: Organic, ayurvedic, beard growth solutions

Step 2: Develop Product Formula

Decide your product range:

  • Beard oil for growth
  • Beard serum for shine and smoothness
  • Dandruff control & anti-itch oils
  • Scented and unscented variants

Common Indian ingredient options:

  • Coconut oil, jojoba oil, almond oil, castor oil, argan oil
  • Essential oils: tea tree, eucalyptus, cedarwood, rosemary
  • Vitamin E, herbal extracts

Focus on:
✔ Non-sticky formula
✔ Skin-friendly ingredients
✔ Dermatologically safe certification

To manufacture cosmetic products in India, the following registrations are required:

Requirement

 Governing Authority
Company Registration (GST-enabled) MCA / Local Authority
GST Registration Official GST Registration Authority
Cosmetic Manufacturing License State Drug & Cosmetics Department under Drugs & Cosmetics Act, 1940
Trademark for brand name IP India
BIS Compliance (for some product types) Bureau of Indian Standards
Fire and Pollution NOC (if applicable) Local Government Authorities
Factory License Local Industrial Authority

The Cosmetic Manufacturing License is mandatory for beard oils and serums.

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2. Investment Required to Start Beard Oil Manufacturing in India

Scale of Business

Estimated Investment
Small-Scale (Home/Small Unit) ₹3–10 lakh
Medium Manufacturing Setup ₹10–30 lakh
Large-Scale Commercial Unit ₹30 lakh to ₹1 crore+

Major Cost Components:

  • Factory setup & rent
  • Manufacturing machinery
  • Raw materials & packaging
  • Licensing & certifications
  • Branding & marketing
  • Working capital for 3–6 months

3. Infrastructure & Machinery Required

Minimum 500 – 1000 sq. ft. setup including:

  • Raw material storage room
  • Mixing and formulation area
  • Bottling & filling area
  • Packaging & labeling section
  • QC/testing area

Required Machines:

  • Mixing vessels (SS-grade)
  • Perfume/essential oil handling system
  • Semi-automatic filling machine
  • Bottle capping & labeling machine
  • Storage tanks & filters

4. Business Model & Revenue Streams

You can choose from:
 ✔ Private Label / Contract Manufacturing
 ✔ Own Brand Manufacturing
 ✔ B2B / Salon Supply Business
 ✔ Online D2C (Direct-to-Customer) Model

Revenue channels:

  • E-commerce platforms: Amazon, Flipkart, Meesho
  • Your own brand website
  • Distribution network in retail stores
  • Supply to barbers & grooming salons
  • Corporate/Custom gifting and subscription boxes

5. Marketing Strategies for Success

1️. Digital Marketing (High ROI)

  • Website with SEO targeting keywords like:
     “start beard oil business in India”, “best beard oil for men in India”
  • Local SEO: Google Business Profile, reviews, area targeting
  • Influencer collaborations with grooming vloggers
  • Instagram, YouTube, and Facebook campaigns
  • Customer testimonials and before-after visuals

2️. Offline Marketing

  • Salon tie-ups and free trial samples
  • Retail distributor onboarding
  • Brand presence in men’s boutiques and cosmetic stores
  • Participation in trade fairs and grooming events

6. Challenges in Beard Oil Manufacturing

Challenge

Solution
Heavy competition from branded players Offer natural, herbal & unique formulations
Licensing and regulatory compliance Hire experienced consultant for documentation
Maintaining product quality Robust QC, dermatology testing
Distribution & brand awareness Digital-first omnichannel marketing

7. Growth Opportunities & Government Support

  • Increasing male grooming awareness boosts long-term demand
  • Huge market in Tier-2 and Tier-3 cities for affordable natural products
  • Government schemes like MSME, PMEGP, Stand-Up India, and Startup India support entrepreneurs with:
    ✔ Subsidies
     ✔ Low-interest loans
     ✔ Business advisory & training programmes
  • Scope to expand to related products like beard wash, beard cream, beard shampoo, and grooming kits

Conclusion

Starting a beard oil and serum manufacturing business in India is a profitable venture with rising market demand and supportive entrepreneurship policies. With the right licenses, high-quality product formulations, smart digital marketing, and strong branding, you can build a sustainable and scalable beard care brand.

For entrepreneurs passionate about the grooming space, now is the perfect time to enter the Indian beard care industry.

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