Professional hair care market is estimated to be valued at USD 36.18 Billion in 2024, growing at a CAGR of 5.6% over the forecast period (2024-2031). Furthermore, the increased focus on personal grooming and growing influence of social media for new hairstyling trends is also driving the market growth.
The global professional hair care market is primarily driven by two key factors. Firstly, the rising demand for premium and professional hair care products among consumers for styling, treatment, and coloring of hair is fueling the market growth. There is increased spending on salon services and premium hair care products by consumers to get trendy and stylish haircuts and hairstyles. Secondly, the widespread popularity and use of social media platforms has greatly influenced hair styling trends worldwide. Social media helps create and spread new hair trends instantly among the online community. This social media influence encourages product innovation and new launches by manufacturers to cater to the changing consumer preferences.
Growing demand for premium and specialty hair care products
Consumers are increasingly willing to pay more for products that offer unique benefits such as special formulations for damaged, chemically treated, or aging hair. Hair salons and specialty stores have responded by expanding their ranges of high-end shampoos, conditioners, and hair treatments containing ingredients like caffeine, soy proteins, and keratin. The growing popularity of salon services like hair coloring, styling, and treatments has also contributed to the demand for professional-grade products that can repair and maintain hair health. With growing disposable incomes in developing nations, more consumers now have the means to invest in premium hair care brands and routines.
Rapid growth of male grooming trend
The male grooming trend has taken off significantly in the past decade with more men becoming interested in styling and caring for their hair. While the female-dominated professional hair care market has traditionally focused on products for long or dyed hair, manufacturers are now innovating specifically for male customers. Formulations targeted at shorter hair lengths or thinning hair issues are emerging. Along with this, male-targeted packaging in sleek, minimalist designs instead of feminine floral prints has boosted brands' appeal to male consumers. Salon business catering mainly to male clients through services like hair coloring, haircuts, and scalp treatments has surged accordingly. As more millennial and Gen Z men embrace personal grooming and self-care, the male segment will remain a key driver of future market growth.
Rising labor and compliance costs
Increasing labor costs pose challenges to businesses in the professional hair care industry. Salons operate on thin profit margins and wage hikes can squeeze earnings if overhead is not adequately offset by higher pricing or productivity gains. In addition, stricter occupational health and safety regulations have led to higher compliance costs for salons and product manufacturers. This includes measures addressing issues like preventing repetitive strain injuries among stylists, safely handling chemicals, and proper hygiene practices. Higher operating expenses squeeze margins and could cause some companies to hike prices, risking loss of price-sensitive customers.
Threat from direct-to-consumer brands
The direct-to-consumer business model has emerged as a threat in many consumer markets by removing middlemen and associated markups. In professional hair care, startups are targeting consumers directly online or through own salons/stores. Their ability to cut overhead and offer procedures at discounted prices compared to traditional salons poses challenges. Brands marketing premium "professional-grade" products directly to retail too removes the need for customers to frequent licensed salons, hurting the latter's revenues. While DTC brands have expanded choice, their disruptive presence can shift buying behavior away from licensed service providers over time if prevailing pricing and convenience trends continue.
Opportunities from e-commerce and digital marketing
As online shopping continues growing, e-commerce presents a major opportunity for professional hair care brands and salons to reach wider customer segments cost-effectively. Companies augmenting traditional marketing with engaging digital campaigns, sponsored social media posts, and paid search can cost-effectively boost brand visibility and sales leads. Online shopping and appointment booking convenience also appeals to time-strapped consumers. Smart use of digital allows large and small businesses to "meet customers where they are" on preferred online and mobile platforms. Analytics further aid marketers in pinpointing effective campaigns and refining messaging.
Growth prospects in Asia Pacific and other emerging regions
With rising prosperity and greater societal openness to personal care, emerging markets like Asia Pacific offer huge potential for professional hair care expansion. Countries like China, India, Indonesia, Vietnam, and Philippines feature a combination of large and youthful populations increasingly embracing salon lifestyles. Local players and multinational brands augmenting growth through strategic market entry look well-placed to tap opportunities. Manufacturers able to cost-effectively tailor products to evolving needs like keratin straightening treatments for Asian hair have an edge. Proactive supplier government policies supporting industry growth through tariff reductions and skills training infrastructure further sweeten prospects. Overall the still low market penetration levels make emerging regions hotspots for future professional hair care growth globally.
*Link: https://www.coherentmarketinsights.com/market-insight/professional-hair-care-market-4852
Key Development
- In February 2024, Beyoncé to launched hair care brand
- In January 2023, Henkel acquired Shiseido Professional to expand its presence in the Asia Pacific professional hair care market
- In January 2023, Procter & Gamble (P&G) acquired Mielle Organics, a Black-founded textured hair care brand, to expand its product offerings and make hair products more accessible for people with textured hair
- In February 2022, Mamaearth's parent company, Honasa Consumer, acquired BBLUNT's hair care brand and salon business from Godrej Consumers
- In 2023, a U.S.-based professional hair brand, Redken was launched in India on Nykaa
Key Players
L'Oréal Group , Procter & Gamble, Henkel AG & Co. KGaA , Unilever, Estée Lauder Companies Inc., Kao Corporation, Revlon Inc., Coty Inc. , Shiseido Company, Limited , Amway Corporation, Fable & Mane , Aveda Corporation, Avon Products Inc, Johnson & Johnson, Natura & Co., Professional Hair Labs, and PLZ Corp
