Revitalising Hair Care: Exploring Future Growth Prospects

July 2014

Hair care experienced a slight slowdown in growth in 2013, but has performed well in the last five years, thanks to increasing penetration in emerging markets and the advent of more sophisticated technologies, targeting specific hair care needs through stronger efficacy claims. This has resulted in the gradual premiumisation of hair care. Going forward, hair care is expected to see greater segmentation, looking more closely into less explored areas, but will continue to be dominated by mass prod

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Hair care slows down

Growth in hair care market slowed slightly in 2013, to 5%.This slowdown was less prominent than in some of the other beauty and personal care categories, such as skin care.

Emerging markets drive innovation

Growth in hair care was predominantly driven by emerging markets, accounting for 90% of global hair care growth in 2013, mostly due to increasing penetration of shampoos.

Brazil leading contributor to hair care growth

Brazil’s contributed 25% of hair care growth in 2013. It is clearly an important market for the major manufacturers, but competition from local players is heating up.

New growth frontiers

Alongside Brazil, new growth frontiers are opening up opportunities in hair care. India offers strong prospects, as rural Indians adopt Western hair care routines, while higher disposable income in markets such as Indonesia are prompting consumers to opt for more expensive Western brands.

3 “E”s drive innovations in developed markets

Developed markets have reached high levels of maturity, and manufacturers are aiming to drive growth through innovations on the basis of “efficacy”, “experience” and “expense”, looking to other beauty categories for inspiration.

Greater segmentation to drive future growth

Tapping into less explored areas, such as thinning and mature hair, in the developed markets is expected to drive future growth in hair care. In addition, there is strong potential for dry shampoos. As emerging markets reach maturity, innovations are expected to focus on more niche areas, leading to more segmentation in market.

What this report includes

  • Top-level strategic analysis of how major consumer trends will influence global markets
  • Consumer insight
  • Impact across all relevant consumer markets
  • Unique graphics and case studies
  • Key market snapshots
  • Accompanying presentation to synthesise main findings

Why buy this report

  • Identify factors driving change now and in the future
  • Understand motivation
  • Forward-looking outlook
  • Briefings and presentation should provoke lively discussion at senior level
  • Take a step back from micro trends
  • Get up to date estimates and comment

Introduction

Scope
Key findings

Global Overview

Hair care slows down
Not all is doom and gloom for hair care
Emerging markets drive hair care growth

Brazil Growth Prospects

Conditioners and perms and relaxants drive Brazil hair care
Local players b enefit from growth in perms and relaxants
Multinationals feel the pressure from local p layers in Brazil
Should multinationals explore p erms and relaxants in Brazil?

New Growth Frontiers

New growth frontiers enter hair care
N ew growth frontiers to drive hair care sales in the future
Income levels are a key factor behind shampoo sales growth

Three Key “E”s of Innovation

Strategic importance of developed markets
The cycle of innovations
3 big E’s dominate hair care innovations
Innovation drives increasing segmentation
Segmentation drives g rowth across all categories

Cross Category Convergence

Hair care innovations inspired by other categories
Hair care p roducts e mulate s kin c are c laims
Hair oil forms key part of multi-step hair care routine
Overlapping trends between skin care and hair care ingredients
Product experience d rives c olour c osmetics i nspired innovations
Fragrances inspire s ensorial e xperience in hair c are
Scope for fragrances in dry s hampoo
Hair care witnesses premiumisation akin to oral care

Premiumisation in Hair Care

Premiumisation helps hair care value growth in Developed Markets
Targeted product i nnovations l ead p remium h air c are
Internet retailing increases presence in hair care

Conclusion

Key factors for future success
Two divergent streams of growth for multinational and local players

Appendix

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