HAIR CARE PRODUCTS MARKET ANALYSIS

Market Size and Trends

The hair care products market is estimated to be valued at USD 99.47 Bn in 2024 and is expected to reach USD 124.01 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 3.2% from 2024 to 2031.

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Hair care products are increasingly adopting natural and herbal ingredients owing to rising demand for chemical-free, organic, and vegan products. Consumers are wary of the harsh chemicals present in hair care products and prefer those containing natural herbs and oils such as amla, brahmi, bhringraj, cocoa butter, and others. Marketing campaigns by companies are also focusing on natural positioning and sustainability to attract conscious customers. Additionally, the male grooming segment is witnessing high growth rate as men are paying more attention to personal care routines. Product launches catering specifically to men's hair care needs through product functionality and masculine fragrance will drive market revenues over the forecast period.

Boost in Female Employment Rate

Over the past few decades, there has been a significant rise in the number of women joining the workforce across the globe. This can mainly be attributed to increasing educational opportunities for females and changing social norms. As more women earn and become financially independent, they are able to spend discretionary funds on personal grooming and aesthetic products. Hair care products is one such category that has directly benefited from this driver.

With busy schedules and professional lives, women now pay more attention to maintaining a neat, polished hairstyle. They look for hair styles and solutions that last throughout the day and do not require much maintenance. This has increased the demand for hair conditioners, serums, and protective styling products. Working women also have less time to visit salons regularly for hair treatments. Thus, the trend of at-home hair care solutions through leave-in conditioners, masks, and keratin treatments have gained widespread traction.

Market Concentration and Competitive Landscape

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Incorporation of Natural and Organic Ingredients

With rising health awareness, consumers are increasingly scrutinizing product formulations and preferring natural alternatives over chemicals. This growing preference for clean beauty has compelled hair care brands to rethink their existing product ranges and come up with more natural variants. Formulating products with organic ingredients sourced ethically has become a cornerstone of brand positioning in the current market landscape.

Consumers particularly watch out for parabens, sulfates, silicones, and other questionable chemicals in hair products. They wish to avoid harmful long-term effects of these ingredients and look for natural emollients and nourishers instead. This change in buying behavior has led to the rise of independent brands solely focused on natural hair care. Moreover, even established mass brands are launching separate natural sub-brands or have removed harsh chemicals from select existing lines.

Key Takeaways from Analyst:

The hair care products market continues to grow steadily driven by rising health and beauty consciousness among consumers globally. The growing middle-class population in developing countries with increasing disposable incomes is a major driver for market growth.

Raw material price fluctuations remain a challenge as it impacts margins for manufacturers. However, development of natural and organic products can help maintain premium pricing despite higher costs. E-commerce is a fast-growing sales channel opening access to new customers beyond physical stores. Personalization based on hair/scalp type through collaboration of technology companies will increase engagement and preference for certain brands.

Beyond shampoos, conditioners and hair colors, anti-hair fall products see robust traction in developing countries. In particular, the men's grooming segment is gathering momentum spurred by changing social trends stressing personal care. Low-cost product lines targeted at value-conscious buyers in smaller towns and rural areas offer untapped potential across regions. Strategic acquisitions can strengthen established players' foothold in international markets. Overall, with growing hair care awareness and new product innovations, the market has a positive long-term outlook.

Market Challenges: High cost of premium/professional products

The high cost of premium and professional hair care products is significantly restraining the growth of the global hair care products market. While consumers are becoming increasingly concerned about the ingredients and effectiveness of the products they use, the rising prices of natural, organic and high-quality products are making them unaffordable for many. This price sensitivity is a major challenge for companies aiming to tap the potential consumer base in both developed and developing markets.

Market Opportunities: Growth of online retail channels

The growing popularity of online shopping channels among consumers represents a major opportunity for players in the global hair care products market. In recent years, there has been a significant shift towards online platforms for product research and purchases. Consumers are increasingly turning to e-commerce websites and apps to buy a wide variety of goods from cosmetics and personal care items to household supplies from the comfort of their homes. This trend has been further accelerated during the pandemic due to restrictions on movement and rising health concerns.

Online retail provides several advantages over traditional brick-and-mortar stores for hair care brands. Companies can leverage digital platforms to build engaging beauty communities, host virtual tutorials and consultations, offer personalized recommendations, targeted promotions and facilitate convenient delivery options. This allows them to better serve customers across geographical boundaries, complement offline distribution and capture new audiences who prefer the convenience and variety of online shopping experiences. 

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Insights by product type: Demand for Convenience and Effectiveness Drives Shampoo’s Dominance

Shampoo is expected to account for 29.4% share of the hair care products market in 2024, owing to convenience and effectiveness factors. As modern lifestyles become increasingly busy, consumers prioritize products that can be used quickly without much effort. Shampoo’s simple application process addresses this demand for convenience. Unlike other hair treatments that require leaving-in times or specialized techniques, shampoo allows for a quick yet thorough cleansing of the hair scalp on short notice.

Its easy, effortless application makes shampoo highly compatible with fast-paced daily routines. Busy consumers turn to shampoo knowing they can cleanse their hair within minutes in between commitments. This fits neatly into tight schedules and allows hair washing to fit around other priorities like work, family obligations and social activities.

Alongside convenience, shampoo is also a highly effective product for basic hair cleaning needs. Unlike hair oils focused on treatment benefits, or styling products aimed at specific looks, shampoo delivers reliable cleansing capabilities for diverse hair types and textures. With a wide range of formula variants addressing different hair concerns, consumers can find shampoos tailored for dryness, damage, oiliness and other needs.

This combination of being simple to use yet thorough in its core hair cleansing function means shampoo satisfies basic haircare demands for most consumers. Even those using complementary hair products like conditioners rely on shampoo to strip away excess oils, impurities and product build-up beforehand. Its irreplaceable role in daily hair maintenance routines keeps demand strong for the category across demographics.

Insights by distribution channel: Hypermarkets and Supermarkets Consolidate Distribution Due To Convenience and Value Proposition

Based on distribution channel, hypermarket & supermarket is expected to account for 34.5% of the market share in 2024. This can be attributed to the convenient one-stop shopping experience they offer consumers. Customers are able to fulfill all their haircare product needs while picking up staples and ingredients for other household needs under one roof.  Being able to compare products side-by-side, evaluate options, and make purchase decisions quickly is a key value these retail giants provide. Wide aisles allow for comfortable browsing, and centrally located hair care sections make finding desired items effortless. Varied price points across brands also means value-conscious buyers can stretch budgets further.

The household shopping trip mindset of consumers has solidified hypermarkets and supermarkets as go-to places for hair products. Bundling hair care essentials in along larger grocery runs makes financial as well as logistic sense. Frequent grocery shoppers come to depend on finding goods at competitively low prices in these large retail environments. This one-shop convenience powered by infrastructure superiority has concentrated significant market power in the hands of hypermarkets and supermarkets. While other channels like pharmacies or specialty retailers may attract niche clients, mainstream customers remain loyal to trusted supermarket experiences for affordable yet comprehensive hair care solutions.

Regional Insights

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North America has established itself as the dominant region in the global hair care products market over the years. The region is expected to account for 42.2% of the market share in 2024. With the presence of key manufacturers like Procter & Gamble, L'Oreal and Unilever, the U.S. and Canada account for the bulk of production and consumption in the region. These companies have been in the business for decades and have built strong brand recognition through extensive marketing and product innovation. As a result, consumers in North America have developed strong loyalty towards major brands and are willing to pay premium prices.  These leading brands also dominate retail shelves, making their products easily accessible to consumers. E-commerce has further boosted discoverability and trialed new brands can challenge incumbents. However, private labels from major retailers like Target, Walmart, etc. are increasingly giving mainstream brands tough competition on price. Exports from North America into Latin America and Asia Pacific have also been growing steadily, aiding the regional leadership.

The hair care products market in Asia Pacific region has emerged as the fastest growing in recent years, with China and India as the main drivers. Changing lifestyle and increasing disposable incomes are causing consumers to spend more on personal grooming. The large, youthful population is highly influential online and open to new trends from Western markets. Local brands in Asia Pacific have updated their formulations and packaging to appear more premium and match evolving preferences.  E-commerce has had a transformative impact here, exposing consumers to global as well as niche domestic brands. Multinational corporations too have strengthened their presence through both acquisitions and by developing customized products for the diverse Asian beauty standards and hair textures.

Market Report Scope

Key Developments

• March 2023, CODE, the brand under the Nourish Pvt. Ltd. company, announced the expansion of its haircare portfolio with the launch of its new hair serum.
• In 2023, Dabur Vatika launches rosemary hair growth oil with hibiscus and coconut oil
• In January 2022, Garnier, a L'Oréal brand, launched "No Rinse Conditioner" across Europe.
• In 2020, Aveda, a cosmetics company, announced that all its hair care, hair color, body care, makeup, and aroma products are now 100% vegan
• In 2020, In December, Herbal Essences, a brand of hair care products line by Procter & Gamble, launched a new range of aloe vera hair care range globally and across the Arab region. The collection contains several hair care products, ranging from leave in hair oil mist, shampoos, and conditioners.

*Definition: The hair care products market consists of various products that are used to clean, treat, style, and enhance the appearance of hair. This includes shampoos, conditioners, hair color, hair styling products like gels, mousses, and hairsprays, hair oil, serums, and other hair treatments. The goal of these products is to keep hair clean, manageable, and hydrated while protecting it from damage.

Market Segmentation

• Product Type Insights (Revenue, USD Bn, 2019 - 2031)
  • Shampoo
  • Conditioner & Mask
  • Hair Oil
  • Hair Gels
  • Hair Color
  • Others (Serum, Comb, etc.)
•  Distribution Channel Insights (Revenue, USD Bn, 2019 - 2031)
  • Hypermarket & Supermarket
  • Pharmacy & Drug Stores
  • Specialty Store
  • Online
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • L’Oréal S.A.
  • Beiersdorf AG
  • Procter & Gamble (P&G)
  • Unilever
  • Johnson & Johnson Services, Inc.
  • Amorepacific
  • The Estée Lauder Companies Inc.
  • Kanebo Cosmetics Inc.
  • Himalaya Global Holdings Ltd.
  • Shiseido Co., Ltd.
  • Lotus Herbals Pvt. Ltd.
  • Natura & Co.
  • Moroccanoil
  • The Estee Lauder Companies Inc.
  • Perse Beauty Inc.
  • John Master’s Organic
  • Vogue International LLC (OGX)
  • Real Purity Inc.
  • Essential Care (Organics) Ltd.
  • Rahua Classics
  • Natulique
  • Art Naturals