Hair Care Products Market - Growth, Trends, and Forecast (2023 - 2028)

Hair Care Products Market - Growth, Trends, and Forecast (2023 - 2028)

The Global Hair Care Products Market is projected to record a CAGR of 4.55% over the forecasted period.

Increased consumer concerns about scalp health and problems related to hair thinning, hair loss, dandruff, and sensitive scalp are driving the demand for specialist hair care products. Consumer inclination toward hair care products recommended by professionals is also strongly driving the market. Fashion trends among consumers demanding hair styling products further accelerate salon hair care sales. For instance, the Office of National Statistics estimated that about GBP 5,480 million was spent in United Kingdom on consumption expenditure on hair salons and personal grooming establishments in 2021. The rising influence of western culture and increased consumer awareness about fashion trends and celebrity styles are expected to boost the hair care market.

The growing demand for organic/natural products for personal grooming has become one of the primary concerns for individuals. Conditioners and shampoos held a majority share of the organic hair care market due to their wide usage. A wide range of weather conditions in the country causing hair fall and hair damage problems are increasing the potential for external hair treatments.​ Anti-dandruff organic hair oils are also expected to register robust growth over the forecast period.

Consumers purchase hair care products from retail outlets for easy access while addressing their hair problems. For the past few years, the market has been primarily driven by the sales of hair oils, especially Moroccan oil, which is witnessing significant global demand. More women consumers are inclined toward hair care products due to the increased usage of heat styling tools that damage the hair. Thus, consumers are using hair care products targeted to prevent further damage to hair and reverse hair fall caused due to heat from styling tools. The amount spent on hair care products annually varies in United States. According to the Bureau of Labor Statistics, American consumers spent around USD 77.17 on hair care products in 2021, an increase from USD 64.7 in 2020. There is high demand for natural ingredients in the market, leading to most companies launching products with natural ingredients, such as plant-inspired and premium botanical ingredients. Among the organic hair care product types, such as conditioners and shampoos, serums and oils, and styling products, the former holds most of the share in the organic hair care market due to its wide usage. Owing to the demand, manufacturers are introducing natural and organic-based hair care products. Development For instance, in September 2022, Dabur India launched its new hair oil product, Vatika Neelibhringa21. It follows the ancient ayurvedic method of Tali Pak Vidhi. Anti-dandruff organic hair oils are also expected to register robust growth over the forecast period.

China is the second-largest market for hair care products worldwide, only after United States. In Asia-Pacific, the country holds the largest market share. It is expected to maintain its position during the forecast period, thus boosting the demand for hair care products and further increasing the region’s potential to become one of the largest markets for hair care products over the next five to ten years. The usage of premium hair care products is most prevalent in tier-one megacities, with increasing penetration in China’s inland tier-two and tier-three cities. The increasing internet penetration and strategies by e-commerce companies to attract consumers are driving sales from e-commerce in the Asia-Pacific region, while sales from the physical retail channel continue to dominate the market. For instance, in October 2022, Brooklyn-based hair care brand Amika entered the Chinese market–launching its cross-border personal care global flagship store on Tmall Global, as well as a store on Little Red Book (Xiaohongshu).

The hair care products market is highly competitive. Procter & Gamble, L’Oréal SA, Johnson & Johnson, Dabur India Pvt Ltd, and Unilever PLC are some leading companies in the hair care market. Apart from product innovations and mergers and acquisitions, considering environmental and human health issues, the market players are adopting sustainable initiatives to accelerate the beauty industry’s progress in addressing plastic waste. Key players focus on technology and increasing their investment in promotions and advertisements. Companies are also focusing on using natural products to provide proper care to hair.

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