Luxury Hair Care Market Size, Share & Trends Report

Luxury Hair Care Market Size, Share & Trends Analysis Report By Product (Shampoos, Hair Coloring Products), By Distribution Channel (Specialty Stores, E-commerce), By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Aug, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68038-942-5
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 80

Report Overview

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.

The U.S. luxury hair care market size

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.

Product Insights

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.

Distribution Channel Insights

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.

Global luxury hair care market share

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.

Regional Insights

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.

Key Companies & Market Share Insights

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

Luxury Hair Care Market Report Scope

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

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Segments Covered in the Report

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

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