Number of pages: 100 | Report Format: PDF | Published date: March 31, 2023
Historical Years – 2021 | Base Year – 2022 | Forecasted Years – 2023-2031
According to the deep-dive market assessment study by Growth Plus Reports, the global hair care market was valued at US$ 82.81 billion in 2022 and is expected to register a revenue CAGR of 6.4% to reach US$ 144.72 billion by 2031.
Hair Care Market Fundamentals
The hair care market is a diverse and stably growing industry that includes products and services designed to maintain, style, and enhance hair health. This market encompasses a wide range of products, from shampoos and conditioners to hair coloring, styling products, and professional hair care services such as haircuts, styling, and treatments. The global hair care market is driven by increasing awareness of hair health, rising disposable incomes, and growing demand for personalized and premium hair care products. In recent years, there has been a growing trend toward natural and organic hair care products as consumers become more concerned about the potential health and environmental impacts of synthetic chemicals in hair care products.
The market revenue is also influenced by changing fashion and beauty trends, with consumers seeking innovative and on-trend hairstyles and colors. The rise of social media significantly impacts the hair care market, with influencers and celebrities driving demand for certain hair products and styles. The hair care market is highly competitive, with numerous companies and brands vying for market revenue share. The key players in the market include L'Oréal, Procter & Gamble, Unilever, Henkel, and Kao Corporation. The global hair care market revenue is expected to grow continuously during the forecast period, driven by factors such as increasing consumer awareness of hair health, rising demand for natural and organic hair care products, and the growing popularity of e-commerce channels for purchasing hair care products.
Hair Care Market Dynamics
The global hair care market revenue is driven by several factors. Consumers are becoming more aware of the potential harm the chemicals can cause to their hair, skin, and overall health. As a result, there has been a growing demand for natural and organic hair care products. The rise in disposable income increases expenditures on personal grooming and beauty products, including hair care. The amount spent annually in the United States on hair care products fluctuates throughout time, according to 2021 Statista research. American consumers spent about 77.17 dollars annually on hair care items in 2021. The global population and the potential customer base for hair care products are increasing. As people age, they tend to experience more hair-related problems, such as hair thinning, hair loss, and greying. This has increased demand for hair care products that address these issues. Fashion trends often dictate the hairstyles that are in vogue, which, in turn, drives the need for specific hair care products. With the rise in awareness about hygiene and cleanliness, people are paying more attention to their hair care routines, increasing demand for hair care products. Consumer preference is shifting towards organic and herbal due to increasing awareness regarding the adverse effects of chemicals on health and the environment, thus heightening the consumption rate. For instance, Aveda Corp.'s hair care products are certified organic and are made with natural plant-based ingredients like ginseng oil and rosemary leaf extract. Also, it shunned the use of hazardous substances, including phthalates, sodium lauryl sulfate, and parabens.
Technological developments have made it possible to create novel and innovative hair care products, like those that use nanotechnology, advancing the market. The beauty business is undergoing rapid change, from 3-D printing and AR/ VR (augmented reality/ virtual reality) to the use of AI in skincare. Technology is being introduced by Henkel Beauty Care to assess hair quality. A technologically driven ecosystem for individualized hair care information will push salons toward digital operation.
Overall, the global hair care market revenue is driven by consumer preferences, demographic trends, and technological advancements.
However, increasing environmental concerns and awareness among consumers can lead to a shift towards more natural and eco-friendly hair care products. This can decrease the demand for traditional hair care products that may contain harmful chemicals. The hair care market is highly competitive, with many players accounting for a large market revenue share. This makes it difficult for new entrants to gain attraction and for existing players to maintain their market position.
The global hair care market has been analyzed from four perspectives: product type, indication, distribution channel, and region.
Hair Care Market by Product Type
Based on product type, the global hair care market is segmented into hair shampoo, hair colorants, hair conditioner, hair oil, hair serum, hair spray, and others.
The hair shampoo segment accounts for the largest global hair care market revenue share. This large revenue share is attributed to their popularity and various ingredients beneficial for hair, such as vitamins, botanical extracts, minerals, and oils, encouraging hair growth from the scalp follicles. Additionally, the extensive use of shampoo is expected to increase the segment's demand boosting its revenue share. Due to the rising demand for hair care in spas, massage therapy, and beauty salons, the shampoo, conditioner, and hair oil segments all have a strong market presence. Consumer interest in the other sub-segments, like hair styling gel and hair spray, has increased due to the widespread use of various hairstyles supported by the changing fashion trend of youngsters.
Hair Care Market by Indication
Based on indication, the global hair care market is segmented into dry and dull hair, dry and itchy scalp, white and grey hair, hair loss, and others.
The hair loss segment accounts for the largest revenue share in the global hair care market. According to the American Hair Loss Association, two-thirds of American men will have noticeable hair loss by the age of thirty-five, and 85% will have noticeable hair thinning by age 50. Due to hair loss, many prefer switching shampoos propelling the segment's revenue growth.
Hair Care Market by Distribution Channel
Based on distribution channels, the global hair care market is segmented into pharmacy and drug stores, supermarkets, specialty stores, online stores, and others.
The supermarket segment accounts for the largest revenue share in the global hair care market. These businesses introduce popular products into the market quickly and give their clients exclusive discounts, which increases sales. Hypermarkets and supermarkets have been concentrating on providing several categories, such as synthetic, natural, and chemical-free products, to spark customers' interest and allow them to choose from various brands before purchasing.
Hair Care Market by Region
Based on region, the global hair care market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
North America accounts for the largest global hair care market revenue share. The regional revenue is driven by the demand for hair care products that provide nourishment, manageability, and styling benefits. The major players in the North American hair care market include L'Oréal, Procter & Gamble, Unilever, Johnson & Johnson, and Revlon. These companies offer a wide range of hair care products that cater to different hair types, concerns, and preferences. Growing demand for natural and organic hair care products also characterizes the North American hair care market. This trend is driven by consumer concerns over the use of harsh chemicals in traditional hair care products and increasing awareness of the environmental impact of these products.
Europe accounts for the second-largest revenue share in the global hair market. Rising consumer interest in different products and increasing online beauty spending are key factors fueling regional product demand. The mushrooming growth of direct-to-consumer channels and social media use has disrupted the European market. Consequently, mainstream brands such as Head & Shoulders face intense competition from 'masstige' (prestige for the masses) brands - Aveda, Palmer's, and Kérastase.
Asia Pacific is expected to register a high revenue CAGR in the global hair care market during the forecast period. The region includes countries such as China, India, Japan, South Korea, Australia, and many others, and it is home to a significant portion of the world's population. Several factors are driving the revenue growth of the hair care market in the Asia Pacific region, including increasing disposable incomes, a growing middle class, and a greater emphasis on personal grooming and appearance. In addition, there is a trend towards natural and organic hair care products as consumers become more aware of the potential health risks associated with synthetic chemicals. Some of the major players in the hair care market in the Asia Pacific region include Unilever, L'Oréal, Procter & Gamble, Shiseido, Kao Corporation, and Amway. These companies offer a wide range of products, including shampoos, conditioners, hair styling products, and hair colorants. They compete on factors such as product quality, brand reputation, and price.
The prominent players operating in the global hair care market with a large revenue share are:
The global hair care market is expected to grow at a revenue CAGR of 6.4% in the forecast period.
Unilever plc, Johnson & Johnson Services, Inc., Amway Corporation, L'Oréal S.A., and Procter & Gamble (P&G) are a few key players in the global hair care market.
The hair shampoo segment has the largest revenue share in the global hair care market.
North America accounts for the largest revenue share in the global hair care market.
Consumer preferences are evolving rapidly, and companies need to keep up with the latest trends and preferences to remain relevant. For example, there is increasing demand for natural and organic products, and companies need to cater to this demand by developing suitable products. This is thus one of the challenges for the global hair care market restraining market revenue growth.
*Insights on financial performance are subject to the availability of information in the public domain