Report

The Global Hair Care Market size was valued at USD 87.49 billion in 2022 and is projected to reach USD 147.23 billion by 2030, growing at a CAGR of 6.72% for the forecast period between 2023 and 2030. The use of hair products has significantly increased as a result of rising consumer concerns and the availability of new, safer, and more effective hair care products, which has, in turn, helped the industry grow. The emergence of dry shampoos, consumer preference for clean and natural ingredients, growing scalp care concerns, and sustainable and eco-friendly packaging techniques are among the major factors driving the hair care market, globally.
Hair Care companies are constantly working on understanding consumer dynamics and recent trends and bringing in market innovations. For example, a study conducted by Proctor & Gamble (P&G) revealed 75% of consumers prefer beauty products with sustainable or recyclable packaging material.
In June 2022, P&G brands including Head & Shoulders, Herbal Essences, Pantene and Aussie shampoo launched high-performing shampoo bars for its European market audience. These bars are formulated in a way where one bar equals 250 ml of liquid shampoo. This launch will contribute to the reduction of nearly 300 million plastic bottles annually as these bars will be packaged in recyclable FSC-certified paper boxes.
Increasing Demand for Organic Hair Care Products
There is a growing demand for natural and organic products in the global market as consumers become more aware of the harmful effects of some chemicals, such as parabens and aluminium compounds present in hair care products. The need for natural and organic hair care products has increased as a result in recent years. A significant portion of buyers favours one brand over another because of its organic ingredients.
The market under study has shown a clear demand for natural ingredients, which has prompted most businesses to introduce goods with ingredients derived from nature, such as premium botanicals and plant-based ingredients. For instance, in March 2023, GK Hair launched a new hair care range of vegan dry shampoo and also the first vegan taming treatment in the hair industry. It includes Juvexin V2, which is a plant protein from Quinoa and Pea.
Growing Concerns for Hair Loss
Numerous hair problems, including dandruff, dry, itchy scalp, hair loss, and dull hair, are becoming more common among the general population. Younger generations are noticing hair loss at an earlier age due to stress, hormonal changes, diet, autoimmune conditions, and even hair treatments. Globally, more than 35 million men and 21 million women suffer hair loss and more than 85% of the hair transplant surgeries done in the United States are for men.
Native Americans are immune to hair loss being caused by Androgenetic Alopecia (AGA) which is a common male pattern baldness, responsible for 95% of the hair loss cases in men. According to United Care, a hair transplant clinic in Turkey, 80% of women feel they are more confident when their hair looks great and is in good shape. Hair care companies are producing hair care products including shampoos, masks, oils and serums especially designed for those with hair loss problems. Hair loss treatment products market is likely to cross USD 4 billion by 2030.
In February 2022, Pantene, a hair care brand by Proctor & Gamble, announced the launch of the New Lengths Regimen Kit under its gold series which is designed to help retain length for longer and stronger hair.
Rising Popularity of CBD in Hair Care
CBD-infused hair care products have gained popularity in recent years due to the potential benefits associated with CBD for hair and scalp health. It is claimed that CBD-infused hair care products calm the scalp, encourage hair growth, and reduce inflammation. These goods are part of the expanding movement towards employing natural and plant-based components and have recently grown in popularity. We may anticipate more CBD-infused hair care products in the future as a result of this.
In May 2023, an India-based health company Hampa Wellness Private Limited (HWPL) unveiled a line of hemp-based hair care products harnessing the strength of full-spectrum, CBD-rich hemp leaf extract and all-natural, organic components. According to a July 2019 article from the U.S. Food & Drug Administration, the 2018 Farm Bill improved and legalized the use of three hemp seed products in the country's food supply: hemp seed protein powder, hulled hemp seed, and hemp seed oil. The producers boosted their use of such items as a result of this legalization.
Growing Significance of Scalp Care
Growing scalp concerns globally encompass a wide range of issues that affect the health and condition of the scalp. These concerns can vary in severity and may be influenced by factors such as genetics, lifestyle, environmental conditions, and overall health. Therefore, scalp care has become a significant category in the field of hair care. The hair care business is currently undergoing a "skinification" trend because people have started considering hair essentially an extension of their skin with more hair follicles. This can be identified by a move towards skincare claims and ingredients that are supported by scientific data.
The companies market solutions for scalp issues such as dandruff, dryness, and oiliness. These products' ingredients support healthy hair growth by balancing the pH levels of the scalp. As a result of this trend, companies have begun to produce scalp-nourishing and exfoliating products such as scalp scrubs, nourishing masks, clarifying oils, and scalp treatments. In May 2022, two new products with a focus on scalp health were released by celebrity stylist Jen Atkin's haircare line, Ouai.
Emerging Popularity of Dry Shampoos
Fast-paced lifestyles, demanding work schedules, and a requirement for living in polluted cities due to job shifts, all contribute to the growing demand for dry shampoos, which have the distinct selling feature of removing oil from the scalp without water. Consumers are gravitating more towards natural and organic hair care products since specialists believe that routine hair washing can harm hair. As a result, consumers are turning to natural dry shampoo. Additionally, moderate to severe water shortages in underdeveloped countries increase the need for dry shampoo, opening up attractive business prospects for key participants.
The global market is also being stimulated by consumers' growing preference for waterless products. For instance, in March 2022, for National Dry Shampoo Day, Klorane, a well-known brand in European pharmacies, unveiled a new formulation. The company introduced their new Volumizing Dry Shampoo with Organic Flax, which contains seven completely natural, oil-absorbing, plant-based powder cleansers.
Impact of COVID-19
The hair care market was negatively impacted by COVID-19 and resulted in numerous retail and salon store closures due to the pandemic crisis. The overall beauty and personal care industry which includes skin care, colour cosmetics, hair care, fragrances, and personal care has been impacted. As a result, there have been weaker sales of various beauty and personal care products in the international market. The use of hair colouring and styling products at home increased as a result of the lockdowns closing salons. Furthermore, the COVID-19 pandemic's sudden outbreak has caused consumers' preferences to shift away from traditional brick-and-mortar distribution channels and towards online retail platforms for the purchase of hair care products.
Key Players Landscape and Outlook
The competitive environment is dispersed because of the abundance of regional and global organisations. The main areas of competition between the competitors are price, technological advancements, and product quality. The hair care industry is growing big with the new product launches, technological advancements, and smart hair care devices by cosmetic companies that analyses the health of the hair and suggest suitable products. Therefore, several brands are constantly involved in product launches and expansions as a common practice in order to sustain their market share.
In January 2023, Unilever Ventures, a private equity arm of Unilever Plc., invested USD 2 million in Australian scalp microbiome hair care brand Straand which was founded in 2022. Straand aims to utilize this investment to expand its products in United States, United Kingdom and China.
In October 2022, Schwarzkopf Professional, a hair care brand by Henkel, collaborated with THE UNSEEN Beauty to create an innovative product- COLOUR ALCHEMY which is inspired by colours found in nature and designed with science. This innovative formula is delivered in the form of five prismatic, colour-changing hair dyes.