Double-digit growth forecasted

The highly saturated and competitive hair care category has experienced only modest increases in recent years, but industry observers predict the category will grow double-digits through 2017, thanks in large part to niche items and products that target emerging segments.

(For the full category review, including sales data, click here.)

After experiencing a sales lift of just 7% between 2007 and 2012, likely due to a weakened economy, the hair care category is projected to grow by about 13% through 2017, reaching an estimated $7.9 billion, according Mintel Group’s April 2013 research report on shampoo, conditioners and styling products in the United States.

Driving growth are such niche items as shampoo alternatives and hair oils, as well as products that target such emerging segments as anti-aging and men’s grooming.

“Consumers are motivated by value in the hair care category, but they are willing to pay for improved performance, as well as compelling new product benefits,” Mintel stated. “Driving growth and encouraging consumers to ‘trade up’ in the category will likely revolve around niche items and emerging segments.”

Shampoo — the largest segment in the category — will likely see future growth stem from price increases and value-added benefits, like anti-aging. There’s also been a rise in hair care solutions that target women experiencing hair loss.

Shampoo alternatives also are generating great interest, as some women look for time-saving solutions and less damaging alternatives to shampooing, such as dry shampoo and cleansing conditioners.

In fact, earlier this year Mintel reported that in 2008 dry shampoo introductions accounted for just 1% of global shampoo launch-activity. But by 2012 the segment accounted for 3% of global shampoo launch-activity, and 2013 was on track to surpass 2012 levels.

Conditioner is the strongest-performing segment within the category, according to Mintel, but opportunities exist to further grow the segment by successfully targeting men. Today, women are the biggest users of conditioner.

The styling products segment, on the other hand, has experienced weaker sales likely due to a trend toward more natural hairstyles, as well as limited discretionary spending among shoppers.

Login or Register to post a comment.