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Luxury Hair Care Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global luxury hair care products market was valued at USD 14.5 billion in 2022 and is projected to witness a CAGR of 5.2% from 2023 to 2030. Luxury hair care products are increasingly becoming popular among people due to their superior quality and natural ingredients. Additionally, the growing millennials and Gen Z population, who are more conscious about their appearance and grooming, is driving the demand for luxury hair care products.
Fashion trends are a major driver of the luxury hair care products market. The rise in the popularity of luxury hair care products, such as hair oils and conditioners, is attributed to the increasing influence of celebrities, influencers, and social media. Consumers are increasingly buying luxury hair care products to acquire the desired hair look. Furthermore, the rising trend of premiumization within the hair care segment, with an increased impact of clean label ingredients, is contributing to the high prices of luxury hair care products.
Moreover, the growing focus of market participants on product innovation is expected to boost the growth of the market. For instance, in January 2021, L’Oréal launched a new range of luxury hair care products called L’Oréal Professionnel Source Essentielle. The range includes five products for different hair types, including a shampoo, conditioner, and mask. The product range is free from sulfates and parabens, making them safer for use.
In addition, the increasing adoption of natural and organic ingredients in luxury hair care products is expected to drive the demand for these products. Manufacturers are focusing on product launches that are free from chemicals and are made with natural ingredients such as coconut oil, almond oil, and shea butter. For instance, in February 2021, Moroccanoil launched a new range of luxury hair care products called Moroccanoil Curl Collection. The product range is formulated with natural ingredients such as argan oil, and is free from sulfates, parabens, and phthalates.
Furthermore, the growing demand for travel-sized luxury hair care products is expected to drive the market growth. Manufacturers of luxury hair care products are offering travel-sized products in order to meet the needs of travelers. Travel-sized products are convenient to carry and are also cost-effective. For instance, in May 2021, Paul Mitchell launched a travel-sized range of luxury hair care products called Paul Mitchell Travel Smarts. The product range includes shampoos, conditioners, styling products, and hair accessories.
Product Insights
The shampoo segment led the market and accounted for a share of around 35.9% in 2022. Luxury hair care products are gaining popularity among consumers due to their natural ingredients, which help reduce hair damage, improve hair quality, and enhance hair styling and appearance. Furthermore, the growing demand for natural and organic products and the increasing popularity of luxury and premium hair care products are facilitating the growth of the luxury hair care market.
The hair styling segment is expected to expand at the fastest CAGR of 8.3% over the forecast period. The growing demand for hair styling products, such as hair gels, waxes, and sprays, is driving the growth of the luxury hair care market. The growing trend of men grooming, the increasing awareness about the effects of chemical-based styling products, and the increasing number of professional hair stylists are some of the key factors driving the demand for hair styling products. Additionally, the growing demand for travel-size hair styling products is also contributing to the growth of the market.
Distribution Channel Insights
The departmental stores segment captured the major share of over 37.5% in 2022. According to a report by Mintel, departmental stores are the most popular distribution channel for luxury hair care products due to their wide range of products, merchandising and customer service. The segment is expected to remain highly attractive in the coming years due to the presence of global players such as Sephora, Macys, and Bloomingdales, which offer luxury hair care products from various brands.
The online segment is anticipated to expand at the highest CAGR of 13.3% over the forecast period. The growth of the segment is attributed to the rising penetration of the internet and online retailing across the globe. Online luxury hair care products are gaining traction due to the convenience and wide range of product availability offered. Additionally, the presence of several prominent players such as Amazon, and Nykaa, are encouraging consumers to purchase luxury hair care products through the online channel.
Type Insights
The luxury segment accounted for the largest revenue share of 63.3% in the year 2022. Increasing demand from the young population in developing countries, such as India, is a major factor driving the demand for luxury hair care products. Furthermore, the growing awareness about the benefits of premium hair care products is propelling the demand for luxury products in the market. Also, increasing competition among the leading companies has further encouraged the manufacturers to introduce innovative products at competitive prices, which has further spurred the demand for luxury hair care products.
The mass segment is anticipated to expand at the highest CAGR of 7.4% over the forecast period. The rising disposable income of people in the middle-income group in emerging countries is driving the demand for mass hair care products. Furthermore, mass hair care products are more affordable than luxury products and are easily available in retail stores and online stores. This has increased the preference for mass products among consumers. In addition, manufacturers are launching new products to attract young customers, which is further fueling the demand for mass hair care products.
Regional Insights
Asia Pacific is expected to hold the largest revenue share of the market over the forecast period. Increasing demand for luxury and premium products, along with rising disposable incomes, are the key factors driving the market growth in the region. For instance, in January 2021, luxury haircare brand Shu Uemura launched its new luxury haircare line, Shu Uemura Color Lustre, in India.
North America is expected to witness the second-fastest growth in the coming years. Increasing awareness regarding the importance of hair care, along with the presence of prominent players, such as L’Oréal and Procter & Gamble, are key factors driving the market growth in this region. These players are constantly launching new products to meet the changing consumer needs and preferences. For instance, in April 2021, L’Oréal launched its new ultra-premium hair care range, Serie Expert Pro Longer, in the U.S. and Canada.
Financial Projections
In this part of the luxury hair care products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your luxury hair care products business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a luxury hair care products business comes from product sales, subscription services, and advertising. Here you will find a list with a description of each of them and other possible sources of profit such as partnerships, wholesale opportunities, and special events.
Projecting Expenses
In this section, all the regular expenses related to keeping the luxury hair care products business running will be described. The list of operating expenses includes product costs, packaging costs, shipping costs, staff wages, taxes, advertising, and others.
Key companies & market share insights
Some of the key companies operating in the luxury hair care market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In June 2022, L’Oréal SA launched a new range of luxurious haircare products targeted towards the premium consumers segment.
– In August 2022, Kao Corporation launched a new line of shampoos and conditioners designed for high-end hair care.
– In October 2022, Shiseido Co. Ltd. launched a new range of hair masks and treatments designed to provide superior nourishment and softness to the hair.
Some of the prominent players in the luxury hair care market include:
– L’Oréal SA
– Kao Corporation
– Shiseido Co. Ltd.
– Unilever
– Henkel AG & Co. KGaA
– Procter & Gamble Co.
– Estée Lauder Companies Inc.
– Coty Inc.
– Avon Products Inc.
– Revlon Inc.
Global Luxury Hair Care Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global luxury hair care products market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Shampoos
– Conditioners
– Hair Oils
– Hair Serums
– Hair Masks
– Hair Styling Products
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Others
3. Type Outlook (Revenue, USD Million, 2017 – 2030)
– Mass
– Premium
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What are the Key Segments of the Luxury Hair Care Products Market?
[A]: The key segments of the luxury hair care products market are product type (shampoo, conditioner, hair styling product, hair coloring products, and others), distribution channel (salon, online, and others), and region.
[Q]: What Factors are Driving the Growth of the Luxury Hair Care Products Market?
[A]: Increasing disposable income, rising demand for natural and organic hair care products, and the growing awareness of hair care products are driving the growth of the luxury hair care products market.
[Q]: What are the Major Challenges Faced by the Luxury Hair Care Products Market?
[A]: The major challenges faced by the market are the increasing availability of counterfeit products and the harshness of the chemicals used in some luxury hair care products.
[Q]: Who are the Key Players in the Luxury Hair Care Products Market?
[A]: The key players in the luxury hair care products market are L’Oréal S.A., Henkel AG & Co. KGaA, Unilever PLC, Kao Corporation, Shiseido Company Limited, Coty Inc., Procter & Gamble, Godrej Consumer Products Limited, Avon Products Inc., and Johnson & Johnson.
[Q]: Which Region is Expected to Offer the Largest Opportunity for Sales of Luxury Hair Care Products?
[A]: North America is expected to offer the largest opportunity for sales of luxury hair care products, due to the presence of a large population base and the increasing awareness of hair care products.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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