We all are used to drinking coffee and consuming caffeine-containing products to keep our energy levels high. But it turns out that it does more than just that.

Lately, there have been a lot of references to coffee as one possible treatment for hair thinning, or shedding. Recent research studies have observed that caffeine can stimulate hair loss and slow down hair fall, even if applied topically to the affected area.

Coffee is a brewed drink prepared from roasted seeds, called coffee beans, of the coffee plant. They are seeds of coffee cherries that grow on trees in over 70 countries, cultivated primarily in Latin America, Southeast Asia, and Africa. Green unroasted coffee is one of the most traded agricultural commodities in the world. Due to its caffeine content, coffee often has a stimulating effect on humans. Today, coffee is the third most popular drink in the world, behind water and tea.

People have been using coffee on their hair and scalps for centuries. Sometimes it is used to darken or enhance the color of the hair. It’s also thought to make hair shinier and seemingly more voluminous. Other times, it was used in the hopes to halt or help with hair loss.

The new study, published in the International Journal of Dermatology, found that caffeine works by blocking the effects of a chemical known to damage hair follicles. Scientists from the team of Dr. Tobias Fischer at the University of Jena in Germany have found that caffeine is useful in promoting the growth of hair when used in a topical formulation. However, don’t expect to grow hair from drinking coffee as it would take at least 60 cups per day to achieve the same effect.

Researchers also found that caffeine can block the formation of DHT, which is the primary cause of genetic baldness in men and hair loss in women because of aging. As of January 2010, Alpecin Cosmetics offers topical caffeine treatments. Such treatments promise to promote growth, prevent premature hair loss and enhance root production. No undesirable side effects have been noted.

Scientists behind the breakthrough believe caffeine affects hair cells in such a way that they are able to resist the damaging effects of DHT.