The global hair care market is considerably consolidated in nature, with four players holding 55% of the shares in 2015. These four companies were Procter & Gamble, Henkel, Unilever, and L’Oreal S.A. Introducing new products, especially those that are made of organic ingredients, and aggressive marketing are the two common strategies adopted by these players to dominate over rest of the competition. For instance, a product called OSiS+ was launched by Henkel Corporation in January 2014, which helps enhance hair volume. Along the similar lines, L’Oreal S.A. introduced a series of hair care products that were primarily oil based, between 2014 and 2016. Brand expansion is another fruitful approach for these players. Unilever plc. are the parent company of brands such as their product range with newer brands Lux, TRESemmé, Dove, Sunsilk, and Clear.
According to the latest report by Transparency Market Research (TMR), the global hair care market had an opportunity worth US$81.3 bn in 2015, which will rise at a CAGR of 3.0% during the forecast period of 2016 to 2024, reaching a valuation of US$105.3 bn by 2024. Most of these four companies are expected to retain their market shares over the forecast period, although some regional players are also anticipated to emerge in respective domestic markets.
Asia Pacific Remains More Lucrative Region
On the basis of product type, the report segments the global hair care market into shampoo, conditioner, hair oil, hair styling products, and hair color. Out of these, the segment of shampoo accounted for the maximum shares in 30.9% in 2015. This was a reflection of product innovation by the companies according to changing consumer needs. A vast variety of shampoos are available in the global market, with each boasting of certain exclusive benefits for the end-users. Moreover, rising cases of baldness and growing awareness among the consumers for hair care are another two factors favoring the shampoo segment of global hair care market.
Geographically, the report analyzes the opportunities available in the regions of North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. Asia Pacific, which resides nearly half of the world’s population, accounted for the maximum demand in the global hair care market at 33.12% in 2016. The report observes that India has traditionally been a lucrative market due to strong interest hair care products and will continue to dominate the demand from Asia Pacific.
Increasing Disposable Income Favoring Uptake
Increasing cases of baldness, which is a resultant of escalating pollution levels, and growing trend of hair color are two of the primary factors driving the global market for hair care. Consumers are now experimenting with a variety of colors to add to their personality and thereby extending the demand for hair color, besides consistent demand for the same from the aging population who invariably suffer from grey hair issues. Increasing disposable income among the consumers, trend toward professional hair treatment, and changing lifestyle are other factors positively influencing the global hair care market.
The report also expects the demand for products with organic ingredients to experience a surge in demand, which is a reflection of consumer’s perception of organic products to be less harmful to skin and hair. According to the lead analyst of the report, the demand for organic and products is an important trend that must be noted in the shampoos segment, although the higher pricing of these products is hindering its outreach to majority of consumer-base.
The information presented in this review is based on a Transparency Market Research report, titled, “Hair Care Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 - 2024.”
Key Segments of the Global Hair Care Market
Global Hair Care Market, by Product Type
Global Hair Care Market, by Geography
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