05.26.23
The natural and organic hair products market will grow at a CAGR rate of 4.12% between 2022 and 2027, per a report from Technavio.
The hair products market size is estimated to grow by $19.4 million during 2022-2027. However, the growth momentum will progress at a CAGR of 4.12% during the forecast period. The market is segmented by distribution channel (offline and online), product (hair care products and hair styling products), and geography (Europe, APAC, North America, South America, and Middle East and Africa). Increasing hair-related issues are notably driving the hair care products market growth.
The growing competition in the market is compelling vendors to adopt various growth strategies such as promotional activities and spending on advertisements to improve the visibility of their services. The Technavio report analyzes the market's competitive landscape and offers information on several market vendors including the following companies: Amway Corp.; Colgate Palmolive Co.; Coty Inc.; Flora and Curl Ltd.; Godrej Consumer Products Ltd.; Henkel AG and Co.; KGaA; John Paul Mitchell Systems; Johnson and Johnson; Kao Corp.; LOreal SA; Natulique Ltd..; Natura and Co Holding SA; Ouai Hair Care; Pai Shau Inc.; Revlon Inc.; Shiseido Co. Ltd.; St. Tropica Inc.; The Estee Lauder Companies Inc.; The Procter and Gamble Co.; and Unilever PLC.
Hair-Related Issues, Fashion Trends Drive Market
Increasing hair-related issues are pushing consumers to purchase hair care products. The concern for the psychological consequences due to hair-related issues such as extensive hair loss and thinning is driving the adoption of hair products among consumers.
Also, consumers experiencing male pattern baldness or androgenetic alopecia, are also extensively procuring hair products to prevent hair issues. Further, increased fashion awareness is encouraging consumers to use stylistic products to fit in the society. According to Technavio, there is a growing awareness of the benefits of premium and organic personal care products over standard products that use harmful chemicals. Such factors are expected to drive the growth of hair products during the forecast period.
Demand for Organic Hair Care Grows
Growing demand for natural and organic hair products is a primary trend, positively influencing the growth of the market. Due to the increasing awareness of hair and skin-related problems caused by artificial hair products for hair care and hair styling products, the demand for natural and organic hair products is extensive among the consumers.
Organic hair products include ingredients such as plant extracts, natural oils, aloe vera, sea salt, charcoal, coconut oil, argan oil, and moringa oil, among others. Such ingredients are proven to be beneficial for hair care for a long duration. Vendors offering organic hair products strictly adhere to high purity standards of the ingredients used in the products and these standards are set by various governing bodies of different countries.
Key Challenges
The availability of counterfeit products is a major challenge to the market growth. Low price points of counterfeit products branded products are driving its sales. Growing adoption of counterfeit products affects the volume sales and pricing strategies of genuine vendors. To overcome the threat of counterfeit products, genuine vendors are compelled to price their hair products at low price points. Due to this, their profit margins and the value sales proportion decline drastically. Therefore, the presence of counterfeit products across the global market is expected to limit the market growth, during the forecast period.
