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Global Hair Care Products Industry

The world hair care products industry witnessed 3% expansion in 2010, generating revenue of almost $49 billion and volume sales of more than 15 billion units, according to MarketLine. The market is expected to reach almost $58 billion in 2015, representing 18% expansion over a five-year period. The market should hit a volume of almost 18 billion units in 2015 for a 19% growth rate.

Shampoo represents the leading segment in the global hair care products industry, representing close to 40% of the overall market in terms of value. Regionally, the EU holds more than a 35% hair care market share, while company-wise leader Procter & Gamble holds the number-one position globally with more than 24% of the overall market in terms of value.

Regional Market Share

The EU hair care products market generated almost $17 billion in revenue in 2010, reports MarketLine. The market’s yearly growth rate is expected to fall slightly from its 2.5% rate between 2006 and 2010 over the following five-year period ending 2015 to reach almost $19 billion. Shampoo sales represented the most profitable market segment in 2010, worth almost $6.5 billion and accounting for 38% of the overall market.

Hair care represented an industry worth more than $7 billion in the US in 2010. MarketLine estimates the market’s growth will accelerate slightly from -0.3% to -0.2% between 2010 and 2015 to maintain its current worth. Shampoo sales represented the market’s leading segment in 2010, generating over $2 billion and accounting for almost 30% of the overall market.

In India, the hair care products industry generated more than $2 billion in 2010, having recorded over 15% yearly growth for the preceding four-year period, reports MarketLine. Hair conditioner sales proved to be the most profitable segment, generating more than $1 billion and representing almost 58% of overall market value. Market growth is expected to slow to a yearly rate of just over 10% between 2010 and 2015; this is forecast to bring the market to $3.5 billion by the close of 2015.

India’s private labels hair care products market segment represents less than 5% of the overall market, according to Canadean. Private labels, which do well in more mature markets, suffer from India’s fragmented retail sector. The country’s young population and increasing urbanization it is expected to influence the industry in the short to long term. India’s hair color market is benefitting from rising levels of disposable income and favorable fashion trends. The rising number of male consumers purchasing personal grooming products is also having a positive impact on the market. India’s hair color market does face certain obstacles to growth such as consumer concern over skin reactions to chemicals present in hair colorants. NetScribes predicts herbal products will constitute a major market trend in coming years. Other trends include companies seeking brand recognition for using natural products, 3D color service and tie-up with salons.

China’s hair care market was worth almost $4 billion in 2010, having exceeded 6% yearly growth between 2006 and 2010, reports MarketLine. Shampoo sales represented the most profitable hair care market segment with revenue of close to $3 billion in 2010, exceeding 75% of overall market value. Styling agents were the second-most lucrative segment, followed by hair colorants. According to Canadean, hair colorants represent the highest rate of private label penetration, with hair styling agents recording the lowest rate. Market growth is expected to slow to a yearly rate of just more than 5% between 2010 and 2015, bringing the market to just under $5 billion.

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Parent industry: Cosmetics
Related industries: Body Care, Oral Hygiene, Make-Up, Fragrance

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