Shampoo Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Shampoo Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The shampoo market is expected to register a CAGR of 4.03% during the forecast period, 2022 - 2027.

The COVID-19 pandemic created a short-term demand shift for more essential products, with consumers spending less on personal grooming products, such as shampoo. For instance, Procter & Gamble witnessed a sales drop of around 1% in its personal grooming product segment in 2020 compared to 2019. The closure of many retail outlets resulted in a negative growth rate, coupled with the consumers leaning more toward Do-it-Yourself (DIY) at-home products. However, the shift toward online channels boosted sales.

Over the medium term, anti-dandruff shampoo is anticipated to be the fastest-growing segment within the shampoo market, driven by the increased hair loss due to changing lifestyles, the convenience of using these products, poor hygiene conditions, and exposure to the environment with rising pollution levels.

Increasing celebrity endorsements and growing awareness about the harmful effects of chemicals and synthetic products are boosting the demand for natural and organic products. The ease of usage and availability of small travel-size packs are also acting as major trends in the shampoo market.

With rising awareness about the side effects of chemical formulations and evolving consumer needs for shampoo products comprising natural ingredients, manufacturers are expanding their product portfolios and placing themselves in a highly competitive shampoo market. For example, in 2020, Herbal Essences launched its Aloe Collection with sustainably and responsibly sourced aloe vera from Mexico. Shampoos with natural, silicone-free, paraben-free, and sulfate-free formulas with 80-100% naturally-derived ingredients are trending in the market. Consumer awareness about products and services and their benefits through digital media and other sources is also boosting the segment’s growth.

The beauty and personal care industry in the Asia-Pacific region is witnessing tremendous growth due to an increasing number of beauty-conscious consumers, particularly in China, Japan, Thailand, and South Korea. The hair care regime is an important aspect of their everyday life. For example, the Chinese population considers shampoos as an essential hair care product intended to keep the moisture balance of the hair. Additionally, in China, the demand for anti-hair fall shampoo is growing rapidly, mainly attributable to the high-pressure life and increasing pollution levels. Furthermore, the rapid adoption of 2-in-1 shampoos and conditioners, intended to clear the scalp and make hair soft and silky, across the Asia-Pacific region is expected to fuel the overall market in the future.

The shampoo market is highly competitive, with the presence of various international and domestic players. Key players in the shampoo market are focusing on leveraging opportunities posed by the emerging markets to expand their product portfolios, thus catering to consumers’ needs. Some of the major players in the shampoo market are L'Oréal SA, Unilever PLC, Shiseido Co. Ltd, Johnson & Johnson, Procter & Gamble Company, and Kao Corporation.

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