PROFESSIONAL HAIR CARE MARKET ANALYSIS

Market Size and Trends

The global professional hair care market is estimated to be valued at USD 36.18 Bn in 2024 and is expected to reach USD 52.87 Bn by 2031, growing at a compound annual growth rate (CAGR) of 5.6% from 2024 to 2031.

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The rising demand for hair styling products along with the increasing consciousness towards aesthetics are expected to drive the growth of the market. Furthermore, the growing availability of a variety of professional hair care products catering to specific hair problems is also expected to support the market growth. Product innovation with natural and herbal ingredients coupled with increasing disposable income of consumers. In developing nations are expected to present lucrative opportunities for the players operating in the professional hair care market in the upcoming years.

Global Rise of the Online Purchase of Professional Hair Care Products

With the global pandemic making store visits difficult, consumers around the world have embraced online shopping like never before. This has provided a tremendous boost to the online sales of professional hair care products that were previously confined to physical store shelves and salons. Customers can now purchase a wide range of shampoos, conditioners, serums, styling tools, and coloring solutions from the comfort of their homes.  Leading brands have expanded their presence on e-commerce platforms like Amazon to cater to the growing demand. New direct-to-consumer brands are also entering the market with innovative product formulations and powerful digital marketing strategies focused on social media engagement. Users can now read reviews, compare attributes, and have the products delivered right at their doorsteps. This convenience of online shopping is appealing hugely to time-strapped consumers with busy lifestyles. The abundance of product information and video tutorials available online have also empowered consumers to experiment with styles and haircare regimens typically done by professionals. Self-service behaviors have increased wherein people treat themselves at home rather than visiting salons for every small task. This phenomenon has been further accentuated due to social distancing norms during the pandemic. Online retailers and brands are thus able to gain a more direct connection with customers and can even provide personalized advice from experts sitting miles away.

Market Concentration and Competitive Landscape

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The global professional hair care market has been experiencing strong growth in recent years, driven by consumers' increasing focus on natural and sustainable products. There is a rising demand for hair care solutions that are crafted from organic, natural ingredients and are free from harsh chemicals. Many consumers now consider the ingredient list and eco-friendliness of products as important as the results.  This change in preferences is largely a result of growing health and environment consciousness. People have become more aware of the impact of chemical-laden products on their bodies as well as the planet. Rising pollution levels and concerns around climate change have pushed them to seek cleaner, greener options. At the same time, research has demonstrated some links between chemical-heavy styling products and hair damage or other health issues over time. These developments have significantly fueled the demand for natural and sustainable hair care worldwide. Brands have taken note of this seismic shift in buyer behavior. They are actively removing questionable ingredients from formulations and switching to organic, plant-based alternatives. Many are also focusing on eco-friendly packaging made from recyclable or biodegradable materials. Some have even achieved certifications from respected organizations like COSMOS or USDA for their natural and sustainable routines.

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Professional hair care includes hair treatments such as hair coloring, hair straightening, hair restoration services, and others that are usually offered at salons, spas, and parlors. These advanced hair care treatments and services involve the usage of premium quality products and technologies that come at a higher cost compared to regular consumer products. The prices of professional hair treatments and full service haircuts at premium salons can range anywhere from USD 50 to over USD 100. This makes such advanced hair care routinely accessible mainly to consumers with higher disposable incomes. The average working individual may not be able to afford to avail expensive professional hair services and treatments on a very frequent basis. This limits the repeat usage and overall adoption of professional hair care products and services among middle and lower income demographics. The COVID-19 pandemic of 2020-21 further exacerbated this issue by causing financial hardships for many. According to a survey conducted by the US Bureau of Labor Statistics in 2021, over 15% of American households reported having difficulty paying for usual household expenses including personal care services during the pandemic year. Such economic uncertainties discourage the spending on expensive hair treatments and styling in professional salons.

 Opportunities: Emergence of organic and natural hair care products

In recent years, consumers have grown more conscious about the ingredients used in personal care products and their impact on both personal health as well as the environment. There is a strong preference for products that are free from harmful chemicals, silicones, parabens, sulfates and other ingredients known to cause toxicity issues. This change in tastes and preferences is primarily being led by millennials and Generation Z consumers who want to use hair care products that are natural yet effective. They are willing to pay more premium prices for products made from high quality natural extracts and organic plant butters and oils that nourish and moisturize the scalp without causing any damage. Many professional salons and stylists have also noticed this shift in demand from their clients who want to use natural, chemical-free products at salons as well as for home use. As a result, several major hair care brands along with smaller organic brands have launched new professional as well as retail ranges based on natural and organic ingredients. For example, in 2020, L'Oréal Paris launched its new EverPure range made from 97% naturally derived ingredients including botanical extracts and natural oils. Similarly, Pai Chamomile & Rosehip Calm Hair Serum launched in 2022 contains certified organic ingredients like chamomile and rosehip seed oil to hydrate and soothe scalp. This shift towards green washing formulations with natural extracts to meet consumer demand is a major trend in the industry currently.

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The shampoo segment is expected to occupy 38.4% share in 2024 of the global professional hair care market in terms of product type. This is primarily attributed to the versatility of shampoo products and their daily usage among consumers. Shampoos are widely used for various hair care needs ranging from cleansing and volumizing to conditioning and repairing. They contain ingredients that gently remove impurities from the hair and scalp while nourishing and hydrating.

Insights By Distribution Channel: Business-to-Consumer Distribution Holds the Largest Share

The business-to-consumer (B2C) distribution channel is expected to account for 62.3% of the market share in the global professional hair care industry in 2024. There are a few fundamental factors that provide an edge to the B2C model over its B2B counterparts. Firstly, salons and retailers selling directly to end customers offer convenience of access that bolsters sales volumes. Walk-in consumers can pick products of their choice depending on haircare routines without having to make special orders. This boosts impulse purchases and trials of new items.  Secondly, the experience economy is increasingly driving consumers to salons for premium services and advice beyond just haircuts or coloring. During these visits, stylists and store associates are able to efficiently recommend suitable product assortments and regimen based on hair analysis. Their expertise guides customers towards appropriate routine essentials and premium offerings to complement services. B2C distribution leverages a set of mutually beneficial relationships between brands, salons and retailers. While the latter gain via product variety and margins, brands get valuable shelf space and trials through personal recommendations. Promotional activities involving loyalty programs and seasonal deals further reinforce bonds. Such optimized partnerships amplify sales across the distribution chain.

Regional Insights

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North America continues to lead the global professional hair care market driven by high consumer spending across major countries in the region with 36.7% share in 2024. The U.S., in particular, has a large and affluent customer base who are very conscious about fashion trends and personal grooming. Many international hair brands have established a strong presence in the country over decades and have come to dominate the professional salon industry. This wide availability of products and the popularity of salon services has made hair care a significant consumer category.  Besides domestic demand, North America is also a major importer of hair care items from other developed markets. Countries export sophisticated hair coloring solutions, premium hair sprays, and serums to salons and distributors across the U.S. and Canada. Overall, the professional hair care supply chain in North America is highly systematized to meet consistent needs of its customers. Industry participants also invest significantly in continual training of hairdressers to keep them updated with the latest techniques and products trends.

On the other hand, the Asia Pacific region has emerged as the fastest growing regional market for professional hair care in recent years. Countries like China, India, and Indonesia are experiencing rapid urbanization which has boosted spending on personal looks and grooming. Rising disposable incomes have also increased trial rates of salon services beyond metro areas. International hair brands have stepped up their presence in key APAC markets through new store openings, partnerships with local distributors, and targeted digital promotions. The evolving consumer base in Asia Pacific has become more receptive to imported hair care items priced at premium points. Going forward, continued economic growth, thriving salon industry, and expanding middle class are projected to drive the APAC professional hair care market at a strong pace.

Market Report Scope

Key Developments

• In February 2024, the acclaimed singer and performer, Beyoncé introduced her highly anticipated line of hair care products, marking her official foray into the beauty industry
• In January 2023, Henkel, a multinational company specializing in consumer and industrial products, completed the acquisition of Shiseido Professional. This strategic move was aimed at bolstering Henkel's footprint in the Asia Pacific region's professional hair care market. By integrating Shiseido Professional's expertise and product portfolio, Henkel aimed to enhance its offerings and strengthen its position in this rapidly growing market segment.
• In January 2023, Procter & Gamble (P&G), a global consumer goods company, completed the acquisition of Mielle Organics, a textured hair care brand founded by Black entrepreneurs. This strategic move was undertaken with the aim of diversifying and expanding P&G's product range to better cater to the needs of individuals with textured hair.
• In February 2022, Honasa Consumer, the parent company of Mamaearth, successfully acquired the hair care brand and salon business of BBLUNT from Godrej Consumers for a sum of Rs 134 crore. This strategic acquisition was aimed at expanding Honasa Consumer's presence in the hair care market and strengthening its portfolio of offerings.
• In 2023, a U.S.-based professional hair brand, Redken was launched in India on Nykaa

*Definition: The global professional hair care market includes products that are specifically formulated to be used by professional hair stylists and colorists on their clients. This includes professional hair coloring products, hair styling tools and appliances, hair treatments like oils and serums, shampoos, and conditioners. These products are typically sold through professional beauty supply stores and salons, as they are higher quality formulations that produce longer-lasting and better hair results than regular retail hair care products.

Market Segmentation

•  Product Type Insights (Revenue, USD Bn, 2019 - 2031)
  • Hair Coloring
  • Shampoo
  • Styling Agent
  • Straightening & Perming Product
•  Distribution Channel Insights (Revenue, USD Bn, 2019 - 2031)
  • Business to Business (B2B)
  • Business to Consumer (B2C)
    • Hypermarkets/Supermarkets
    • E-commerce
    • Salons
    • Specialty Stores
    • 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 Group
• Procter & Gamble
• Henkel AG & Co. KGaA
• Unilever
• Estée Lauder Companies Inc.
• Kao Corporation
• Revlon Inc.
• Coty Inc.
• Shiseido Company, Limited
• Amway Corporation
• Fable & Mane
• Aveda Corporation
• Avon Products Inc
• Johnson & Johnson
• Natura & Co.
• Professional Hair Labs
• PLZ Corp