Global luxury hair care market was worth USD 19.95 billion in 2019. It is projected to grow at a compound annual rate (CAGR of 5.9%) between 2020 and 2027. The demand for premium hair care products is driven by the growing e-commerce market. Drop shipping and affiliate marketing will gain popularity in the future. With luxury haircare brands beginning to focus on targeting the 'genderless generation,' unisex/gender-neutral products are likely to witness a surge in demand in the foreseeable future. To reach a diverse audience, key brands will focus on neutral packaging. Market growth will be slowed by the novel COVID-19, especially in the remaining 2020. The COVID-19 crisis caused massive disruptions in supply chains, which negatively affected product distribution through all channels, but mainly offline.
The market for luxury hair products is expected to recover from its poor performance in 2020. Consumers are expected to return to work after the COVID-19 crisis and socialize, making the appearance and health hair care a pressing issue. This will create a healthy market for the product globally.
Brand stretching is crucial to portfolio expansion for luxury haircare brands with a strong global presence. A marketing strategy that uses the same brand name (with an established image) to market products from a different product line/category is known as brand stretching.
The shampoos segment accounted for 31.4% of global revenue in 2019, and led luxury hair care markets. The market continues to be driven by consumer demand for premium shampoos that are made with natural or organic ingredients. Market participants continue to push green product production. Recognizing the growing demand for luxurious shampoos, market players have developed specific products for customers.
Over the forecast period, the hair coloring products market is expected to experience the greatest growth. Individuals are more inclined to use at-home hair treatment options due to strict COVID-19 regulations in many countries. These developments will encourage hair salons to send luxury custom hair color kits (luxury), to customers' homes as soon as possible.
The market's largest segment, specialty stores, accounted for over 31.0% of global revenue in 2019. These stores are popular because they offer expert advice and allow customers to verify the products.
E-commerce is expected to grow at the fastest rate of CAGR during the forecast period. There are lucrative opportunities in the personalized luxury haircare space. California-based hair color business eSalon delivers custom hair colors kits to customers via door-to-door delivery (D2D). The company uses algorithms to analyze each customer's hair color. Due to the increasing competition in the industry, luxury haircare brands around the world are likely to follow suit.
Asia Pacific was the biggest regional market for luxury haircare in 2019, accounting for 39.3%. In 2019, the most prominent trend was the rising popularity of organic and natural luxury hair care products. A large number of Asian consumers are becoming more aware of the many benefits of using sustainably sourced luxury cosmetics.
Silver consumers continue to be skeptical about the effectiveness of anti-aging luxury products for hair. This is a way to slow down natural aging in the region. Although the market for luxury haircare products is strong, it has been impacted by rising consumer spending and increased preference for luxurious skincare products. This is most evident in Asian countries.
North America is projected to grow at a substantial CAGR during the forecast period. The key drivers of product demand in the region are rising consumer interest in premium hair care products, and increased online beauty spending. The rapid growth of direct-to consumer channels and social media has disrupted the North American market. The mainstream luxury haircare brands are still being challenged by'masstige' brands.
The market is concentrated with internationally-renowned market participants accounting for the majority of sales. To remain competitive, prominent players have taken major strategic steps to acquire. In the luxury haircare industry, there have been many developments over the past few years. Kao Corporation, a Japanese chemical and cosmetics company, announced in December 2017 that it would acquire Oribe, a luxury haircare brand based in the United States, for USD 441 million (50 trillion yen). This strategic move demonstrates Kao Corporation's determination to expand its premium/luxury product lines in overseas markets. International luxury haircare brands will likely acquire small or medium-sized businesses due to increasing competition in the luxury hair care market. The following are some of the most prominent players in luxury hair care:
L'Oreal
Estee Lauder Companies
SEVEN, LLC.
Alcora Corporation
Kao Corporation
KOSE Corporation
Up Market Research published a new report titled “Luxury Hair Care Market research report which is segmented by Distribution Channel (E-commerce, Specialty Stores), by Product (Hair Coloring Products, Shampoos), By Players/Companies L'Or©al, Estee Lauder Companies, Kao Corporation, Alcora Corporation, KOS‰ Corporation, SEVEN LLC”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.
Report Attributes | Report Details |
Report Title | Luxury Hair Care Market Research Report |
By Distribution Channel | E-commerce, Specialty Stores |
By Product | Hair Coloring Products, Shampoos |
By Companies | L'Or©al, Estee Lauder Companies, Kao Corporation, Alcora Corporation, KOS‰ Corporation, SEVEN LLC |
Regions Covered | North America, Europe, APAC, Latin America, MEA |
Base Year | 2020 |
Historical Year | 2018 to 2019 (Data from 2010 can be provided as per availability) |
Forecast Year | 2028 |
Number of Pages | 212 |
Number of Tables & Figures | 149 |
Customization Available | Yes, the report can be customized as per your need. |
The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.
The market is segmented by Distribution Channel (E-commerce, Specialty Stores), by Product (Hair Coloring Products, Shampoos).
Luxury Hair Care Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.
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Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.
We have studied the Luxury Hair Care Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.
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