Premium Hair Care Market Size, Share & Trends Analysis Report By Product (Shampoo, Dry Shampoo, Hair Color, Conditioner, Hair Styling Products, Hair Oil, Others), By Demography (Men, Women, Children), By Distribution Channel (Supermarkets and Hypermarkets, Departmental Stores, Specialty Stores, Pharmacy and Drug Stores, Online, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Premium Hair Care Market Size and Trends

The global premium hair care market size was valued at USD 99.52 billion in 2023 and is projected to reach from USD 100.25 billion in 2024 to USD 213.47 billion by 2032, growing at a CAGR of 8.85% during the forecast period (2024-2032). The premium hair care market share increase during the forecast period is related to the increased use of luxury hair care products and increasing demand for chemical-free natural hair care products.

All areas of hygiene and cosmetology that deal with body hair, facial hair, pubic hair, and other hair that grows from the human scalp are referred to as "hair care" in this sentence. Several hair care regimes are utilized, depending on a person's culture and the physical characteristics of their hair. Waxing, sugaring, and threading are treatments that let you change your hair's color, length, texture, or removal. Salons, barbershops, and day spas provide hair care services, and you can also purchase products to use at home. Although they are only offered (in the United States) by licensed experts in medical offices or specialized spas, electrolysis and laser hair removal are still available. The term "premium hair care" describes the hygienic and aesthetic attention given to the hair to preserve its attractiveness. These are more expensive and of greater quality when compared to goods manufactured in large quantities.

Key highlights

• The shampoo segment dominates the market by product.
• The women segment leads the global market by demography.
• The online segment owns the highest market share by distribution channel.

Premium Hair Care Market Growth Factors

Increase in the use of luxury hair care products

Having healthy, properly styled hair can improve a person's physical look. A crucial sign of general health is the condition of the hair. Customers can choose the ideal products for their needs more quickly because of the abundance of information available on the functionality, mode of action, results, efficacy, and formulae of premium hair care products, which supports market growth. Nowadays, hair is significantly impacted. As a result, people pay close attention to their hair care and styling routines.

• For instance, consumers spend more than USD 75 yearly on hair care products in the U.S. alone.

Consumers no longer consider basic hair care; instead, they focus on more specific objectives and finding solutions with premium hair care. Most customers want their hair care products to improve on three essential qualities: improved attractiveness, appropriate style, and unharmed health. Additionally, both men and women have long placed a high priority on hair care. Compared to the skin, face, and body, hair care is prioritized by over 30% of men and about 22% of women worldwide. Men also purchase more high-end hair care and other grooming products because of a significant change in attitude toward personal welfare. Additionally, the large male populations in emerging nations are moving away from physical labor and into white-collar occupations, which is expected to increase product demand.

Increasing demand for chemical-free natural hair care products

The main chemical components in conventional hair care products are silicone, various forms of alcohol, sodium lauryl sulfate (SLS), and preservatives like paraben. As a result of repeated use and exposure, these substances may give hair an instant style and shine but also make it brittle, unhealthy, or irritable. The younger generations of consumers are aware of these facts and avoid using products that include chemicals. They are proactively selecting natural components that offer situation-specific remedies and long-term advantages. The rising popularity of organic or natural hair care products is primarily due to their alleged health advantages and absence of adverse side effects.

Furthermore, people are becoming more knowledgeable and conscious of what they use regularly worldwide. Additionally, consumers are buying more sustainable, cruelty-free, and eco-friendly goods, particularly when it comes to cosmetics and personal care. One of the critical consumer groups for natural hair care products is the millennial generation. Because of their rising awareness of the benefits of chemical-free goods, close to 56% of millennials and Gen X consumers worldwide actively purchased natural beauty and grooming products in 2017, according to the Asia Cosmetics survey. Moreover, the natural elements stated on the package were responsible for over 40% of the shift in consumer purchasing behavior. Demand for natural premium hair care products is anticipated to increase due to a change in customer perspective toward cosmetic and personal care products based on natural ingredients.

Restraining Factors

High prevalence of counterfeiting

Since the last ten years, the worldwide beauty and personal care sector has experienced remarkable expansion, outpacing that of many fast-moving consumer goods (FMCG), generating significant profits for established and emerging businesses. Due to the enormous financial potential of the global beauty and personal care market, there has been a simultaneous increase in the production of fake beauty and cosmetic items, which has grown to be a sizeable business in and of itself. The majority of high-end hair care products operate similarly.

Additionally, the need for upscale hair care continues to be threatened by counterfeiting on a global scale. It is widespread in the growing Asian economies, particularly India and China, with a sizable consumer base for such products. One of the region's main worries for premium hair care businesses is the significant prevalence of counterfeit hair care products in these nations because such actions could erode brand recognition. These nations have a high incidence of copying or replicating the packaging and design of luxury hair care products, which poses a severe danger to the market's recent expansion.

Market Opportunities

Increasing demand for natural products and availability

Three major natural, personal, and linked factors dominate the premium hair care market. The third and most important characteristic of the world market for premium hair care is e-commerce, made possible by the extensive internet and connected devices network. Mobile internet is one of the best methods for quickly and broadly reaching many people. Thanks to constant connectivity, customers can purchase whenever and from anywhere they desire. Premium hair care products are purchased in significant quantities online due to expanding customer understanding of the mode of action, performance, efficacy, formulations, and rising interest in discovering new products.

Additionally, a sizeable portion of the market revenue is now generated through e-commerce retail channels, which are crucial in distributing and marketing premium hair care products. Thanks to online sales platforms, customers no longer need to visit retail locations to browse through millions of products physically. Due to rising consumer spending on personal well-being, rapidly rising internet access, the introduction of mobile shopping apps, and the availability of safe and convenient payment gateways, e-commerce and online retail sales are predicted to experience significant growth in the upcoming years.

Regional Insights

Asia-pacific: dominant region with 6.9% market share

Asia-Pacific is the most significant global premium hair care market shareholder and is estimated to exhibit a CAGR of 6.9% over the forecast period. The major trend in 2020 was organic premium hair care products, as many Asian consumers became aware of the many advantages of luxury cosmetics made from sustainably derived materials. Silver continues to be supported by skepticism regarding the effectiveness of essential anti-aging hair care solutions. Consumers the region's natural aging process. Due to rising consumer expenditure and a growing taste for luxury personal care products, there has been a significant increase in the demand for high-end hair care products in the region.

Furthermore, the region's expanding middle-class population is one of the key elements driving the demand for high-end hair care products. These customers look for high-end, high-quality hair care products. Markets outside the significant metros have performed exceptionally well in recent years, and the premium hair care market is expected to continue expanding rapidly. This industry is increasing due to rising consumer discretionary money, which supplements shopping selections, and a rising share of middle-class consumers who spend on high-end personal care items.

Europe: fastest growing region with 6% market share

Europe is anticipated to exhibit a CAGR of 6% over the forecast period. The demand for high-end organic and natural hair care products is rapidly rising in Europe. European consumers gravitate to organic and natural luxury hair care products due to increased scalp-related issues like hair loss and itching. Manufacturers are working on providing goods with natural ingredients in response to consumers' shifting tastes for herbal and organic items.

• For instance, L'Oréal (France) introduced a "new generation" line of salon-only professional hair care products in 2019. These hair care products have natural, 80–100% naturally derived components, silicone-free, paraben-free, and sulfate-free recipes. More people are choosing natural products for issues relating to their hair.

Additionally, research by Cosmetics Europe found that 71% of customers in the region view personal care items, including hair care products, as indispensable in their everyday lives. Such endeavors fuel the local market for high-end natural hair care products.

North America emerged as one of the fastest-growing regions in the global market. One of the main drivers of product demand in the region is the rising customer interest in various high-end hair care products and rising online beauty expenditure. One of the critical haircare markets in North America, particularly the United States, dramatically boosts the demand for premium haircare products. Most North American nations have had a rapid economic expansion, giving their citizens more purchasing power. This enables them to choose luxury hair care and other cosmetics. North American consumers are sophisticated customers who demand more expensive goods of greater quality with improved functionality and packaging. The demand for organic and natural haircare products is rising in the area. The demand for organic and high-end hair care products is anticipated to be driven by strong customer interest in products free of hormones and pesticides.

In Latin America, and the Middle East and Africa, the premium haircare industry is expanding, with leading companies investing in new product launches and developments and capturing customers' attention. Women are increasingly interested in finding solutions to hair thinning, hair loss, and scalp issues. Hair care products that promote thicker, healthier hair, quicker hair growth, damage repair, and deep nourishing have grown in importance among women in the area. Sales of high-end hair care brands have increased as a result.

Premium Hair Care Market Segmentation Analysis

By product

The market is further segmented into shampoo, dry shampoo, hair color, conditioner, hair styling products, hair oil, and others. The shampoo segment dominates the global market and is projected to exhibit a CAGR of 5.9% over the forecast period. Shampoos are a crucial component of a personal hygiene routine. The increasing prevalence of many hair-related issues, such as dandruff, hair fall, oily hair, dryness, and itching, is blamed for the rising need for shampoos. The market for luxury shampoo is expanding thanks to consumer lifestyle changes and environmental problems, including growing pollution, which is terrible for the health of the hair and scalp.

Additionally, consumers are spending more to maintain a healthy lifestyle. They are paying more attention to their hygiene, increasing demand for shampoos and other personal care items.

• For instance, Ouai (U.S.) introduced its new line of high-end hair care products in April 2021.

This range includes several shampoos that are appropriate for all different hair textures. Such measures are anticipated to increase market demand and intensify competitiveness.

By demography

The market is further segmented into men, women, and children. The women segment dominates the global market and is predicted to exhibit a CAGR of 6.0% during the forecast period. The demand for high-end hair care products is expanding as more women find employment. Women are more likely to have numerous hair-related issues like hair fall, grey hair, etc., due to high stress levels, long hours at the office, poor work-life balance, and other factors. Ladies have extensively demanded high-end hair care products because they can use them to preserve their preferred appearance.

Women have switched to herbal and organic products over the past several years. The demand for high-end hair care products has also increased as women become more aware of the advantages of utilizing natural products over those made of chemicals due to the adverse effects those products have on their health and hair. As a result, there are several growth potentials for premium natural and organic hair care products. The growth of this market sector is also being fueled by an increase in the number of product launches, partnerships, and expansions made by manufacturers in the herbal and organic premium hair care industry.

By distribution channels

The market is further segmented into supermarkets and hypermarkets, department stores, specialty stores, pharmacy and drug stores, online stores, and others. The online segment owns the highest market share and is predicted to exhibit a CAGR of 6.4% over the forecast period. With a market share of over 26.2%, the internet channel was the largest category in 2020. Consumers purchase through these channels because of the convenience and broad selection of online brands. Additionally, several online retailers offer their goods at a lower cost than their physical counterparts, which is expected to increase the channel's ability to sell goods. Several leading luxury hair care companies sell their products online, including The Estee Lauder Companies Inc., L'Oréal, Johnson and Johnson Plc, and Unilever. The online distribution channel has improved customer involvement for market participants.

The availability of an extensive range of international brands, free shipping, easy refund policies, huge discounts, and cash on delivery are just a few of the value-added services provided by online retailers that are helping to drive up the sales of high-end hair care products through this channel. Consumers purchase luxury hair care, skincare, and other beauty items online because it is simple for them to shop for a wide variety of brands and goods that are accessible at comparably lower prices. Consumers are increasingly purchasing high-end hair care products from online stores thanks to expanding internet usage and various technological improvements. The COVID-19 pandemic, which caused stringent lockdowns and social exclusion, has given the online channel much impetus. Customers could only buy things online, further increasing this channel's revenues.

Recent Developments

• April 2024 - Shiseido unveiled its TSUBAKI brand’s new line featuring Fermented Rice Water, which claims to enhance hair shine and softness by improving moisture retention and elasticity. 
• June 2024 - Keraplast, a New Zealand biotech company, expects its functional keratin solutions would benefit from brands and consumers seeking more specialized haircare uses and claims.
• January 2024 - L'Oréal announced the launch of its Green Sciences initiative, which includes the development of eco-friendly packaging and the use of biotech ingredients, such as microalgae-derived oils, to enhance hair health while minimizing environmental impact.