Hair Care
Hair Care
Hair Care
The global hair care products industry witnessed moderate growth during the last five years.
The industrys key players are adopting corporate and marketing strategies such as research
and innovation strategies in order to compete in this highly consolidated industry and
develop various beauty care solutions customized for consumers in different regions of the
world.
Lucintel, a leading global management consulting and market research firm, has conducted
a competitive analysis on the hair care industry and presents its findings in Top Five Global
Hair Care Product Manufacturers: Performance, Strategies and Competitive Analysis.
Increasing demand in the emerging countries of the Rest of the World and Asia Pacific
regions due to population growth and greater disposable income has bolstered the
industrys growth.
Colgate-Palmolive
Henkel &Co. KGaA
L Oreal SA
P&G Co.
Uniliver PLC
Lucintels study indicates that growing demand for private label products and intense
competition can reduce the sales volume and hamper the global market as well as the total
revenue of the industry. The global economic slowdown and vague recovery scenarios are
likely to create challenges for the industry over the next few years.
The report analyses the industrys major drivers. Strong brand recognition enables the
industry to increase customer base and market share due to strong marketing and
advertising strategies. Increased demand for innovative products in the US provides an
opportunity to the key players to gain profitability by leveraging their brand and global
presence.
The study gives a brief overview of the top global hair care manufacturers:
This study is intended to provide industry leaders with a competitive benchmarking of the
worlds top five global hair care products manufacturers and provides up-to-date
information on the market share, profit margins, capabilities, and strategies of the leaders.
It helps current suppliers realistically assess their capabilities vis-a-vis leading competitors.
This study provides industry leaders with a competitive benchmarking of the worlds top five
hair care product manufacturers companies. The study provides up-to-date information on
the market share, profit margins, capabilities, and business strategies of the leaders. It is
designed to provide executives with strategically significant competitor information, data
analysis, and insight, critical to the development and implementation of effective marketing
and sales plans.
This report will save hundreds of hours of your own personal research time and will
significantly benefit you in expanding your business opportunities in global hair care product
manufacturers companies industry. In todays chaotic economy, you need every advantage
that you can find to keep ahead in your business.
In Lucintel's newest competitive research study on the world's hair care product
manufacturers, we have thoroughly profiled following five companies with detailed
competitive assessments:
Colgate-Palmolive
Henkel AG & Co. KGaA
L Oreal SA
P&G Co.
Uniliver PLC
Major Players Worldwide
20% 17%
10%
20%
33%
The Rs.85, 000 crore FMCG market in India is growing at a fast pace despite of
The economic downtrend. The increasing disposable income and improved standard
Of living in most tier II and tire III cities are spearheading the FMCG growth across
The nation. The changing profile and mind set of the consumers has shifted the
Thought to 'Value for Money' from 'Money for Value'.
The Indian hair care market is part of the burgeoning personal care sector under
FMCG in the country. A growing population with higher disposable incomes and
Greater consciousness about appearance has made a strong case for the Indian
Personal care sector.
Till 1991 personal care products in the country were treated as luxury goods and
Had a huge excise duty of 120% attached to them (except oral care).Since then,
However gradual taxation relaxations has brought down the excise duty level as
Low as 30%.This fact coupled with the paradigm shift of changing lifestyles of the
Indian middle class and growing income levels have made these products more
Affordable.
Personal Care products include the following sectors
Hair care
Oral care
Skin care
Cosmetics
Female hygiene
Market Share
21%
25%
13%
41%
The annual personal care segment in the country is expected to be $54.6 billion as
Of 2013 end. It is one of the highly marketed sectors in the FMCG category and
Accounts for an astounding 20% share of the total television advertising in 2014
Its one of the fastest growing segments within the personal care sector along with
Baby care and feminine hygiene. The growth in hair care industry is specifically
Robust in the hair colorants category.
As of 2009 the sector as a whole generated total revenues of $1.4 billion
, representing a compound annual growth rate (CAGR) of 15.4% for the period
Spanning 2010-2015. In comparison, the Japanese and Chinese markets grew with
CAGRs of 1.2% and 6.2%, respectively, over the same period, to reach respective
Values of $4.9 billion and $2.4 billion in 2009.
Sales of conditioners proved the most lucrative in the previous year with a total
Sales of $703 million and around 48.6% of the total market share.
This trend is expected to continue till the projected period of 2014 albeit a slower
Growth rate in the latter years.
Major Players in India
14% 11%
8%
32%
16%
19%
The recent market research report, Indian Hair Care Market Outlook 2018, portrays the
current and future scenario of all the segments in Indian hair care industry. For the study,
we have conducted interviews with various industry experts, such as cosmetic product
manufacturers and suppliers. As per our research findings, with the changing needs and
preferences of the people, cosmetic companies are modifying their product portfolios which
are fuelling the demand of hair care products. The new variants like anti-dandruff shampoos
and conditioners, hair fall therapies, products for shine, strength and length are few variants
that are highly popular in the market.
3. Introduction:
Hair care products are formulated to help nourish hair and prevent hair damage resulting
from pollution, dryness, and other factors. The hair care market comprises thousands of
products, each claiming to have unique properties. Such products could be composed of
either natural ingredients or synthetic ingredients, which are combined with other cleaning,
moisturizing or protective substances. A few products that are widely available in the global
hair care market include: shampoos, conditioners, serums, hair styling gels, hair colorants,
hair sprays and glazes, scalp nourishing products, hair masks, and hair accessories.
Popular culture represents healthy, lustrous and well-groomed hair as being central to
maintaining a youthful appearance, and this factor strongly influences purchase decisions
among consumers. Participants in the hair care market are actively engaging in conducting
R&D to formulate new, more effective and safe products. Within the global hair care
market, herbal hair care products have been enjoying an increasing popularity over the past
few years. This change has occurred because of consumers heightened awareness about
the ill effects of harsh chemicals and substances. Another factor driving growth in the hair
care market is a rapid pace of technological innovation on the formulation and
manufacturing front. Over the last few years, growth in the hair care market has been
encouraging, which has prompted a number of new entrants to gain a foothold in niche
segments. In the coming years as well, this trend is projected to continue, especially as
millions of consumers in developing economies are now becoming conscious about styling
their hair, colouring grey hair, and maintaining a healthy scalp.
In the near future, the biggest opportunities for the hair care market will lie in developing
countries such as China and India. The hair care products market will also grow on account
of a demand for hair care services such as: hair care treatments, hair spa, deep
nourishment, and such. Intensification in merger and acquisition activities has led to an
increased focus on new growth strategies such as online retail outlets and personal
grooming products. Market players will, however, have to tackle the issue of counterfeit
hair care products effectively.
The global hair care market is vast, and is composed of an array of products for different
hair types and end user segments. This market research report estimates that premium
shampoo segment will witness the highest sales. This segment will be closely followed by
hair gels and hair accessories.
Ever since the hair care industry took root, women have constituted a larger user base.
However, hair care products for men are now increasingly in demand too. Male buyers
grooming and styling preferences have changed drastically and so has their buying pattern.
Younger male consumers, especially, show a greater leaning toward styling and hair care
products that are designed for specific end results. Thus, the mens hair care market is on an
upswing and holds immense potential for innovation and new marketing strategies.
By product segment, this report divides the hair care market as: shampoo, hair conditioners,
hair spray, hair colour, hair growth products and hair styling mousses and gels, and hair
accessories
4. Objectives:
Its one of the fastest growing segments within the personal care sector along with Baby
care and feminine hygiene. The growth in hair care industry is specifically Robust in the hair
colorants category.
As of 2015 the sector as a whole generated total revenues of $1.4 billion representing a
compound annual growth rate (CAGR) of 15.4% for the period Spanning 2010-2015. In
comparison, the Japanese and Chinese markets grew with CAGRs of 1.2% and 6.2%,
respectively, over the same period, to reach respective Values of $4.9 billion and $2.4 billion
in 2014.
Sales of conditioners proved the most lucrative in the previous year with a total Sales of
$703 million and around 48.6% of the total market share.
This trend is expected to continue till the projected period of 2020 albeit a slower Growth
rate in the latter years.
Market volume
The hair care sector can be subdivided into hair care products and hair care
Services. The latter is a growing trend with clinics such as Dr.Batras, Kayas skin
Clinic etc. across the nation. We shall however examine the former in this report.
Hair care products consists of the following major sub sectors
Hair oils
Hair shampoos
Hair colorants & conditioners
Hair gels.
The hot mens sector grew more than 7%, and the 2013 study details more on mens
salon services and provides an in-depth analysis.
A dynamic shift continues from independent salons and mid-tier chains toward
family-economy chains and chair/suite rentals and upscale mens barbershops.
Manufacturers, chains and salon industry sectors should not ignore this transition.
Sales at major U.S. distributor Beauty Systems Group (BSG) grew 5.1%, while sales by
LOrals SalonCentric declined 2.7%.
Sally Beauty store sales were flat, due to lower disposable incomes and,
consequently, lower sales to both salons and consumers.
Sales of styling products increased by 4%, in part due to the increase in home
hairstyling, made easier by new genres of styling tools.
Sales of specialty products continued to grow at nearly 5%, as oils like argan, sea
buckthorn berry, macadamia and Mythic grew rapidly for all types of hair.
Sales of shampoos and conditioners grew at low single-digits, mainly due to back-bar
use after hair color and smoothing treatments, and via salon-retail for color
protection and new genres of scalp treatment products.
Mega salon-store Ulta grew by more than 20%, primarily due to salon products sold
at deep discounts combined with special offers.
Sales of Wella, Aveda and Bumble + bumble grew via direct sales, while direct sales
of Kerastase declined.
Redken and John Paul Mitchell Systems were the only major companies showing
growth. Wellas exclusive sales grew, while open-line sales declined. Sexy Hair,
Pravana and Keune showed double-digit growth