Keratin is an important biochemical that belongs to the category of fibrous structural proteins. Basically, a structural protein is an important biomaterial that aids in making up the outer layer of the human skin. It is mainly employed in the manufacturing of personal care products, primarily for skin, nails, and hair. The rapidly growing end-use demand, along with the drastic change in lifestyles, drives the keratin market growth. The keratin biomaterials have various benefits and advantages as both synthetic and natural products. It finds significant application in drug delivery, tissue culture, and wound healing. Also, the increasing research and development to introduce eco-friendly products at highly competitive prices provide an impetus to the market growth.
The U.S.: The Largest Exporter of Haircare Products Globally
Hair shampoos were the world's 591st most traded product, with a total trade of USD 5.37 billion in the year 2018. Between the years 2017 and 2018, the exports of hair shampoos rose by 12.5%, from USD 4.77 billion to almost USD 5.37 billion. In 2018 the top exporters of hair shampoos were Thailand with USD 494 million, followed by Germany and France, accounting for USD 432 million and USD 430 million, respectively.
Hair products are anticipated to be the fastest-growing segment in terms of the U.S. exports to China. The exports have surged by 32.7% over the past three years, as per the International Trade Administration. The hair products comprise 15% of the total domestic personal care and cosmetics market, growing at a rate of 3.5% from the previous year. Several foreign companies that manufacture locally in China dominate the market.
Some of the prominently renowned players of hair and beauty products, such as Procter and Gamble and L’Oréal, have forever been at the top in the market. The imports of U.S. products are expanding across all product segments, such as shampoos, hair preparation, and hair spray. Shampoo is the most swiftly growing segment, followed by other specialty styling products. The rapidly changing lifestyle, increasing use of keratin products in drug delivery, wound treatments, and tissue culture and growing preference for improved personal care products drive the market growth.
Rising Use of Keratin in Hair Care Products to Drive the Market Growth
The global cosmetics market has been experiencing a gradual shift towards novel ingredients with minimum side effects and better efficiency. The adoption of keratin in cosmetics products has increased the market of hair care products. The increasing demand for hair care regime and people becoming more aware of hair solutions are positively affecting the market. As per the European Trade Association for Cosmetics, the European cosmetic industry was valued at around USD 86 billion, where Germany, the U.K., Italy, and Spain are some of the leading countries in the personal care and cosmetics market in the region. Increasing investments in the cosmetic industry in terms of R&D has led to the introduction of new and sophisticated personal care products.
The market in Japan is boosted by the consumption of products in various applications, such as cosmetics and pharmaceuticals. As per the Japan Cosmetic Industry Association (JCIA), the annual cosmetic expenditure by a household with two or more than two persons is about USD 343.8 (excluding Tokyo). Moreover, as per the Association of the British Pharmaceutical Industry (ABPI), in 2016, Japan had the third-largest pharmaceutical industry in the world, valuing at USD 80,149 million.
High Cost of Keratin Treatments and Possible Health Risks to Hamper the Market Growth
A typical keratin treatment ranges from USD 300 to USD 800. The high price of keratin treatment and the availability of at-home keratin treatment kits impedes the market growth. These keratin treatments may be messy or difficult to apply correctly, specifically for consumers that have never been to a salon before for such treatments. And these at home Keratin treatments cost almost less than USD 50.
Another important factor restricting the market growth is the possible risks and side effects of using keratin-based products. The salon keratin treatments contain large amounts of formaldehyde. It was observed that some of the employees working at hair salons complained about respiratory and nosebleed problems from handling the keratin treatment products and inhaling their fumes repeatedly over time. These levels of formaldehyde tend to exceed the national safety standard for chemical exposure by at least five times.
Rise in the technological advancements in beauty salon sector to expand applications scope in shampoo and conditioners to offer new growth opportunities
In the past decade, Brazilian keratin treatments (BKTs) have taken the Saudi cosmetic industry by storm. The Brazilian keratin treatments are also known by several other names, such as albumin hair straightening, hair botox, and acetic acid treatments. The U.S. hair care services industry includes more than 80,000 institutions, which includes about 77,000 beauty salons, 4,500 barber shops, with annual revenue of approximately USD 20 billion.
As per the International Trade Administration, the countries in Asia represent some of the largest and high potential markets for export-led growth for the U.S. personal care and cosmetics industries. The Asian countries offer the industry over 3 billion potential consumers in the fastest growing global markets that comprise over 20% of the U.S. global exports in the sector. This includes consumers in well-established markets for U.S. products, such as South Korea, Japan, and Australia, which together contributed for more than USD1 billion in the U.S. personal care and cosmetics exports in the year 2015.
Figure: Summary of US Exports to the Asia Countries (USD Million)
Additionally, the countries included in the Asia Personal Care and Cosmetics Guide offer easy access to some of the highest potential future markets. It provides lucrative opportunities for the growing middles class in countries covering the region from Indonesia to Vietnam to Malaysia. The consumers of these regions aspire to the quality and sophistication of products for which the U.S. products are well known. Presently, these markets source most of its basic personal care products from the U.S. companies, including Procter and Gamble, Colgate-Palmolive, and Johnson and Johnson. Surprisingly, these consumers are moving beyond the basics of premium skin and hair care as well as color cosmetics that have opened up the door to a large array of the U.S. based cosmetics exporters.
Figure: Per Capita Cosmetics Spend in TPP Countries, 2014
Keratin Market: Segmentation
Keratin Market: Regions Covered
Central and South America and the Caribbean
The Middle East and Africa
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