Hair Care Products Market to Grow at Promising 4.37% CAGR, as Demand for Hygienic Essentials Skyrockets

08, April, 2021, New York, USA – Thanks to rising demand for essential hygiene, and increased demand for disinfectant, and UV radiation shielding solution, the natural hair care products market promises tremendous growth during the 2021-2028 period. The market reached a promising valuation of nearly USD 80 billion in 2018. The market will likely register growth at 4.37% CAGR during the 2021-2028 period, to reach over USD120 billion by 2028. 

The global hair care products market is witnessing major disruption as e-commerce becomes an increasingly important tool for growth. the rise of e-commerce is taking away sales from traditional retail as e-commerce channels continues to foray into essential goods, thanks to rising adoption during the covid-19 pandemic among even the elderly. The rising adoption of digitalization, and growing demand for essential hygiene will likely make it a commendable force during 2021-2028 period. Furthermore, the rise of e-commerce promises major disruption in traditional retail, as brand value becomes less significant for end-consumers, and increased demand for natural quality products comes to the fore, banking on increasing transparency. The rising demand for natural hair care products, and increased competition with the growing entry of small players remain key drivers of growth in the global hair care products market.

Demand for Shampoos to Occupy Largest Revenue Share during 2021-2028 Period

Rising demand for natural hair care remains the key trend in driving sustainable growth in the global hair care products market. On one hand,the growing safety concerns among consumers are forcing manufacturers to include more natural ingredients. This has resulted in increased addition of raw materials like vegetable, and animal derived oils, fasts, and waxes. Furthermore, vegetable saps, extracts, raw plant materials, and coloring material of vegetable, and animal origin has also made its way into the global hair care products market with promising growth. The safety concerns associated with healthy hair improvements like strong hair growth are likely to be aided by inclusion of natural raw materials due to their growing efficacy. Furthermore, consumers with safety concerns are also willing to pay a premium to increase spending on hair care, which is a promising sign for established brands in the global hair care products market. Despite the growing fragmentation in the global hair care products market, the market remains dominated by global companies as players like Amway, Shiseido Company, Limited remain strongly ahead of the curve in the global hair care products market. The growing investment in R&D, increased traction for social media marketing, and reduced costs of distribution in the global market are expected to drive major growth for key players in the hair care products market, while simultaneously promising lower barriers of entry to new players due to digitalization.

Supermarkets to Dominate Growth in Total Revenues as E-commerce Marches On

Supermarkets continue to remain the backbone of growth for players in the hair care products market as reduction in brand appeal, and increasing demand for niche products like shampoos, the global demand for hair care products still largely comes from supermarkets. The large established chains in key markets of North America, and Europe, and growing establishment of super chains in countries like the Asia Pacific remain major drivers of growth for the global hair care products market. Furthermore, rise in appeal in emerging nations for new-age hair care products like hair styling, perms and relaxants also remain main avenues for growth in the near future. the growing acceptance of fashion trends, and changing sociocultural aspects in regions like Asia Pacific remain new drivers of growth in the global hair care products market.

Branding through Professional Hair Styling Will Open New Opportunities

The increased appeal of natural hair care products, and decrease in brand value remains a barrier to growth for established players in the natural hair care products arena. The demand for natural hair care products can be difficult to meet as sourcing of ingredients in large quantities can be difficult, and some of these ingredients also remain firmly in research stages, reducing potential efficacy. However, despite their limited efficacy, the manufacturers in the global hair care products market are forced to experiment with new products to gain attention, and keep up the brand image sustainable in the era of growing transparency in cosmetic products.

Companies like L’Oréal with professional services to recommend brand through hair stylists, and growing penetration in emerging regions seem to be on the right track to reach consumers through trusted authorities. The expansion of social media continues to play a larger role in the perception of brands today. Moreover, as small companies often emerge with more in-touch outlook with ground realities, these are likely to gain an upper hand in the increasing consumer-driven market. This may not represent a threat to the established players in the short-term, as promotions, brand value still play an immense role on consumer perception. However, the growth of small players, and decreased barriers to entry remain a key driver to expansion of the global hair care products market. 

The global Hair Care Products Market Report is Segmented as Follows:

By Type

• Shampoo
• Conditioner
• Hair Loss Treatment Products
• Hair Colorants
• Hair Styling Products
• Perms and Relaxants

By Distribution Channel

• Hypermarket/Supermarket
• Specialty Store
• Online Stores
• Pharmacies/ Drug Stores
• Convenience Stores
• Other Distribution Channels

By Geography

North America

• United States
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• Italy
• Spain
• United Kingdom
• France
• Russia
• Rest of Europe

Asia-Pacific

• India
• China
• Japan
• Australia
• Rest Of Asia-Pacific
• South America
• Brazil
• Argentina
• Rest of South America

Middle East & Africa

• Saudi Arabia
• South Africa
• Rest of Middle East & Africa