Hair Care Products Market is thriving on rising demand for natural ingredients

The hair care products market has witnessed tremendous growth over the past few years owing to rising demand for products containing natural ingredients. Hair care products such as shampoos, conditioners, serums, and oils help maintain hair health and keep it damage-free. These products cleanse the scalp, moisturize hair, add volume and shine. Rising pollution levels and hectic lifestyles have made self-care more crucial leading to an increased focus on hair and skin care routines. The global hair care market offers a wide variety of products catering to different hair types, textures, and concerns.

The hair care products market is estimated to be valued at USD 99.47 Bn in 2024 and is expected to reach USD 124.01 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 3.2% from 2024 to 2031.

Key players operating in the hair care products market are L’Oréal Group, Henkel AG & Co., Procter & Gamble Co., Kao Corporation, and Unilever PLC.

Key Takeaways
Key players: Key players operating in the hair care products market are L’Oréal Group, Henkel AG & Co., Procter & Gamble Co., Kao Corporation, and Unilever PLC. L’Oréal Group accounts for the largest market share owing to its wide portfolio of professional and retail hair care brands.

Growing demand: Rising disposable incomes, increasing spending on personal care, and growing working women population have increased demand for premium hair care products. Busy lifestyles have created demand for easy to use, multi-benefit Hair Care Products Market Size.

Global expansion: Key players are expanding globally by entering emerging markets of Asia Pacific and Latin America. Acquisitions and partnerships help companies to strengthen their product portfolio and distribution network in international markets.

Market key trends
One of the key trends witnessed in hair care market is the shift towards natural and organic ingredients. Consumers are increasingly preferring hair products containing natural extracts of herbs, plant proteins, and vitamins over chemical-laden formulas. Brands are focusing on clean, vegan, cruelty-free labels and sustainable packaging to attract conscious customers. Sulfate-free and paraben-free products are also gaining traction in the market.

Porter’s Analysis

Threat of new entrants: Haircare industry requires heavy investments and recognizable brands. Major players dominate shelf space in stores making entry difficult for new players.

Bargaining power of buyers: Buyers have moderate bargaining power as there are numerous brand options available at different price points in the market. Switching costs are low for buyers.

Bargaining power of suppliers: Majority of the raw materials used in haircare products like oils, herbs etc. are widely available. This reduces supplier bargaining power.

Threat of new substitutes: Substitutes include hair treatments available at salons and spas. However, at-home haircare products remain the most convenient option.

Competitive rivalry: The market is highly fragmented with global players and local/regional brands competing intensely on the basis of product innovation, brand building and marketing. Pricing wars between companies are common.

North America accounts for the largest share in the global haircare products market, both in terms of value and volume. This is attributed to high per capita expenditure on hair and beauty products in the US and Canada.

The Asia Pacific region is projected to be the fastest growing market during the forecast period. Rising incomes, growing beauty consciousness and proliferation of salons in countries like India, China and Southeast Asia are driving the demand for haircare products in the region. Increasing urbanization is also supporting the market expansion.

*Note:
1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it.