Hair Care Market

Market Overview

The global hair care market size was valued at USD 84,556.80 million in 2022. It is projected to reach USD 112,270.54 million by 2031, growing at a CAGR of 3.20% during the forecast period (2023-2031). 

Utilizing various products to cleanse, maintain, and enhance the overall texture and appearance of the hair constitutes hair care. These items typically consist of gels, oils, rinses, tonics, masks, serums, shampoos, dressings, and conditioners. Several companies are currently introducing silicone- and sulfate-free products that are novel and innovative to keep up with the ever-changing hair trends. Due to the diversity and complexity of hair types and concerns, several companies offer customized products to meet the needs of specialized consumers. These products range from cleansing, styling, softening, and strengthening to scalp care, damage repair, thermal protection, frizz control, color retention, moisturizing, and bonding. This, along with the growing awareness of hair-related issues resulting from climate change, air pollution, and other environmental factors, is one of the major factors driving the market growth.

Market Dynamics

Market Drivers

Increasing Portfolios and Other Investments

The availability and affordability of hair care products, such as shampoo, conditioner, oil, and spray, among others, are exerting increasing pressure on the market and increasing consumer expenditure on hair care products. Additionally, the market has seen a rise in millennials with hair issues like hair loss and dandruff due to altering lifestyle habits, along with an increase in stress levels among the population of working-class women, which is anticipated to drive up demand for these products in the forecast period. The market's participants are employing various methods, such as product innovation, market growth, promotional investments, and others, to take market share in reaction to the rising cost of hair care products. For instance, Loreal Paris introduced the Botanicals Fresh Care hair care line in 2017 to increase its presence in the United States premium hair care market.

Social media and internet portals have emerged as important channels for customers to learn more about products or to review those they have already purchased and share with other consumers. This helps consumers avoid buying counterfeit goods on the market under study. Furthermore, producers are encouraged to introduce product innovations, such as packaging changes, to increase market demand by customers' discretionary spending on hair care products and changing consumer preferences.

Market Restraint

Counterfeit in Hair Care Products

The presence of these counterfeit items has hampered the expansion of hair care products, and customers might not be able to tell these products apart; the introduction of counterfeit goods into the market has grown to be a severe threat to the broader global economy. These products can be bought online and at tiny beauty supply shops. Furthermore, those mentioned above counterfeit and copycat hair care products are sold for far less than what is offered in the organized market. The offerings of these players in the market under study are negatively impacted by their pricing and sales methods. Additionally, because people mistakenly believe these fake goods are authentic, they dilute the value of original brands. Therefore, the growing acceptance of counterfeit goods impacts reputable enterprises' sales and brand names.

Furthermore, the genuine industry employs fewer people because it employs fewer people than it would have without counterfeiting. There are effects on other areas of the economy in addition to the direct loss of sales in the cosmetic and personal care sector. Due to the lost revenue caused by counterfeiting, the industry will purchase fewer goods and services from its suppliers, such as the chemical and packaging industries, which will harm other industries' sales and employment.

Market Opportunities

Increased Demand for Damage-Reducing Haircare Products

Hair loss and an oily scalp are two of the most prevalent hair care-related global issues consumers encounter. These issues are primarily brought on by humid, sweaty weather, pollution, and other factors that cause people to shampoo their hair every day, depleting the natural oils from their scalps and hair. The sebaceous glands generate more oil. As a result, they make the scalp greasy. According to the American Hair Loss Association, 40% of people who experience hair loss are women. While genetic causes accounted for the majority of cases, the percentage of hair loss caused by environmental factors, other chemicals, and everyday hair products is growing in market research.

There is a massive market for damage control and thinning control hair care items such as shampoo, conditioner, hair oil, and a wide variety. As a result, several global hair care companies, including Garnier, PandG, and Unilever, are vying with one another to sell a sizable portion of damage-controlling hair care products in the market. Customers are attempting to employ hair damage management products inside and out rather than forking for expensive medical procedures like a hair transplant (USD 1300-2200/1000 grafts in South Korea) or a hair tattoo. As a result, the market will be driven by consumer preference for improved damage control products throughout the forecasted period.

Regional Analysis

The global hair care market is divided into four regions: North America, Europe, Asia-Pacific, and LAMEA. 

Asia-Pacific Dominates the Global Market. Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 3.75% during the forecast period. Consumer worries regarding scalp health, particularly those connected to hair thinning, hair loss, dandruff, and sensitive scalps, are propelling the market. The harsh climatic conditions in the area are also demanding hair, fueling market expansion. The development of novel hair care products to target particular consumer groups (consumers with hair loss issues) is also gaining popularity. This, together with rising per capita spending on personal care goods in China, will eventually lead to the expansion of the market. A significant concern for people today is the rising demand for organic, natural, and personalized goods for personal care.

Europe is expected to boost at a CAGR of 2.60% during the forecast period. The Spanish hair care market has seen numerous changes with the introduction of multiple hairstyling, regrowth, and hair colorant products over the past ten years. The hair colorant and conditioner segments may have rapid adoption rates throughout the projection period, while the shampoo segment is anticipated to continue its market dominance. The market is expected to expand due to rising consumer concerns about scalp health, including hair thinning, hair loss, dandruff, and sensitive scalp. The development of cutting-edge gender- and age-specific hair care products and rising per capita spending could accelerate market expansion.

The American hair care market has seen several changes with the introduction of many hairstyles, regrowth, and hair colorant products over the past ten years. The hair colorant and conditioner segments may have rapid adoption rates throughout the projection period, while the shampoo segment is anticipated to continue its market dominance. The young, fashion-conscious population is continuously aware of the several hair care options, including products for coloring and shaping hair that highlight individuality. Therefore, the market is driven by these consumer behaviors. The market players are challenged to maintain quality and abide by numerous government requirements and regulations governing product contents and side effects while focusing on providing a wide selection of products to meet client expectations.

Segmental Analysis

The global hair care market is segmented by type and distribution channel.

Based on type, the global market is bifurcated into shampoo, conditioner, hair color, hair oil, hair creams, masks, hair styling products, and other types.

The shampoo segment is the highest contributor to the market and is estimated to grow at a CAGR of 3.50% during the forecast period. As awareness of the dangers of chemicals and synthetic products grows, so does the demand for natural, organic, and vegan hair care products. These factors, along with the ease of use and accessibility of small travel-size packs, have been identified as significant trends in the global shampoo market. Manufacturers like The Himalaya Wellness Company, Procter and Gamble, Unilever, and L'Oreal SA, among others, are expanding their product portfolios due to the increased consumer demand by heavily investing in research and development to formulate shampoos with organic/natural and clean label ingredients.

Typically, hair conditioning comes after hair washing. Manufacturers in this industry are developing novel and improved hair conditioning products to meet consumer demand while giving them an advantage over competitors. Due to their valuable qualities and convenience, multipurpose and organic conditioners are also becoming increasingly popular. For instance, the Latin American hair care brand "Ceremonia" debuted a multipurpose shampoo and conditioner set in 2021. The set is rich with nourishing nutrients and emphasizes the brand's emphasis on simple, all-natural regimens. The Latin American-sourced natural components yucca extracts, superfruit cupuaçu, and castor oil were utilized to create the "Champu de Yucca and Witch Hazel" shampoo and "Acondicionador de Cupuaçu and Castor" conditioner, which may be used to prepare, wash, exfoliate, condition, and style hair.

The main factor fueling the expansion of the hair color industry is the aging population's increasing use of hair color to conceal their grey hair. In addition, Southeast Asian nations like South Korea, Hong Kong, Taiwan, and Singapore are experiencing a faster rate of population aging than Japan, which presents a market opportunity for hair colorants. Since young people are particularly aware of their looks, the increased occurrence of grey hair among the young working population due to stress and poor nutritional causes further enhances the market's growth. As permanent hair colorants provide long-lasting hair color, demand for this specific category has increased. The market trend, which includes coloring hair in appealing colors and even getting highlights applied to make one's hair look appealing and trendy, is being embraced by a rising number of young consumers.

Customers all around the world often buy hair oils since they are thought to be crucial for hair maintenance and treatment. These oils differ in their constituents, smells, and packaging, opening up the potential for new product developments and releases to further the market's expansion. For example, coconut oil, almond oil, jojoba oil, olive oil, avocado oil, grapeseed oil, argan oil, lavender oil, lemongrass oil, safflower oil, and sunflower oil are some of the most used types of hair oils. Products like treatment oils for preventing hair loss, adding shine, and reducing frizz are offered in dropper containers for accurate dosing and application. For convenience and portability, businesses have started providing hair oils in travel-size packaging like sachets, deluxe samples, and small bottles. Additionally, a rise in the popularity of natural and organic haircare products has compelled manufacturers to spend money on research and development and introduce natural and organic products that are kind to the hair and scalp and suitable for all hair types.

Based on distribution channels, the global market is bifurcated into supermarkets/ hypermarkets, specialty stores, online stores, drug stores/pharmacies, convenience stores, and other distribution channels.

The supermarkets/ hypermarkets segment owns the highest market and is estimated to boost at a CAGR of 2.55% during the forecast period. Supermarkets and hypermarkets are also seen as places where customers can buy high-quality products at reasonable costs and have access to various things. These shops offer convenient access to shopping and are simple to find as most of them are located in crowded areas. Factors like company growth and the increase in supermarkets and hypermarkets boost sales of retail formats and significantly impact the sales of hair care goods, including shampoos, conditioners, oils, creams, and masks as styling supplies and hair colors. 

Specialty shops provide higher visibility and a large selection of shampoos and other hair care supplies, colors of hair, etc. For items that cure hair loss, thickness, and split ends, some retailers provide a special department that includes, among other things, oils, masks, serums, shampoos, and conditioners that stimulate hair development. Increased sales of hair care products through specialty stores throughout the world have been brought on by the tailored strategy and the personalized items catering to the targeted clientele. Additionally, specialty shops provide cutting-edge variations on hair care products. Many hair care products, each of which addresses a particular hair-health issue, are available at the ayurvedic specialty stores owned by Kottakkal Arya Vaidya Sala in India. 

Pharmacies and drug stores are some of the most well-known distribution channels for medicated hair care items, such as oils and lotions that provide problem-specific treatments like anti-hair fall oils, lice treatment serums, or dandruff control oils, allowing customers to purchase the items from such nearby stores. Products for hair care took advantage of their position in small pharmacies, particularly in the Asia-Pacific region. Cold-pressed extracts have been used in creating hair care products like oils by domestic producers and private-label businesses. These items have been shown to include many natural substances that promise to provide exceptional benefits against stress, discomfort, and skin-related issues.

The distribution channel's additional retail outlets include hair salons, direct sales, department stores, specialty shops, and warehouse clubs. A warehouse club (sometimes known as a wholesale club) is a retail establishment where clients can purchase large quantities of a wide range of goods, including hair and personal care products. Some well-known warehouse clubs include Costco, BJ's Wholesale Club, and Sam's Club. On the other hand, a variety store is a retail establishment that offers a broad selection of low-cost domestic items such as food and beverages, personal care and hygiene items like shampoos, oils, and masks, and small home and garden tools, office supplies, decorations, and gadgets.

Recent Developments

• March 2023- Dyson confirmed the launch of 20 new hair products globally in the next four years.
• March 2023- Vantage Personal Care launched Jeesperse® NoLo Self-Emulsifying bases for waterless hair care applications.