Hair care was negatively impacted by the outbreak of COVID-19 in 2020, recording a value decline of 2% compared to growth of 6% in 2019. The bulk of this decline came from salon professional hair care, which recorded a significant value decline of 33%, impacted by the closure of salons and increased price sensitivity across the country.
Whilst most hair care products were purchased from the main distribution channel of grocery retailers, deemed as essential stores during the lockdown, access to hair salons was restricted, thereby further reducing demand for salon professional hair care. However, some consumers have still been able to access hair salon services by booking appointments, while other stylists were offering their services at home, advertising through social media platforms such as Facebook, in addition to selling their products and offering customers advice on maintaining the colour or condition of their hair during the lockdown.
Haircare remained a fairly consolidated competitive landscape in 2020, dominated by leading multinationals Procter & Gamble, Colgate-Palmolive, both of whom increased their share during the year, as well as Unilever and L'Oréal. Procter & Gamble benefits from offering a wide product portfolio that includes popular brands such as leader Pantene, offering affordability and effective positioning.
Following a decline in sales due to home seclusion and price sensitivity in 2020, value growth will return from 2021 and remain positive across the full forecast period, leading to a CAGR of 6%. Growth will be boosted by consumers spending more time outside of the home environment, working and socialising with others more often.
Due to the uplift in sales through e-commerce seen in 2020, driven by home seclusion and safety concerns, e-commerce is expected to continue improving its growth over the coming years. This will lead to players continued investment in their online and digital strategies, focusing on the promotion of their e-commerce presence as well as their social media activity.
The major players are expected to continue innovating by launching new sizes across the coming years, widening the presentation of what they offer. Many will focus on larger, 1L products that offer value and increase the presence of multipack offerings and smaller presentations that appeal to price sensitive consumers.
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Understand the latest market trends and future growth opportunities for the Hair Care industry in Guatemala with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
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This report originates from Passport, our Hair Care research and analysis database.
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