Mexico Hair Care Market - Growth, Trends, and Forecasts (2023 - 2028)

Mexico Hair Care Market - Growth, Trends, and Forecasts (2023 - 2028)

Mexico's hair care market is projected to register a CAGR of 4.82% over the forecast period.

• Bad lifestyle choices, including a lack of proper nutrition and stress, have made hair-related problems all-pervasive. Sourcing the concern, Mexicans are increasingly spending on hair health, further boosting the country's market of hair care products. Additionally, with the rising awareness to use personal care products made from herbs and other natural ingredients, consumers' growing hair health consciousness is giving rise to innovations in hair care products.
• Mexicans are progressively switching to herbal and plant-based hair care products over conventional offerings, portraying a promising market for hair care products with lower chemical formulations. The fashion-conscious youth is constantly aware of various hair care offerings, such as hair styling and colorant products expressing individuality. Thus, such consumer habits are driving the market.
• Key players are focusing on online distribution channels for the marketing and branding of their products to expand their product visibility. However, mass-market sectors, like hair care, continued to be victims of the price war, as grocers have started to match discounter pricing and withdraw multi-buy promotions, for example. Thus, the shoppers pay lower prices but are not encouraged to buy more volume. The factor serves as a restraint to the country's haircare market.

• The market is experiencing an escalating pull by the availability and affordability of hair care products, such as shampoo, conditioner, spray, etc., leading to enhanced consumption in the hair care market. Furthermore, the market has witnessed an increasing number of millennials experiencing hair problems like hair fall and dandruff owing to changing lifestyle patterns and an increase in stress levels among the working-class women population, which is expected to boost the demand for these products in the forecast period.
• According to the National Institute of Statistics and Geography (Mexico), in December 2021, shampoo and conditioner sales in Mexico amounted to approximately 45.9 million units, up from more than 44 million units recorded in December 2020.
• Additionally, social media and online portals have become the major platforms for consumers to gain knowledge about products or share their reviews of products they have purchased that would help other consumers while making a purchase, which, in turn, helps avoid counterfeit products of the market studied. Further, shifts in consumer preferences in hair care products encourage manufacturers to bring product innovations in packaging and natural ingredients to boost the market demand.

• The online retail channel recorded the highest growth rate in Mexico's hair care market as the trend of online shopping is gaining momentum since it is convenient for consumers to buy products online, thereby avoiding crowded stores. Consumers have the luxury of browsing and shopping for products 24x7 from the comfort of their homes. Also, the trend gained momentum, particularly after the COVID-19 pandemic, to purchase various hair care products online to save time.
• The hair care products available in online retail stores often have offers or discounts that allow customers to buy the product of their choice at a lower price when compared to those available in standalone stores. This has significantly enticed consumers to purchase hair care products from online channels during the review period.
• Some online retailers active in the Mexican market (Walmart, Amazon, Mercado Libre Mexico, Coppel, and Liverpool) constantly enhance their supply chain mechanisms to guarantee better service and delivery. These improvements include unique features like pre-booking, zero-contact delivery, gifting, and customization. As a result, e-commerce businesses have been steadily growing their market share in terms of sales and customer attractiveness on a large scale in Mexico.

Mexico's hair care market is highly competitive, with a significant share held by key players such as Unilever PLC, L'Oréal SA, Johnson & Johnson, The Procter & Gamble Company, and Genomma Lab Internacional, S.A.B. de C.V. Key players are focusing on online distribution channels for their online marketing and branding of their products, to expand their product visibility, hence, consumer base. Market leader Procter & Gamble has been doing several developments in the market, primarily focused on packaging innovation, to provide customers with convenient product size variants.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support