Global Premium Hair Care Market Size & Growth Trends Analysis Report

The premium hair care market has witnessed significant growth in recent years, propelled by a combination of increasing consumer awareness, heightened consciousness regarding hair health, and a growing understanding of the importance of using top-notch products. Consumers are increasingly seeking solutions for various hair concerns including hair loss, damage, and dullness. Consequently, they are willing to invest in premium products that provide advanced formulations and targeted solutions to address these specific issues.

Additionally, the rising disposable income of consumers has played a significant role in the growth of the premium hair care market. With higher incomes, consumers have more purchasing power to afford premium products, which are often outrageously priced compared to mass-market alternatives. Moreover, the influence of social media, beauty vloggers, and celebrity associations with brands has further contributed to the growth of the premium hair care market in the past few years. Celebrity endorsements and product recommendations by influencers have created a sense of trust and aspiration among consumers, encouraging them to try and invest in premium hair care products. According to a December 2019 Edelman survey, around 63% of consumers in the 18 to 34 age group have more trust in influencer reviews than in brand-owned advertisements.

Furthermore, the demand for natural and organic ingredients in hair care products has fuelled the growth of the premium segment. Consumers are increasingly seeking products that are free from harmful chemicals and are environmentally friendly. As a result, many premium hair care brands have focused on developing natural & organic formulations to cater to this growing demand.

Impact of COVID-19

The COVID-19 pandemic has had a substantial influence on the hair care sector, and the most likely result indicates a 2.5% decline in the global market for 2020. The demand for hair care goods and services during the pandemic years decreased as a result of the widespread lockdowns, social isolation tactics, and temporary closures of salons & beauty enterprises. The demand for hair styling products, color treatments, and expert salon services declined as more individuals stayed at home and engaged in fewer social engagements.

Despite the difficult conditions, it is important to note that the global market for hair care was predicted to be worth a significant USD 87.9 billion in 2020. The sales decreased as a result of the transition towards remote employment, and virtual meetings, which also diminished the importance of personal grooming. Additionally, throughout the pandemic, production issues and supply chain interruptions had an impact on the delivery of products.

However, With the increasing desire for alternatives to salon visits, the hair care market has witnessed a surge in demand for at-home solutions, including DIY hair dye kits, hair masks, and treatments. This shift in consumer behavior has been accompanied by a notable rise in online sales of hair care products, including premium options. In 2020 alone, worldwide e-commerce sales of hair care products surpassed USD 24.26 Billion, and projections indicate that this figure could reach nearly USD 34.58 Billion by 2024. This trend highlights the evolving preferences of consumers who seek convenience and the ability to personalize their hair care routines from the comfort of their homes.

Segmentation

The market for premium hair care is segmented along a number of characteristics, including hair type, product type, and distribution method. The hair type segment includes separate categories such as dry hair, damaged hair, curly hair, and color-treated hair, allowing firms to create specialized solutions to address certain client demands.

The product type segment includes shampoos, conditioners, serums, treatments, and styling products. The distribution channel segment includes retail storefronts, e-commerce platforms, salons & spas, specialty shops, and others, giving businesses the freedom to select the channels that will best reach their target customer. These market segmentations provide companies with insightful information and chances to improve their strategy, resulting in the best possible market penetration.

Regional Analysis

The premium hair care industry has grown rapidly over the years. With various trends and preferences influencing consumer behavior, the hair care market stands out considerably across various geographical regions. The Asia Pacific region is the largest segment of the industry having a share of more than 37.8% in 2022. It has developed as a profitable market, powered by rising disposable incomes, urbanization, and a burgeoning middle class. The organic/herbal hair care industry is flourishing in recognition of countries with vibrant consumer cultures like India, China, and Japan. These nations have experienced considerable growth in the organic hair care sector over the previous years owing to their sizable populations and advantageous network externalities. However, premium hair care operations in China faced difficulties in 2021 due to their new laws around product safety and labeling. To comply with higher regulations, businesses had to invest in reformulation and packaging modifications, which increased costs and maybe caused delays. Meeting the demand for high-end hair care products in China while navigating these legal obstacles is essential for the industry's competitiveness and profitability. Therefore, marketing tactics, prevailing economic conditions, and legislative frameworks are the other major drivers that fuel the growth of premium hair care products in the Asia-Pacific region. Similarly, it was predicted that the Japan hair care market would produce sales worth over USD 2.4 Billion in the fiscal year 2022.

High discretionary income and a strong emphasis on personal care have fuelled demand for luxury hair care products in North America driven by the U.S. and Canada. The U.S. outpaces China in the cosmetics & personal care market with a market value of USD 13.1 Billion, exceeding China's market value of USD 8.3 Billion. Consumers in Europe have also placed an emphasis on high-quality formulas, natural ingredients, and innovative hair care products. The market ecology of Europe is evolving as organic and environment-friendly hair care products grow more and more popular. The UK, Germany, France, and Italy are the major contributors to this market.

Additionally, the Middle East & Africa have experienced significant growth in the hair care market. The UAE, Nigeria, South Africa, Saudi Arabia, and other nations are major market contributors. Similarly, Brazil, Mexico, and Argentina lead the way for the premium hair care market in Latin America.

Competitive Analysis

The premium hair care industry's competitive environment is very dynamic and diversified, with various brands contending for customer attention and market share. With their large product portfolios, tremendous brand awareness, and extensive distribution networks, established firms like L'Oreal, Procter & Gamble, Unilever, Redken, Kérastase, Aveda, Moroccanoil, Living Proof, Bumble and Bumble, Oribe, R+Co, IGK Hair, Amika, and Henkel dominate the market. These corporations use their worldwide presence and financial resources to spend in R&D, marketing initiatives, and product innovation.

To achieve a competitive edge in the premium hair care industry, firms have differentiated themselves via product innovation, customized solutions, sustainability efforts, and successful marketing techniques. Nou, a brand of multiracial hair products, was introduced by Procter & Gamble in August 2021. Walmart, one of the world’s largest multinational retailers, currently offers this brand for sale, and it will likely soon be available in a large number of retailers. Hair oils, shampoo, and conditioner are among the product options. Similarly, The Johnson & Johnson Company also released the VIVVI & BLOOM line of skin and hair care products in July 2022. It was created specifically with infants and young children in mind.

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The global premium hair care market is segmented as follows:

By Hair Type (Revenue: USD Billion, 2018 – 2030)
●    Dry Hair
●    Damaged Hair
●    Curly Hair
●    Color-Treated Hair

By Product Type (Revenue: USD Billion, 2018 – 2030)
●    Shampoo
●    Conditioner
●    Serum
●    Treatment
●    Styling Products

By Distribution Channel (Revenue: USD Billion, 2018 – 2030)
●    Retail Storefront
●    eCommerce Platform
●    Salons & Spas
●    Specialty Shops
●    Others

By Region (Revenue: USD Billion, 2018 – 2030)

● North America

o U.S.
o Canada
o Mexico

● Europe

o U.K.
o France
o Germany
o Italy
o Spain
o Rest of Europe
 
● Asia Pacific

o China
o Japan
o India
o South Korea
o South East Asia
o Rest of Asia Pacific

● Latin America

o Brazil
o Argentina
o Rest of Latin America

● Middle East & Africa

o GCC Countries
o South Africa
o Rest of Middle East & Africa