Editor's note: This report is an excerpt from our sister publication, Global Cosmetic Industry. To read the full report, visit the GCImagazine.com website.
Globally, hair care has been on a trajectory of moderate growth in recent years. Last year saw a slight slowdown, recording year-on-year value growth of 2.9%, and, with a projected CAGR of 1.9% in constant terms over the 2015–2020 period, things looks set to continue in the same steady vein. While the category might not be enjoying the dynamism of other parts of the industry, hair care still has ample opportunities to branch out.
Hair Care as Wellness
Observing that dermocosmetic brands have been gaining popularity, hair care brands are also heightening their remedial claims as consumers take a more holistic approach to their well-being, viewing hair as an extension of the skin.
Basic cleansing and scent properties are now expected rather than desired in hair care, and products that assert health benefits, a natural composition or take preventative measures are becoming a priority.
Men’s Category Outgrows All
Men’s hair care is forecast to grow at a constant value CAGR of 3.6% in the 2015-2020 period, ahead of the overall growth prospects for hair care. In the West, a progressive culture is playing into this trend, as the stigma of male grooming is being lost and men no longer have to subscribe to a cleanly shaven ideal to be considered smart in the workplace.
This movement is giving men a renewed confidence to experiment and, increasingly, many men simply have more hair to maintain. In the United Kingdom this year, Estée Lauder Companies announced it will be investing in men’s reignited interest in hair care by opening Aveda barber shops in London.
In emerging markets, meanwhile, growth is fueled by economic and political change. The prospects are encouraging, particularly for the Middle East and Africa, which is projected to be the most dynamic market for men’s hair care over the next five years. In Saudi Arabia, for example, the category saw strong 24% current value growth last year, albeit from a small base.