Hair care is an overall term for hygiene and cosmetology involving the hair which grows from the human scalp, and to a lesser extent facial, pubic and other body hair. Hair care routines differ according to an individual's culture and the physical characteristics of one's hair. Treatments including waxing, sugaring, and threading can be used to color, trim, shave, pluck, or otherwise remove hair. Hair care services are offered in salons, barbershops and day spas, and products are available commercially for home use. Genetics, health and proper nutrition is important for hair health. Care of the hair and scalp skin may appear separate, but are intertwined because hair grows from beneath the skin.
The global professional hair care market is expected to surpass US$ 28.8 billion by the end of 2028 in terms of revenue, exhibiting a CAGR of 5.3% during the forecast period (2021 to 2028).
Drivers
Consumer preference is shifting to organic-based and herbal-based hair care products owing to growing awareness pertaining to adverse effects of chemicals in hair care products. Many companies are offering natural hair care products, which is benefiting the market but works as a restraint for companies with chemical-based product formulation. For instance, Aveda Corporation, an American cosmetics company offers several natural plant-based hair care products such as rosemary leaf extract and ginseng oil. In addition to this, key players operating in the market are progressively focusing on developing new products to address consumer demand. For instance, Patanjali, an Indian multinational conglomerate, offers various organic-based and herbal-based products such as patanjali kesh kanti reetha hair cleanser shampoo, patanjali amla hair oil, etc. Thus, majority of companies are launching new organic hair care products. These organic hair care products are made from nature-inspired ingredients, such as plant-inspired and premium botanical ingredients.
Among regions, North America held a dominant position in the global professional hair care market in 2020, accounting for 31.0% market share in terms of revenue, followed by Europe, and Asia Pacific. Growing per capita expenditure and presence of well-established salon/hair care services have driven the demand for professional hair products across the region. According to the U.S. Bureau of Economic Analysis, consumer spending on cosmetics in the U.S. increased from US$ 12,955.5 Billion in 2019 to US$ 13,723.7 Billion in the third quarter of 2021.
Figure 1. Global Professional Hair Care Market Revenue Share (%), By Region, 2020
Market Restraints
The high cost of raw materials coupled with less availability of professional hair care products across the existing distribution channels is restricting the market growth. A large number of people with sensitive hair experiences an allergic reaction from products such as shampoo, cleanser, serum, and others due to toxic chemical use which is hampering the global professional hair care market. On October 30, 2018, the U.S. Food and Drug Administration (FDA) published the new colour additive regulations and banned the use of lead acetate in cosmetics intended for colouring hair on the scalp. This regulation also made some stringent laws for hair colouring ingredients. For instance, colour additives used in cosmetics must be approved by the U.S. FDA. In addition to approval, a number of colour additives must be batch certified by FDA if they are to be used in hair colour cosmetics (or any other FDA-regulated product) marketed in the U.S. According to the World Trade Organization (WTO), in 2018, the European Union restricted 22 hair dye substances by adding them to the Annex III of the Cosmetics Regulation. Some of those substances include 1,4-benzenediamine, 2-methyl, 2,5-diaminotoluene sulphate and 1,3-benzenediol, among others. Thus, such stringent regulations are discouraging the investment in the market, thereby, restraining the market growth.
| Report Coverage | Details | ||
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| Base Year: | 2020 | Market Size in 2020: | US$ 19.3 Bn |
| Historical Data for: | 2017, 2018 and 2019 | Forecast Period: | 2021 to 2028 |
| Forecast Period 2021 to 2028 CAGR: | 5.3% | 2028 Value Projection: | US$ 28.8 Bn |
| Geographies covered: |
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| Companies covered: |
Fable & Mane, Henkel AG, Procter & Gamble Co., Unilever Corporation, Kao Corporation, Aveda Corporation, Avon Products Inc., L’Oreal S.A., Revlon, Inc., Johnson & Johnson, Natura & Co., and Coty Inc. |
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Market Trends
Along with digital platform, wide variety of ingredients and products for different scalp and hair type is trending the global professional hair care market. Increasing internet penetration is boosting the adoption of digital technologies. The demand for hair care products is expected to grow significantly from the e-commerce platforms due to the ease and convenience offered by online purchasing. Additionally, e-commerce platforms provide different benefits such as free home delivery, discounts on bulk orders, & gift coupons, and also save customers’ time. Internet has dramatically changed almost every aspect of human lives. It has also changed customer’s buying habits. Now, professional hair care product manufacturers gather data about new customers and maintain information about existing customers. Based upon this data, the companies provide unique online shopping experience. E-commerce companies are using various personalisation technologies to influence the buying habits of customers. Customised pop-ups, messages, emails, etc. help to pick up reviews or feedback from customers which further, helps the e-commerce companies to enhance their engagement with the customer. This has resulted in boosting the demand for professional hair care products. Chabot’s serve as a powerful lead generation tool for online retailers. Chabot’s offer quick responses to customer inquiries. It also provides customer support and improve the e-commerce checkout process.
Figure 2. Global Professional Hair Care Market Revenue Share (%), By Product Type, 2020
Among product type, shampoos segment accounted for the highest market share of 36.4% in the global professional hair care market, in 2020. This is attributable to the fact that shampoos are tailored according to variations associated with hair quality, age, hair care preferences, and specific scalp related problems, which significantly increases the demand for shampoos.
Global Professional Hair Care Market - Impact of Coronavirus (Covid-19) Pandemic
The industry has experienced a negative impact during the COVID-19 pandemic. This is attributed to the shutdown of shops due to lockdown, maintenance of limited store occupancy, and consumers being cautious of getting infected by touching packaging. For instance, the data issued by Kantar, a data analytics and brand consulting company in March 2020 reports that hair care has experienced a slowdown in its growth in 2020. Furthermore, the government's precautionary steps have resulted in the delay and reduction of products shipment, which has resulted in lower sales. For example, according to data published by the Economic Times in February 2021, the Covid-19 resulted in a global maritime commerce drop of 4.1 % in 2020.
Competitive Section
Key players operating in the global professional hair care market include Fable & Mane, Henkel AG, Procter & Gamble Co., Unilever Corporation, Kao Corporation, Aveda Corporation, Avon Products Inc., L’Oreal S.A., Revlon, Inc., Johnson & Johnson, Natura & Co., and Coty Inc.
The professional hair care products fall under the category of cosmetics and personal care products. These products are used to handle different hair problems such as hair fall, split ends, dandruff, and dry or itchy scalp by providing nourishment to them. Moreover, these products are also utilized to groom hair and get an aesthetic hairstyle. The professional hair care has a vast range of products which include shampoo, hair wax & hair conditioner, straightening & perming products, hair colorants, hair styling, and others. Moreover, these professional hair care products are available in different forms to cater to customer requirements.
Market Dynamics
The strong demand for natural ingredients has led to the majority of companies launching products with nature-inspired ingredients, such as plant-inspired and premium botanical ingredients. Conditioners and shampoos, serums and oils, and styling are among the organic hair care product types that account for the majority of the market share in the global professional hair care market, owing to their widespread use. Anti-dandruff organic hair oils are also expected to grow strongly during the forecast period. Organic hair care products are projected to see significant demand in Western Europe.
Several companies are offering customized products to meet specialized consumer needs, which range from cleansing, styling, softening, and strengthening to scalp care, damage repair, thermal protection, frizz control, color retention, moisturization, and bond-building, due to the diversity and complexity of hair types and concerns. This, together with rising awareness of hair-related difficulties as a result of climate change, air pollution, and other environmental conditions, is one of the major drivers of professional hair care market expansion.
Aside from that, with a significant trend toward sustainable manufacturing and chemical-free products, leading manufacturers are incorporating natural oils, aloe vera, cocoa butter, and other organic ingredient extracts. To expand their product portfolio and attract more customers, they are also offering multi-purpose products through online distribution channels. Other factors expected to boost the market include rising demand for luxury hair care products, increased investments in promotional activities such as celebrity endorsements, and improved product packaging.
Key features of the study:
Detailed Segmentation:
*” marked represents similar segmentation in other categories in the respective section.
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