Australia Hair Care Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The Australian hair care market is projected to register a CAGR of 4.45% during the forecast period, 2021-2026.
The market was positively impacted by COVID-19 in 2020. The global pandemic has shown an impact on the proper functioning of the hair care industry in Australia. Due to the pandemic, people were prioritizing hygiene which boosted the demand for shampoo products. Also, the government has imposed a lockdown, which resulted in the closure of salons, which led companies to innovate at-home hair dyes for consumers. After the COVID-19 impact, some people were suffering from 'Alopecia Areata,' stress-related hair loss, which surged the demand for hair-loss treatments products.
The changing consumer dynamics, coupled with increasing product awareness, have been identified as the major driver for the market. These changes are majorly due to the high millennial population and rising women's employment. Also, there was a surge in demand for organic/natural products with exotic ingredients.
An increase in internet penetration and e-commerce companies to attract consumers is driving the sales from e-commerce, while the sales from physical retail channels continue to dominate the market.
Key Market TrendsShampoo Holds a Prominent Share in the Australia Hair Care MarketThe changing consumer dynamics, coupled with increasing product awareness, has been identified as the major driver for shampoo sales in the Australian haircare market. Additionally, the increasing cases of hair loss and hair damage shampoo products among the population have also driven the demand for shampoo in the countries. Focus on the premium sector is expected to increase among the urban and youth population, with consumers willing to spend on premium shampoo products offering faster results. Also, shampoo products designed for specific hair types are gaining popularity among users, with companies now focusing on products with rich inactive ingredients. Therefore, factors such as these are further pushing the sales of shampoo in the market studied.
Growing Demand for Organic/Natural Care ProductsIn Australia, a growing number of people gained awareness about the benefits of natural and organic products. The high demand for natural ingredients has been quite evident in the market studied, which has led to the majority of companies launching products with nature-inspired ingredients, such as plant-inspired and premium botanical ingredients. Organic hair care products are available with a variety of specifications that are specially produced for different types of hair, such as dry scalp and normal and oily scalp. Moreover, Australian consumers are getting aware of side effects caused due to harsh chemicals like ammonia in hair color, which has led consumers to choose herbal/organic hair colors. The atmospheric and seasonal changes affect hair growth to a considerable extent, which is one of the major reasons driving the consumption of organic hair care products.
Competitive LandscapeThe Australian hair care market is a competitive market, with the presence of various local and international companies. Major companies dominate the market with a major market share. Companies come up with various strategies to remain in the competition. Acquisitions and product innovations are the major strategies followed. Players are also incorporating natural/organic products in their portfolio. Some of the major players are Procter & Gamble, Unilever PLC, Henkel AG & Co. KGaA, and L'Oreal SA, among others.
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