Hair Color Market

Market Overview

Hair color is a cosmetic product or procedure that changes or enhances hair color. People use hair color for various reasons, including covering gray hair, experimenting with new appearances, following fashion trends, and expressing personal style. Hair color cosmetics exist in multiple formats, each with a different level of permanency and color selection.

One of the primary factors driving the growth of the hair color market during the projection period is the significant increase in the popularity of hair coloring, accompanied by the rise in the global aging population. In addition, emerging fashion trends and considerable product innovation in product formulation and formats help to drive market growth. However, the adverse effects of continuous use of hair coloring are expected to limit market growth during the projection period.

Market Dynamics

Global Hair Color Market Drivers

Aging Population and Grey Hair Coverage

The world population is undergoing demographic changes, including an increase in the elderly population. People frequently seek solutions to graying hair as they age, creating a massive market for hair color products. According to a World Health Organization (WHO) assessment, the global population of 60 and older is predicted to more than double by 2050, reaching approximately 2.1 billion. This demographic trend directly impacts the market for hair color products, as older people regularly use these treatments for cosmetic reasons. Recognizing the demand from an aging generation, hair color manufacturers have launched unique products aimed at mature consumers. These formulas frequently include elements such as increased gray hair coverage, anti-aging qualities, and conditioning advantages to address the unique demands of aging hair.

According to Multi-Sponsor Surveys, the percentage of males who dye their hair has risen from 2% in 1999 to 7% in 2010. For older males, the ratio goes even higher, with 11% of those aged 50 to 64 stating that they color their hair. A poll of 2,000 women aged 42 to 57 found that half (49%) had spent two to six years dyeing their hair a different color than what they were born with. Consequently, the aging population impacts established markets and creates the potential for expansion in countries experiencing significant demographic changes. As a result, the hair color market trend will likely evolve over the forecast period.

Global Hair Color Market Restraints

Chemical Sensitivities and Allergic Reaction

Many people are concerned about the potential adverse effects of chemical substances often present in hair color formulations, such as ammonia and hydrogen peroxide. Allergic reactions, skin irritation, and damage to hair texture are among the reported issues. Beauty and personal care companies have developed hypoallergenic or "gentle" hair color formulations in response to these concerns. These products reduce the likelihood of allergic reactions and skin irritations, making them better suited for people with sensitive skin. Ammonia, a frequent chemical in hair color that helps open the hair cuticle for color absorption, has received criticism. When ammonia touches the skin, it can burn and irritate the eyes and nose. When ammonia dyes are applied repeatedly, they can harm the cuticle, allowing moisture to escape. This might result in dry, brittle, and curly hair.

Additionally, according to Harvard Health, those who have used permanent hair dyes are slightly more likely to get basal cell carcinoma (the most prevalent type of skin cancer). PubMed says hair color and skin type are risk factors for cutaneous malignant melanoma. The risk factor for red hair is more than 9.7 times that of black or brown hair. Regulatory agencies in the beauty business constantly review and regulate chemicals in cosmetic goods. The United States Food and Drug Administration (FDA) controls hair dyes and relaxers. The FDA has modified its color additive standards to prohibit the use of lead acetate in hair coloring cosmetics. The FDA will exercise enforcement discretion for 12 months to allow the industry to reformulate lead acetate-containing hair dye products. Compliance with rules and safety standards is critical for brands to gain and keep consumer trust.

Global Hair Color Market Opportunity

Customization and Personalization

Consumers want customized beauty products, so the beauty industry is adapting. Personalizing hair color solutions might help meet this requirement. Brands can produce unique hair color formulations that let clients mix and match shades, modify color strength, or create new colors. This enables customers to express themselves and try new looks. Generation Z has helped diversify hair colors in recent years. Gen Z's ombré may mature with pinks, blues, and purples. According to Pinterest, Generation Z and millennials may mix natural colors with bright purples, blues, and pinks. Gen Z has increased the home hair color business by buying vivid hues. Retail sales of home hair color rose 16% to USD 2.4 billion in 2020. 

Further, offering personalized consultations or online tools to help customers choose the right hair color for their skin tone, style, and lifestyle can improve the customer experience. Beauty customization is rising across categories. Personalized serums and lotions are becoming more popular. Such projects prove that people are willing to pay for products tailored to their needs.

Regional Analysis

The global hair color market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia Pacific Dominates the Global Market

Asia-Pacific is the most significant global hair color market shareholder and is estimated to grow at a CAGR of 7.2% over the forecast period. This is due to higher consumer expenditure on lifestyle goods and increased product awareness. Manufacturers are helping to expand the regional market by launching new products in these countries. Furthermore, over 90% of China's drugstores, supermarkets, beauty-product specialty firms, and department stores reopened by mid-April FY2020. The primary reason for low hair dye sales was lower consumer expenditure, which reduced demand for non-essential grooming products such as hair color. However, the situation is gradually improving, and China has begun rebuilding its economy by offering incentives to consumers and industry. Due to the factors above, the Chinese market is expected to grow at a robust CAGR.

Furthermore, Japan is one of the most critical countries in the East Asian hair coloring market, accounting for around 35% of the market in 2022. This is due to Japan's continually expanding elderly population. More than 40% of the population is already over 65 years old and is expected to climb to 60% by 2050. The aging population hinders economic growth in many ways, but it favors hair color and cosmetic businesses. Furthermore, usage is expected to increase among older people, who frequently use these hair color products to cover their grey hair.

North America is anticipated to exhibit a CAGR of 7.5% over the forecast period. The North American hair color market accounts for the second-largest market share due to the availability of cutting-edge treatment facilities, as the population's quick adoption of hair color is driving the regional market's expansion. Furthermore, rising per capita disposable income and expanding self-grooming habits among the population drive market growth. In 2023, 31% of internet purchasers in the United States spent USD 1 to USD 50 monthly on cosmetic items. Another 27% spent USD 51 to USD 100 per month. This is projected to boost the market over the forecast period.

Europe's hair color market is estimated to develop at the quickest CAGR over the forecast period, according to hair color market insights. This is owing to the expansion of the regional market, which is assisted by manufacturers launching new items in these countries. Furthermore, Germany had the most significant market share, while the UK Hair Color market was the fastest-growing in the European region.

Segmental Analysis

The global hair color market is segmented based on product type, category, form, nature, end-user, and region.

The market is further segmented by Product type into Permanent Hair Color, Demi-Permanent Hair Color, Semi-Permanent Hair Color, Temporary Hair Color, and Root Touch-Up.

Permanent Hair Color accounts for a significant share of the market. In 2023, the permanent hair color sector held the most significant market share, accounting for 55%. Permanent hair color is a long-lasting formulation that penetrates the hair cuticle and cortex, resulting in a noticeable color change. It delivers long-term benefits that last till new hair grows. Permanent hair color commonly uses ammonia and peroxide to lift and deposit color deep into the hair shaft. It is appropriate for those seeking a more permanent makeover, such as covering gray hair or attaining a full-color change.

Demi-permanent hair color is a medium-term solution that adds color without reaching the hair cortex. It usually lacks or includes ammonia in low concentrations. Demi-permanent color adds vitality and helps hide some gray hair. While it fades over several weeks, it provides more flexibility for those seeking a semi-permanent appearance without committing to a permanent color change.

The market is fragmented into Conventional, Natural, and Organic based on category.

The conventional segment generates the most revenue in the market. The conventional group held a more significant market share. Conventional hair color refers to products that use standard formulations incorporating synthetic chemicals like ammonia and peroxide. These chemicals are essential in raising the hair cuticle and depositing color into the cortex, resulting in a permanent or semi-permanent alteration. Conventional hair colors frequently offer a wide range of tints and are known for producing long-lasting and brilliant effects. Although commonly utilized, some consumers may be concerned about the possible toxicity of some substances in standard formulations.

Natural and organic hair color is a category that focuses on formulations made from plant-based or naturally occurring substances. These formulations seek to reduce the usage of synthetic chemicals, ammonia, and harsh additives often found in traditional hair colors. Color can be imparted using henna, indigo, chamomile, and aloe vera, providing nourishing and conditioning effects. Natural and organic hair color products are frequently seen as softer options, attracting customers who value a more holistic and environmentally responsible approach to hair coloring. These products are consistent with the cosmetics industry's overall clean beauty trend and sustainable methods.

Based on nature, the market is sub-segmented into Professional and consumer (DIY).

Professional influenced the market. Professionals gained market share. Professional hair color is used in salons and by qualified hairstylists and colorists. Advanced recipes with more color pigments, developers, and specialty additions are expected. Professional hair coloring delivers precise and customized results to meet consumers' needs. These formulations may offer more colors and advanced techniques, including highlighting, balayage, and color correction.
Consumer (DIY)

DIY hair color products are meant for home use without expert instruction. Its User-friendly formulations often have clear instructions. DIY hair color kits come with pre-mixed formulas or require you to combine the ingredients at home. They make hair coloring easy and affordable for DIYers. DIY hair color is available in stores, pharmacies, and online.

The market is divided into Powder, Cream, and Gel by form.

Cream and Gel occupy the maximum share of the market. The cream and gel segment has the most significant market share. Cream and gel hair color formulations have smooth, creamy, or a gel-like texture. These compositions are intended for easy application, resulting in a consistent dispersion of color on the hair. Cream and gel hair colors frequently contain conditioning ingredients that promote hair health and shine. The creamy texture allows for precise application, making it ideal for home or salon use. These compositions are commonly available in conventional and natural/organic hair color categories, providing diverse consumer preferences.

Powder hair color is supplied in a dry powder form that must be mixed with a liquid, typically water or a developer, to form a paste. This paste is then used to color the hair. Powder formulations are adaptable and available in various hair color categories, including conventional, natural, and organic. Powder hair color is well-known for its versatility in creating unique tones and its popularity in natural and organic formulations that stress plant-based chemicals.

The market is further bifurcated by End-users into Men, Women, and Unisex.

Women are the major end-users of the market. The "Women" sector includes many hair color products specifically intended for and sold to women. Women's hair color options are extensive, with various hues, formulas, and application methods. Products in this category may cater to women's preferences for bright colors, gray covering, highlights, or other individualized styling options.

The "Men" area of the hair color market focuses on products created for and marketed to males. Hair color formulations for males may consider elements such as hair texture, gray hair covering, and preferences for a natural appearance. Men's hair color products frequently come in tones that complement natural hair colors, allowing for modest enhancements or more significant modifications.

Recent Developments

• December 2023- In collaboration with B&R K.K. and Kyoto Seisakusho Co., Ltd., Kao Corporation introduced a dynamic cell production system for efficient high-mix low-volume manufacturing at the Odawara Plant (Kao Cosmetics Products Odawara) in Kanagawa Prefecture, the Kao Group's global cosmetics supply base.
• June 2023- L'Oréal Professionnel revamped iNOA hair color and developed the My Hair iD app. The brand has released a short digital video explaining the benefits of the new iNOA and My Hair ID's virtual color try-on.