The global luxury hair care market size was valued at USD 19.95 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 5.9% from 2020 to 2027. The growing e-commerce retail market is among the key factors fueling the demand for luxury hair care products. In the coming years, online selling techniques such as drop shipping and affiliate marketing are likely to gain momentum. With luxury haircare brands beginning to focus on targeting the ‘genderless generation,’ unisex/gender-neutral products are likely to witness a surge in demand in the foreseeable future. Key brands are expected to focus on neutral packaging to target a varied set of audience. The novel COVID-19 is forecast to impede the market growth soon, most notably throughout the remainder of 2020. With massive supply chain disruptions, the COVID-19 crisis has negatively impacted product distribution across all distribution channels, mainly offline distribution platforms.
Following its underperformance in 2020, the market for luxury hair care is anticipated to normalize through 2021. With consumers expected to return to work or socialize post-COVID-19 crisis, the appearance and health of hair will again become a pressing issue, thereby creating a healthy demand for the product worldwide.
From a portfolio expansion standpoint, brand stretching is tipped to be crucial for luxury haircare brands that enjoy a deep-seated presence worldwide. Brand stretching (also called brand extension) refers to a marketing strategy in which a company/firm uses the same brand name (with a well-developed image) to market products of a different product category/line.
The shampoos segment led the luxury hair care market and accounted for 31.4% share of the global revenue in 2019. Evolving consumer demand for luxury shampoos made using natural or organic ingredients continues to encourage market participants to focus on the production of green products. Noticing the rising demand for luxury shampoos, prominent market participants have been developing specific products for customers.
The hair coloring products segment is forecast to witness the highest growth over the forecast period. The adoption of strict COVID-19 measures across countries has been encouraging individuals to opt for at-home hair treatments. Such developments are likely to encourage hair saloons to deliver custom hair color kits (luxury) to their customers’ homes soon.
The specialty stores segment led the market and accounted for more than 31.0% share of the global revenue in 2019. Consumers typically make purchases at these stores as they allow the physical verification of products while offering expert suggestions to consumers regarding the quality of products.
The e-commerce segment is likely to expand at the fastest CAGR over the forecast period. There exist lucrative opportunities in personalized luxury hair care space. eSalon, a California-based hair color company, provides its customers with door-to-door (D2D) delivery of custom hair color kits. This company employs algorithms to gain insights into each customer’s hair tones. Luxury haircare brands worldwide are likely to follow the suit, given the rising competition within the industry.
Asia Pacific emerged as the largest regional market for luxury hair care in 2019 and accounted for 39.3% share. The rising popularity of natural and organic luxury hair care products emerged as the most significant trend in 2019, with a sizable number of Asian consumers becoming conscious regarding the benefits of sustainably sourced luxury cosmetics.
Skepticism regarding the efficacy of anti-aging luxury hair care products continues to bolster silver consumers’ demand for luxury hair care products to slow down the natural aging process in the region. While the demand for luxury hair care products has remained strong historically, rising consumer spending and increasing preference for luxury skincare products continue to cannibalize luxury haircare sales, most notably in Asian countries.
North America is expected to expand at a significant CAGR over the forecast period. Rising consumer interest in different and premium hair care products and increasing online beauty spending are some of the key factors fueling the product demand within the region. The market in North America has been disrupted by the mushrooming growth of direct-to-consumer channels and the use of social media. Consequently, mainstream luxury haircare brands continue to face intense competition from ‘masstige’ (prestige for the masses) brands.
The market is concentrated with internationally-renowned market participants accounting for the majority of sales. The acquisition is among the major strategic initiatives adopted by prominent players to stay competitive. Recent years have witnessed various developments in the luxury haircare space. For instance, in December 2017, Kao Corporation, a Japan-based chemical, and cosmetics company announced its strategy to acquire Oribe, a U.S.-based luxury haircare brand, for an estimated USD 441 million (50 billion yen). This strategic initiative highlighted Kao Corporation’s intent to strengthen its luxury/premium product lines for overseas markets. Given the rising competition in the luxury hair case space, international luxury haircare brands are expected to acquire small-or medium-sized companies over the forecast period. Some of the prominent players in the luxury hair care market include:
L'Oréal
Estee Lauder Companies
SEVEN, LLC.
Alcora Corporation
Kao Corporation
KOSÉ Corporation
Report Attribute |
Details |
Market size value in 2020 |
USD 15.3 billion |
Revenue forecast in 2027 |
USD 31.5 billion |
Growth Rate |
CAGR of 5.9% from 2020 to 2027 |
Base year for estimation |
2019 |
Historical data |
2016 - 2018 |
Forecast period |
2020 - 2027 |
Quantitative units |
Revenue in USD million and CAGR from 2020 to 2027 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Product, distribution channel, region |
Regional scope |
North America; Europe; Asia Pacific; Central & South America; MEA |
Country scope |
The U.S.; The U.K.; France; China; India; Brazil; UAE |
Key companies profiled |
L'Oréal; Estee Lauder Companies; SEVEN, LLC.; Alcora Corporation.; Kao Corporation; KOSÉ Corporation |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For this study, Grand View Research has segmented the global luxury hair care market report based on the product, distribution channel, and region:
Product Outlook (Revenue, USD Million, 2016 - 2027)
Shampoos
Conditioners
Hair Coloring Products
Hair Styling Products
Hair Oil
Others
Distribution Channel Outlook (Revenue, USD Million, 2016 - 2027)
Supermarkets & Hypermarkets
Departmental Stores
Specialty Stores
E-commerce
Others
Regional Outlook (Revenue, USD Million, 2016 - 2027)
North America
The U.S.
Europe
The U.K.
France
Asia Pacific
China
India
Central & South America
Brazil
Middle East & Africa
UAE
b. The global luxury hair care market size was estimated at USD 19.95 billion in 2019 and is expected to reach USD 15.34 billion in 2020.
b. The global luxury hair care market is expected to grow at a compound annual growth rate of 5.9% from 2020 to 2027 to reach USD 31.50 billion by 2027.
b. Asia Pacific dominated the luxury hair care market with a share of 39.3% in 2019. This is attributable to the rising popularity of prestige cosmetics among millennials coupled with the increasing growth in e-commerce retail sales.
b. Some key players operating in the luxury hair care market include L'Oréal, Estee Lauder Companies, SEVEN, LLC., Alcora Corporation., Kao Corporation, and KOSÉ Corporation.
b. Key factors that are driving the market growth include rising consumer interest in natural hair care ingredients, and increasing consumer spending on luxury goods, most notably in Asian countries.
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