Market Trends of Hair Care Industry
Rising Consumer Preference for Natural and Organic Shampoo
The global market is witnessing increasing demand for natural and organic products due to growing consumer awareness about the harmful effects of certain compounds, such as paraben and aluminum, in hair care products. Effective marketing and advertising campaigns are helping create awareness and generate demand for various shampoo products. The trend toward organic and natural products is also driving the growth of the shampoo market, as consumers are becoming more conscious about the ingredients used in their personal care products. The demand for different types of shampoos for various hair-related problems is expected to drive the shampoo market owing to the increasing prevalence of hair disorders such as dandruff, hair fall, oily hair, dryness of hair, itchiness, and split ends. The demand for natural/organic, vegan hair care products is growing as a result of rising celebrity endorsements and awareness of the harmful effects of synthetic and chemical products, along with ease of usage and availability of small travel-size packs, which act as significant trends observed in the global shampoo market.
Manufacturers like The Himalaya Wellness Company, Procter & Gamble Company (P&G), Unilever PLC, and L'Oreal SA, among others, are expanding their product portfolios as a result of the increased consumer demand by heavily investing in research and development to formulate shampoos with organic/natural and clean label ingredients. For instance, in 2022, Klorane added the Volumizing Dry Shampoo with Organic Flax to its dry shampoo collection. The company claims it is formulated with organic flax and seven plant-based cleansing powders to add volume, extend blowout, or freshen up hair for up to eight hours. The Volumizing Dry Shampoo is also formulated without silicones, parabens, preservatives, sulfates, and silica and utilizes 100% recyclable packaging.
Asia-Pacific Holds Largest Market Share
Asia-Pacific stands as the largest regional market for global hair care, driven by a significant population shift to urban areas and a heightened awareness of hair care practices. Collaborations between various brands and celebrities further bolster market growth. For instance, in August 2023, The Moms Co., a leading D2C brand in India known for its toxin-free and natural personal care products, launched a digital video campaign featuring Neha Dhupia to promote its Natural Protein Hair Care Range. This launch also marked The Moms Co.'s partnership with celebrity Neha Dhupia for its haircare category. Shampoos and conditioners are some of the most preferred hair care products among Asian consumers, as they are very particular about their hair care practices. Moreover, rising demand for hair colorants has been observed owing to key factors such as changing lifestyles, higher spending on personal care products, and greater influence from the Western part of the world. The growing desirability of hair colorants among all age groups and genders to either redeem lost aesthetics of the hair or make a style statement has been boosting the sales of hair colorant products across the region. According to the Ministry of Economy, Trade, and Industry, in 2022, the sales value of hair colorants in Japan amounted to USD 0.76 billion.
Factors such as high sun exposure and extreme weather conditions lead to a decrease in hair longevity. Hence, customers are looking for a solution for their hair problems, including hair loss, hair thinning, and scalp problems. This, in turn, increases the demand for hair care products across countries like Australia and India. South Korea is one of the world's most exciting and fastest-changing beauty markets, introducing industry-leading innovations in the hair care market. Korean beauty startups have been able to break into the global market owing to the huge demand for K-beauty products. Cleaner label products and claims, such as cruelty-free and eco-friendly, among others, have been gaining more prominence in the market. For instance, in June 2022, South Korean cosmetic titans Amorepacific and LG Household & Healthcare (LG H&H) together launched shampoos that can conceal grey hairs to an extent, signaling a huge demand for anti-aging hair care products. Manufacturers in the region are focusing on launching products with minimal ingredients and addressing specific concerns in line with consumer demands. For example, in August 2023, Dercos by Vichy Laboratories introduced its dermatological anti-dandruff shampoo line in Australia, formulated to address the root causes of dandruff with a proven formula.
