Over the forecast period, hair care is expected to record sales growth at a higher rate than during the review period. While recent years have seen the category struggle due to maturity and price erosion from price promotions, growth rates are set to benefit from solid economic growth, rising incomes and the greater focus on personal grooming.
The trend towards more natural products and healthier lifestyles is becoming more important with each passing year. Consumers are increasingly acting on their desires to lead natural, healthy lives.
Volume and current value growth rates remain roughly in line in standard shampoos and this is due to the effects of price discounting. For most of the review period, volume growth have been in line with current value growth rates in the category and this has been due mainly to the effects of price promotions on unit prices.
Procter & Gamble Nederland further consolidated its fifth position in hair care in 2018 by supporting its second strongest brand Head & Shoulders. During the year, the brand was subject to strong promotion in drugstores/parapharmacies chains such as Etos and Kruidvat, mainly price discounts.
Demand for colourants is already relatively mature in the Netherlands. Indeed, the category entered negative volume growth territory in 2018 as limited innovation and promotion continued to ensure that relatively few people are interested in these products.
Most hair care categories have already reached a high degree of maturity. Innovation therefore remains difficult, while sales remain under pressure from low unit prices and promotional activity.
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This industry report originates from Passport, our Beauty and Personal Care market research database.