CAGR: 6%Current Market Size: USD 23 BillionFastest Growing Region: Europe
Largest Market: APACProjection Time: 2022-2029Base Year: 2021
The global hair color market is expected to grow from USD 23 billion in 2021 to USD 36 billion by 2029, at a CAGR of 6% during the Projection period 2022-2029. The growth of this market is mainly driven by a wide product portfolio, product innovation changing lifestyles, rising urbanization, the rising penetration rate of salon and spa services, and the growing youth population in emerging economies.
The broad field of hair care products includes items for coloring your hair, usually known as hair colorants or hair dyes. More than 25% of the worldwide hair care market's revenue comes from hair color products. Permanent hair color, semi-permanent hair color, temporary hair color, and hair highlights and bleach are the four different varieties of hair color products depending on the application, despite the fact that hair color solutions are available in a variety of compositions, components, and hues. One area of the global hair color market is novelty hair color. Amazing distinctive hues like purple, green, blue, orange, pink, red, and yellow are regarded as novelty colors since they are so uncommon to use in the process of coloring hair. One of the key factors driving the market expansion during the Projection period is the significant increase in the popularity of hair coloring combined with the rise in the aging population worldwide. Along with these factors, the market is also growing as a result of significant product innovation in product composition and formats. However, it is also anticipated that during the Projection period, the adverse effects of frequent hair dye use may hinder market expansion. Additionally, it is anticipated that during the Projection period, increasing brand recognition and the influence of hair coloring products through social platforms would further drive market expansion. Consumer preference is further supported by growing consumer awareness of the substances in hair color and their effects on hair, which further fuels market expansion. The market is also experiencing considerable development as a result of the aging population, as older individuals typically dye their hair. Additionally, it is anticipated that in the near future, the market will benefit significantly from the growing trend toward organic hair color products around the globe.
Sample Request: - Global Hair Color Market
Market Dynamics:
Drivers:
The market for hair color products is being driven, among other things, by factors such as the rise in urbanization and changing lifestyles, the trend of hair highlighting, and an increase in consumer concern over the health of their hair. Additionally, the market for hair color products will benefit from increased technological breakthroughs, modernized production methods, and increased demand from emerging nations.
Restraints:
The harmful chemicals used in hair colorants provide possible health hazards, which restrain market expansion. Companies are developing better remedies to address the problem, such as employing natural chemicals and avoiding ammonia. The market for organic hair color is expected to rise due to the rising incidence of skin allergies among customers. The organic hair color market is anticipated to have a generally positive outlook during the Projection period.
Opportunities:
Increasing brand recognition and the influence of hair coloring products on social media are other factors predicted to fuel market expansion over the Projection period. Consumer preference is further supported by growing consumer awareness of the substances in hair color and their effects on hair, which further fuels market expansion. The market is also experiencing considerable development as a result of the aging population, as older individuals typically dye their hair. Additionally, it is anticipated that in the near future, the market will benefit significantly from the growing trend toward organic hair color products around the globe.
Challenges:
The primary reason, among others, that would restrain market growth and pose additional difficulties for the expansion of the hair color products market in the Projection period is rigorous government regulation related to the use of chemicals in the production of hair color.
Segmentation Analysis:
The global hair color market has been segmented based on product, end-user, distribution channel, usage, and region.
By Product
The product segment is Permanent, Temporary, and Others. The permanent segment led the largest share of the hair color market with a market share of around 9.2% in 2021. The main element that has contributed to the greatest market share is the significant trend toward permanent hair color because there are so many natural colors available. Additionally, compared to alternative hair colors, permanent hair color offers a more natural appearance.
By End-user
The end user segment includes Men and Women. The women segment led the hair colour market with a market share of around 13.8% in 2021. One of the main aspects that have contributed to the greatest market share is the significant trend toward hair coloring in women. The fact that women spend more on hair care and cosmetics than men does further contribute to the greatest market share. Around 75% of women in the US use hair color on a yearly basis, according to a survey. As a result, a sizeable fraction of women worldwide utilize various hair coloring products, which further contributes to the segment's largest market share.
By Distribution Channel
The distribution channel segment includes Offline and Online. The offline segment led the hair color market with a market share of around 12% in 2021. The high level of customer loyalty to offline retail establishments for cosmetics and hair care goods was a significant reason for the segment's substantial share. Also contributing to the growth of sales in the offline channel sector was the simple accessibility of cosmetics and hair color items in brick-and-mortar retail establishments such department stores, specialty multi-retailers, and salons and spas.
Global Hair Color Market- Sales Analysis.
The sale of hair color expanded at a CAGR of 3.5% from 2015 to 2021.
The market for hair color is primarily driven by a diverse product offering and product innovation. The variation in product formulation is a significant driver of hair color sales. Other characteristics of product line innovation include ammonia-free formulation, innovative packaging, and the use of components like conditioning agents or oils to counteract the harsh effects of chemicals. Additionally, producers are focusing on the launch of hair chalks that will let customers change their hair color more regularly as well as hair color solutions with stain-free applications. The rise of salon and spa services is also significantly influenced by shifting lifestyles, increasing urbanization, rising salon and spa service penetration rates, and an increasing number of young people in emerging nations.
The rising desire for hair colors made with organic components is one of the most cutting-edge trends that will take off in the novelty hair color industry in the upcoming years. Due to their ammonia-free nature and lower toxicity compared to synthetic colours, consumers are now favoring the use of natural and herbal hair colouring products. This need will encourage the producers to add colours derived from plants to their product line. The market for novelty hair colour is expected to develop, although it may be constrained by countries' strict rules over the chemicals used in its formulation. However, the increasing attention being paid to hair health and the availability of a variety of hair treatments are reportedly having a favourable effect.
Thus, owing to the aforementioned factors, the global hair color market is expected to grow at a CAGR of 6% during the Projection period from 2022 to 2029.
By Regional Analysis:
The regions analyzed for the hair color market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The Asia Pacific region dominated the hair color market and held a 40% share of the market revenue in 2021.
Asia Pacific dominates the market. The rising consumer expenditure on hair care products and the rising popularity of high-end hair color products among celebrities in the area are the main drivers of market expansion. Additionally, the market would develop throughout the projected period due to the notable rise in per capita income in rising nations like China, India, and others. Additionally, during the Projection period, the personal care industry in emerging nations is expected to rise significantly, creating considerable chances for the market to expand.
Europe is anticipated to experience significant growth during the Projection period. Germany, the United Kingdom, and France are examples of highly developed nations that are positively impacting market revenue. Strong sales of hair color products from various brands, including Coty Inc., L'Oréal S.A., Estée Lauder Companies Inc., and Revlon, Inc., as well as new product introductions from other companies, including Procter & Gamble, Combe Inc., and Henkel AG & Co. KGaA, are what primarily drive the market. Another element influencing the market in the region is the existence of well-established offline retail chains for hair cosmetics in Europe.
Global Hair Color Market- Country Analysis:
Germany's hair color market size was valued at USD O.39 billion in 2021 and is expected to reach USD 0.57 billion by 2029, at a CAGR of 4.9% from 2022 to 2029.
The offline channel was believed to account for the majority of sales of hair colors, and specialty shops were responsible for the largest income. Additionally, a sizeable portion of the market's sales was also generated through sales at supermarkets, hypermarkets, and convenience stores.
China’s hair color market size was valued at USD 0.52 billion in 2021 and is expected to reach USD 0/81 billion by 2029, at a CAGR of 5.7% from 2022 to 2029. Rapidly altering lifestyles brought on by urbanization in emerging markets fuel demand for fashionable products like hair colorants. The region's millennial populations choose to color their hair to keep up with current fashion trends and are heavily affected by celebrities.
India's hair color market size was valued at USD 0.48 billion in 2021 and is expected to reach USD 0.72 billion by 2029, at a CAGR of 5.3% from 2022 to 2029. The market is primarily driven by an increase in the occurrence of grey hair among young working populations as a result of stress and poor diet. Permanent hair colorants provide long-lasting hair colour, which accounts for their great customer demand.
Key Industry Players Analysis:
To increase their market position in the global hair color business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2021-2029 |
Base year |
2021 |
CAGR (%) |
6% |
Market Size |
23 billion in 2021 |
Projection period |
2022-2029 |
Projection unit |
Value (USD) |
Segments covered |
By Product, By End-User, By Distribution Channel, and By Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Coty Inc., L'Oréal S.A., Estée Lauder Companies Inc., Revlon, Inc., Avon Products Inc., Unilever PLC, Shiseido Company, Limited, Godrej, Procter & Gamble, Combe Inc., Henkel AG & Co. KgaA, Kao Corp, Hoyu Co., Ltd., and Cadiveu. |
By Product |
|
By End-User |
|
By Distribution Channel |
|
Regional scope |
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Scope of the Report
Global Hair Color Market By Product:
Global Hair Color Market By End-user:
Global Hair Color Market By Distribution Channel:
Global Hair Color Market By Region:
Global hair color market is expected to reach USD 36 billion by 2029, at a CAGR of 6% from 2022 to 2029.
One of the key factors driving the market expansion during the Projection period is the significant increase in the popularity of hair colouring combined with the rise in the ageing population worldwide. Along with these factors, the market is also growing as a result of significant product innovation in product composition and formats.
Stringent Regulations related to the consumption and sale of hair colour products challenges the market’s growth as they have chemicals used in them while manufacturing.
The hair color market is projected to have a CAGR of 6%.
Leading market players active in the global hair color market are Coty Inc., L'Oréal S.A., Estée Lauder Companies Inc., Revlon, Inc., Avon Products Inc., Unilever PLC, Shiseido Company, Limited, Godrej, Procter & Gamble, Combe Inc., Henkel AG & Co. KGaA, Kao Corp, Hoyu Co., Ltd., Cadiveu among others.
Political Factors- Because of the products' frequent skin-to-skin contact, product safety is one of the top issues in the global hair colour industry. The "Personal Care Product Safety Act" is a stringent US statute that enables the FDA to explore even stricter rules and policies regulating the safety of products. Companies must register as manufacturers and list the components in their products. Additionally, a lot of businesses import goods or materials to sell abroad. According to national policy, they are all required to adhere to the laws. For instance, the European Union and Canada have policies requiring the mention of components, and over 500 corporations have been barred for disobeying the regulations (Buscher, 2021).
Economic Factors- Contrary to other businesses, the hair colour industry is very resilient to the economic downturn. The 2008 Great Recession was effectively weathered by the industry. The price of an item is now carefully considered by consumers since they have grown price sensitive. In 2015, the cosmetics market in the US earned more than $56 billion in revenue. Spending on skincare and haircare is increasing not just among women but increasingly among men. Additionally, the cosmetics sector accounts for more than 14% of the market. People are spending more money on the hair colour industry today. (Frue, 2018).
Social Factors- Many businesses, including Loreal, Garnier, and others, have meticulously carried out their CSR initiatives over the years. Millions of lotions and hand sanitizers have recently been supplied by Loreal for local and front-line personnel. When it comes to social media sites, people are more beauty conscious than ever before. The latest current trend in hair care and hair colour. When a brand is well-known, such as Loreal, Garnier, etc., businesses need to be cautious about what and how they market. Bodyshop prides itself on not subjecting its goods to animal testing. Due to rising moral sensitivity, Loreal was forced to remove any references to "whitening" from their products.
Technological Factors- Popular cosmetic companies like Revlon, Loreal, and others realised the value of a strong brand image in order to compete globally. Companies that make cosmetics are increasingly spending more money on both virtual and physical technology to provide consumers attractive items. Modern technology is king and aids businesses in broadening their appeal to the public. To increase demand for their products, hair colour firms use a variety of online tutorials, material, and influencers. Many women throughout the world watch and share the influencers' product-related videos on social media.
Environmental Factors- In terms of business innovation, hair colour companies are helping them achieve their objectives of developing sustainable and ecologically friendly businesses. For the purpose of lowering greenhouse gas emissions at manufacturing facilities such as factories, distribution centres, etc., they have devised, designed, and also implemented a number of solutions. The quantifiable goal of a 60% reduction in CO2 emissions has been developed by Loreal. Water conservation is the company's upcoming initiative. The company calculated their use and made plans to reduce it by 11%.
Legal Factors- The hair colour industry has a tough area when it comes to ingredients. The businesses need to be FDA-registered. No business can function without FDA permission. The Federal Food, Drug, and Cosmetic Act and the Fair Packaging and Labeling Act are imposing regulations that every business in the sector must adhere to. The FD&C also keeps track of the ingredients' usage to make sure there aren't any inaccuracies. For failing to provide sufficient proof in accordance with the rules and norms, many businesses risk being blacklisted.
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