ID: MRFR/HC/4562-CRR | May, 2018 | Region: Global | 115 pages | Cooked Research Reports
Global Hair Care Market Research Report: By Product (Hair Styling, Shampoo, Hair Colorant, Conditioners, Hair Oil), by Application (Hair Treatment, Scalp Treatment), Distribution Channel (Hypermarkets, E-Commerce, Pharmacies) – Global Forecast Till 2023
In the global haircare market, a large number of products are available to address the growing demands for hair problems including hair and scalp treatment. In recent years, the global market for hair care witnessed a huge growth. This can be attributed to the increasing cosmetic expenditures, rising prevalence of hair related diseases, expanding hair and beauty industry, and strong marketing strategies by the players. However, increasing susceptibility to diseases such as cancer and asthma by the use of hair care products is estimated to restraint the market growth during the forecast period.
Further, the formulation of many hair care products is inclusive of various chemicals such as sodium lauryl sulfate, diethanolamine, peroxide, and others. The potential ill effect of these chemicals on health arises from itching to possible risks of asthma, cancer, and others. In the presence of such risks factors, the hair care market is witnessing increasing demands for Ayurveda products. Following the same course, a number of market players are incorporating natural composites in hair care products. Additionally, to fulfill such increasing demands, new market players such as Patanjali Ayurveda have entered the market with product lines including ayurvedic shampoos, hair oils, and others. According to the Indian Brand Equity Foundation, the penetration of the Ayurvedic hair oil penetration was estimated to be about 8.0% in 2017.
The global hair care market is expected to register a CAGR of 3.40% during the forecast period.
Source: Professional Beauty Association, Cosmetics Europe - The Personal Care Association Hair Care, Hair Care - TMA - The Myositis Association, Personal Care Products Council, ANHC Pro, World Health Organization, the U.S. Food and Drug Administration, MRFR Analysis, company annual reports, investor presentations, and conference publications.
The global hair care market is segmented by product, application, gender, distribution channel, and end-user.
By product, the market is segmented into hair styling, shampoo, hair colorant, conditioners, and hair oil. By application, the market is categorized into hair treatment, scalp treatment. By gender, the market is segmented male, female. By distribution channel, the market is segmented into hypermarkets, e-commerce, and pharmacies. By end-user, the market is segmented into home care and salons.
Figure 1:- Global Hair Care Market share, by Region
Sources: Brain Aneurysm Foundation, American Hospital Association, United Nations Economic and Social Commission for Asia and the Pacific, United Census Bureau, World Health Organization, Directorate of Industries, Expert Interview Market Research Future Analysis, Annual report, White paper, Company Presentation
The global haircare market, by region, is divided into the Americas, Europe, Asia Pacific, and the Middle East and Africa. Europe accounted for the largest market share of about 34.5% in the global haircare market. The large share is majorly attributed due to the presence of developed economies such as the U.K., Italy, and others, and growing cosmetic industries within the region. Americas accounted for the second largest market share whereas Asia Pacific is expected to grow at the fastest CAGR of 3.81% during the forecast period. The presence of huge opportunities and continuously developing economies drive the market within the region. The Middle East and Africa with the presence of low-income countries accounted for the least market share in 2016.
Further, relatively the Asia Pacific region have huge opportunities for the development of hair care market due to the presence of developing economies such as India, Australia, China, and others. In the recent years, the Fast-Moving Consumer Good (FMCG) sector of India witnessed a huge growth. This boosted the market for various hair care products such as shampoo, hair oil, conditioners, and others within the region. According to the Indian Brand Equity Foundation in 2017, the Indian FMCG sector is estimated to register a CAGR of 20.6% and is estimated to reach USD 103.7 billion by 2020 from USD 49 billion in 2016. Simultaneously, the disposable income in India has increased giving greater liberty to the individuals for higher spending on personal care products. Therefore, such changes in the lifestyle are estimated to increase the consumption rate of hair care products within the region. This can be seen as an opportunity by the market players to expand their products within the growing regions of Asia Pacific.
Key players for global haircare market
The key players for the global Hair Care market are Unilever, L’ORÉAL, Shandong Baisheng Biotechnology Co., Ltd, OLVEA Group, Oriflame Cosmetics AG, REVLON Inc, Shiseido Company, Limited, Henkel Corporations (Schwarzkopf Professional), Kao Corporation, Amway, Johnson & Johnson Services, Inc., and Procter & Gamble Co.
The global Hair care market is set to grow from USD 69,786.3 million in 2016 to USD 87,654.5 Million in 2023. This projects that the market will expand at a modest rate during the forecast period. Expanding hair and beauty industry is growing the exploitation of hair care products and is creating growth opportunities for suppliers and manufacturers of Hair care products. Market players are expanding their operations in developing countries such as China and India, as the hair care industry in these countries are witnessing a boom.
A variety of products are available in the global haircare market. On the basis of product, the market is segmented into hair styling, shampoo, hair colorant, conditioners, and hair oil. Under the shampoo segment, the major products offered in the market are inclusive of botanical/herbal, vitamin/mineral fortified, and moisturizing/ hydrating shampoos. Shampoos have been popular in the hair care market. This can be attributed to their dual function of cosmetology and therapeutics. A variety of the shampoos available in the market performs both the cleansing of hair as well as can also be used for the treatment of conditions like dandruff. Thus, the shampoo segment held the largest market in 2016 and is estimated to reach USD 30,780.1 million by 2023 from USD 24,164.4 million in 2016.
On the basis of application segment, the global haircare market is sub-segmented into hair treatment and scalp treatment. In the recent years, the hair health has degraded due to the ill effects mounted by pollution. Moreover, increasing number of cases reported for hair diseases like alopecia areata, and others, generated huge demands for hair care products. As a result, the consumption rates of the hair care products used in the treatment of the hair have increased. Thus, the hair treatment segment is estimated to be the fastest growing segment during the forecast period. The market by hair treatment segment is projected to reach USD 55,756.1 million by 2023 from USD 43,751.5 million in 2016 with a CAGR of 3.61%.
The consumers in the hair care market are characterized on the basis of their gender. The male consumers are recognized by age and segmented into various age groups which are inclusive of 18-34 years, 35-54 years, and 54+ years. Similar parameters are used to define the female segment, by gender. In the market, it is noticeable that the females spend more on cosmetics than the males and thus, on gender basis, female generates a high revenue for the market. Therefore, female segment held the largest market share in 2016 and is estimated to reach USD 37,008.5 million by 2023.
The hair care products in the market are sold with the help of various distribution channels including hypermarkets, e-commerce, and pharmacies. Both hypermarkets and e-commerce play a significant role in generating the revenue for the market. By distribution channel, hypermarkets held the largest segment of the market in 2016. On the other hand, e-commerce is estimated to be the fastest-growing segment of the market due to increasing acceptance of online shopping. The e-commerce-based hair care market is estimated to show positive growth during the projected period. The segment is estimated to reach USD 30,518.6 million by 2023 with a CAGR of 3.71%.
On the basis of the End-User, the global hair care market is segmented into home care, salons, and others. Salons segment held a majority of the market in 2016 and is estimated to be the fastest growing segment, by End-User. This can be attributed due to the increasing cosmetic expenditures and expanding beauty business industries. As a result, the global hair care market by salons segment is projected to reach USD 34,276.1 million by the end of 2023 at a CAGR of 3.71% during the forecast period.
Regional Market Summary
The global hair care market, on the basis of region, is divided into the Americas, Europe, Asia Pacific, and the Middle East and Africa. Europe accounted for the largest market share of about 34.5% in the global hair care market. The large share is majorly attributed due to the presence of developed economies like U.K, Italy, & others, and growing cosmetic industries, and within the region. Americas accounted for the second largest market share whereas Asia Pacific is expected to grow at the fastest CAGR of 3.81% during the forecast period. The presence of huge opportunities and continuously developing economies drive the market within the region. The Middle East and Africa with the presence of low-income countries accounted for the least market share in 2016.
The key players of the global Hair care market include Unilever, L’ORÉAL, Shandong Baisheng Biotechnology Co., Ltd, OLVEA Group, Oriflame Cosmetics AG, REVLON Inc., Shiseido Company, Limited, Henkel Corporations (Schwarzkopf Professional), Kao Corporation, Amway, Johnson & Johnson Services, Inc., Procter & Gamble Co. are some other players. Between 2014 and 2017, the key growth strategies adopted by the market players were that of expansion and mergers & acquisitions. The extensive growth in Hair care market is highlighting the heavy investments into expanding across borders by the companies.
The global hair care market is characterized by the presence of many global, regional, and local vendors. The market is highly competitive with all the players competing to gain market share. Intense competition, rapid advances in technology, frequent changes in government policies, and environmental regulations are key factors that confront market growth. The vendors compete based on cost, quality, and reliability. It is decisive for the vendors to provide cost-efficient and high-quality products, to survive and succeed in an intensely competitive market environment.
The growth of the market vendors is dependent on the market conditions, government support, and industry development. Thus, the vendors should focus on expanding geographically and improving their products. They primarily focus on the development of novel products. Although the international players are dominating the market, regional and foreign players with small market shares also have a presence. The international players may strengthen their presence worldwide through acquisitions during the forecast period. It has also been forecast that improvement of the global economic scenario combined with efforts to enhance infrastructure in emerging nations, is fueling the market growth, thereby making it an ideal time to new products and increase the global market share.
The vendors with better technical and financial resources can develop innovative products. Therefore, vendors must develop new technologies and stay abreast of emerging technologies that could affect the continuing competitiveness of their treatment lines in the market.
L’Oréal has a vast product portfolio in the hair care industry. The company also has a wide geographic presence as it operates in various countries across the world. They have a significant presence in North America, Europe, the Middle East & Africa, with commercial, manufacturing, and research facilities in more than one dozen countries.
Unilever PLC is also one of the world’s largest brand and leader in the hair care market. The company also has a worldwide operation and wide-ranging product portfolio.