PROFESSIONAL HAIR CARE MARKET ANALYSIS

Professional hair care includes hair treatments such as hair coloring, hair straightening, hair restoration services, and others that are usually offered at salons, spas, and parlors. These advanced hair care treatments and services involve the usage of premium quality products and technologies that come at a higher cost compared to regular consumer products. The prices of professional hair treatments and full service haircuts at premium salons can range anywhere from USD 50 to over USD 100. This makes such advanced hair care routinely accessible mainly to consumers with higher disposable incomes. The average working individual may not be able to afford to avail expensive professional hair services and treatments on a very frequent basis. This limits the repeat usage and overall adoption of professional hair care products and services among middle and lower income demographics. The COVID-19 pandemic of 2020-21 further exacerbated this issue by causing financial hardships for many. According to a survey conducted by the US Bureau of Labor Statistics in 2021, over 15% of American households reported having difficulty paying for usual household expenses including personal care services during the pandemic year. Such economic uncertainties discourage the spending on expensive hair treatments and styling in professional salons.

 Opportunities: Emergence of organic and natural hair care products

In recent years, consumers have grown more conscious about the ingredients used in personal care products and their impact on both personal health as well as the environment. There is a strong preference for products that are free from harmful chemicals, silicones, parabens, sulfates and other ingredients known to cause toxicity issues. This change in tastes and preferences is primarily being led by millennials and Generation Z consumers who want to use hair care products that are natural yet effective. They are willing to pay more premium prices for products made from high quality natural extracts and organic plant butters and oils that nourish and moisturize the scalp without causing any damage. Many professional salons and stylists have also noticed this shift in demand from their clients who want to use natural, chemical-free products at salons as well as for home use. As a result, several major hair care brands along with smaller organic brands have launched new professional as well as retail ranges based on natural and organic ingredients. For example, in 2020, L'Oréal Paris launched its new EverPure range made from 97% naturally derived ingredients including botanical extracts and natural oils. Similarly, Pai Chamomile & Rosehip Calm Hair Serum launched in 2022 contains certified organic ingredients like chamomile and rosehip seed oil to hydrate and soothe scalp. This shift towards green washing formulations with natural extracts to meet consumer demand is a major trend in the industry currently.