Premium Hair Care Market Size, Share & Trends Analysis Report By Product (Shampoo, Dry Shampoo), By Distribution Channel (Specialty Stores, Online), By Demography (Men, Women), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global premium hair care market size was valued at USD 18,758.5 million in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 6.6% from 2021 to 2028. The overall personal care industry has a significant dependence on the chemicals and pharmaceutical industry for raw materials used in the final products. Thus, any price variations in these sectors have repercussions across the market. The market in the U.S. held a significant share in 2020, which is mainly attributed to the rising popularity of premium hair care products, such as hair colors, conditioners, and styling products. This market’s growth is also fueled by the launch of innovative plant-based products.

The market in the Asia Pacific region is expected to register the fastest growth rate during the forecast period due to the rising awareness about personal hygiene and wellbeing along with the gradually increasing disposable income levels and standards of living. Furthermore, hair care has always been a top priority for both men and women. Over 30% of men and around 22% of women, globally, prioritize hair care over skin, face, and physique.

Also, there is an increased demand for premium hair care and other grooming products by men, owing to a robust shift in attitude toward personal wellbeing. In addition, the vast male population in emerging countries is doing away with manual work and adopting white-collar jobs, which is further anticipated to create product demand. Millennials are one of the prominent consumer segments for natural hair care products.

According to the Asia Cosmetics report, in 2017, globally, close to 56% of millennials and Gen X actively bought natural beauty and grooming products owing to growing consciousness regarding the benefits of using chemical-free products. Moreover, close to 40% of the change in the buying decisions of consumers was because of the natural ingredients listed on the packaging. Shifting consumer perception toward natural ingredient-based products in the cosmetic and personal care domain is expected to boost the demand for natural premium hair care products in the market.

Product Insights

Theshampoo product segment dominated the market in 2020 with a revenue share of more than 29%. The segment is estimated to retain the dominant position throughout the forecast period. The changing consumer perception toward organic products, coupled with the growing utilization of environmentally sustainable products, has fueled the demand for naturally derived products. The COVID-19 pandemic has adversely affected the middle-income group, which has made them picky in terms of spending. They are choosing to spend more on food and medicine over beauty and personal care products, which may hamper segment growth.

Moreover, some people choose to use an excess of everything they purchase, especially when it comes to hair care products such as shampoo, conditioner, hair styling waxes, and gels, which compels them to go for cheaper options over high-cost quality products.However, changing lifestyles of consumers along with rising environmental concerns, such as rising pollution,will support the market growth. Furthermore, consumers are becoming more conscious about their personal hygiene, and are therefore spending more to maintain a healthy lifestyle, which, in turn, is creating a huge demand for personal care products including shampoos.

Demography Insights

Based on demography, the market has been segmented into men, women, and children. The women segment accounted for the largest revenue share of over 82% in 2020 and will remain dominant throughout the forecast period. However, the men segment is estimated to register the fastest CAGR during the forecast period. Growing awareness about the importance of the overall hair care regime is expected to boost segment growth.

The new generations of consumers are seeking brands that provide cost-effective, safe, and eco-friendly solutions or products, which are devoid of harmful chemicals and possible side effects. Thus, new market players are expected to differentiate their products in terms of raw materials by using organic or natural ingredients to appeal to the generation of tech-savvy and environment-conscious customers. Similarly, attractive and premium packaging is also expected to play a crucial role in market growth.

Distribution Channel Insights

The online segmentaccounted for the largest revenue share of over 26% of the global market in 2020. Consumers prefer to purchase products through online channels due to convenience and availability of a wide range of products of various brands. Furthermore, several online channels offer products at discounted prices as compared to offline retail stores, which is likely to boost product sales through this distribution channel.

The specialty stores channel is projected to register the second-fastest CAGR of 6.8% from 2021 to 2028.Specialty stores focus on specific product categories and offer a wide range of products for that specific category, thus, making it easier for customers to purchase desired products. Most specialty stores offer a considerable range in terms of the products that they offer to provide quality service and expert assistance to customers.

Regional Insights

Asia Pacific led the market in 2020 with a revenue share of more than 38% and will expand further at the fastest CAGR from 2021 to 2028. Organic premium hair care products emerged as the most significant trend in 2020, with a sizable number of Asian consumers becoming conscious about the numerous benefits of sustainably sourced luxury cosmetics. Rising concerns regarding the efficacy of basic hair care products continue to bolster the demand for premium hair care products.

Given that the COVID-19 pandemic continues to be both unpredictable and rapid, the demand for premium hair care products across the globe, especially in severely affected countries, will be largely shaped by the duration of the crisis. Though the sales were slow-moving throughout 2020, the product demand is anticipated to gradually increase post-pandemic as conditions become favorable.

Key Companies & Market Share Insights

The market is highly competitive with the presence of global and small- and medium-scale regional manufacturers.Companies and brands in the market have been manufacturing pseudo-natural, organic, and sustainable products to comply with the increasing consumer demand for eco-friendly products. However, such pseudo products can be dangerous as they contain chemical ingredients like parabens, cocamide DEA, and PEG.

Retailers are also developing their standards for natural and organic hair care products. For instance, in December 2020, Henkel Beauty Care announced the launch of several products in 2021 for organic brand NAE and Schwarzkopf hair dyes. It is also launching a brand of natural toiletries and hair care products under the name Nature Box, an environmentally friendly brand in France.Some of the key players operating in the global premium hair care market are:

• Procter & Gamble Company

• L’Oreal S.A.

• Aveda Corp.

• Johnson & Johnson

• Unilever

• The Estee Lauder Companies

• Alcora Corp.

• Beiersdorf Group (Nivea)

• John Masters Organic

• Kao Corp.

• Ouai

• Briogeo

• Living Proof, Inc.

Premium Hair Care Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global premium hair care market report on the basis of product, demography, distribution channel, and region:

• Product Outlook (Revenue, USD Million, 2016 - 2028)

  • Shampoo

  • Dry Shampoo

  • Hair Color

  • Conditioner

  • Hair Styling Products

  • Hair Oil

  • Others

• Demography Outlook (Revenue, USD Million, 2016 - 2028)

  • Men

  • Women

  • Children

• Distribution Channel Outlook (Revenue, USD Million, 2016 - 2028)

  • Supermarkets & Hypermarkets

  • Departmental Stores

  • Specialty Stores

  • Pharmacy and Drug Stores

  • Online

  • Others

• Region Outlook (Revenue, USD Million, 2016 - 2028)

  • North America

    •  U.S.

  • Europe

    • U.K.

    • France

    • Germany

    •  Russia

  • Asia pacific

    • China

    • India

    • Singapore

    • Malaysia

    •  Indonesia

  • Central and South America

    •  Brazil

  • Middle East and Africa

    • Saudi Arabia