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Natural Hair Care Product Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global natural hair care products market was valued at USD 4.9 billion in 2021 and is projected to expand at a CAGR of 6.3% from 2022 to 2030. The growth of the market is driven by the increasing awareness regarding the benefits of using natural products for hair care. The growing number of hair care products with natural ingredients is expected to drive the market growth. Additionally, the increasing demand for organic products among the consumers is generating a need for natural hair care products. Furthermore, the growing demand for sustainable products among the consumers is driving the market growth.
The increasing trend of veganism is also driving the demand for natural hair care products. The growing awareness among the consumers about the benefits of vegan products is driving the demand for organic and natural hair care products. Additionally, the increasing use of natural ingredients such as essential oils, coconut oil, and shea butter in the manufacturing of natural hair care products is driving the market growth. Furthermore, the growing demand for natural products due to the harmful effects of chemicals on the scalp and hair is driving the market growth.
The increasing number of trendy products such as sulfate-free shampoos, conditioners, and styling products is further driving the market growth. Additionally, the increasing demand for natural hair care products with natural ingredients is driving the market growth. Furthermore, the increasing trend of customization of products according to consumer needs is expected to drive the market growth.
The rising consumer awareness of the benefits of natural products is driving the demand for natural hair care products. Additionally, the increasing number of product launches with natural ingredients such as argan oil, avocado oil, and jojoba oil is expected to drive the market growth. Furthermore, the increasing consumer preference for natural products due to the rising health concerns is expected to drive the market growth.
Moreover, the increasing number of salons offering natural hair care products is driving the market growth. Furthermore, the growing trend of online shopping for natural hair care products is expected to drive the market growth. Additionally, the increasing number of collaborations between distributors, retailers, and manufacturers is expected to drive the market growth in the near future.
Product Insights
The natural hair care products segment accounted for the highest share of more than 60% in 2022. The increasing demand for natural hair care products from the millennial population is a key factor driving the market growth. Moreover, growing consciousness about the usage of chemical-free products, increasing disposable income and the presence of a wide range of natural hair care products are some of the other factors boosting the market growth.
The shampoos segment is estimated to expand at a CAGR of 5.3% over the forecast period. The rising demand for natural and organic shampoos due to their environmental-friendly and non-toxic nature is propelling the market growth. Furthermore, the introduction of innovative products such as shampoos with natural ingredients, herbal shampoos, and shampoos with anti-dandruff properties is driving the market growth. According to a survey conducted by Pew Research Center in 2019, around 64% of consumers preferred natural and organic products.
Distribution Channel Insights
The supermarkets and hypermarkets segment accounted for a major share of the natural hair care products market in 2022. Supermarkets & hypermarkets offer a wide range of products with various prices and brands, enabling customers to compare prices and make convenient purchases. According to a survey conducted by Mintel in 2019, around 74% of American women aged between 18 and 34 years prefer buying hair care products from supermarkets & hypermarkets. The presence of major global players in this segment is also anticipated to boost the growth of the segment.
The online segment is expected to register the highest CAGR of 11.1% during the forecast period. The growing penetration of the internet and the increasing number of smartphone users are expected to drive the growth of the segment. Additionally, the availability of a wide range of natural hair care products on e-commerce websites is also projected to fuel the segment’s growth. Furthermore, the increasing number of social media platforms, such as Instagram and Pinterest, are providing a platform to hair care product manufacturers to advertise their products, which is further boosting the segment’s growth.
Type Insights
The organic and natural segment accounted for the largest revenue share of 40.5% in the year 2022. The increasing demand for organic and natural products is due to their non-toxic, less damaging, and long-lasting effects on hair. The increasing awareness and trend of natural hair care products among consumers, especially the millennials, are contributing to the growth of the organic and natural segment. Furthermore, the rising demand for natural hair care products in developed countries such as the US, Canada, and the UK is also driving the segment’s growth.
The synthetic segment is anticipated to expand at the highest CAGR of 8.9% over the forecast period. The increase in the demand for synthetic hair care products is because of their low cost and availability of a wide range of products. Furthermore, the increasing demand for synthetic products from the middle-income population in developing countries is propelling the segment’s growth. For instance, Unilever launched a new range of synthetic hair care products called Love Beauty and Planet in 2018. This range of products is designed for curly hair and is available in various fragrances.
Regional Insights
North America dominated the market and accounted for the largest revenue share of more than 43.7% in 2022. The region’s high demand for natural and organic products is a key factor driving this growth. The presence of a large number of beauty and wellness stores across the region has further increased the availability of natural hair care products, which has further propelled the growth of the market in the region.
Asia Pacific is expected to register the fastest growth in the coming years. An increase in the number of consumers looking for natural hair care products and an upsurge in the number of hair styling salons offering natural and organic hair care services are some of the key factors driving the growth of the market in the region. For instance, in April 2021, Chinese natural and organic hair care brand, NaturPro, launched its new range of products in India.
Financial Projections
In this part of the natural hair care product 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 natural hair care product business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a natural hair care product business comes from product sales, subscriptions, bulk orders, and advertising. Here you will find a list with a description of each of them and other possible sources of profit such as affiliate marketing, sponsorship, and promotions.
Projecting Expenses
In this section, all the regular expenses related to keeping the natural hair care product business running will be described. The list of operating expenses includes manufacturing costs, packaging costs, inventory management costs, shipping and handling costs, marketing, advertising, and others.
Key companies & market share insights
Some of the key companies operating in the natural hair care product 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’Oreal launched a new hair care line designed specifically for natural and curly hair.
– In August 2022, Shea Moisture launched a new line of shampoo, conditioner, and styling products infused with natural ingredients.
– In October 2022, Carol’s Daughter launched a new line of hair care products for textured hair.
Some of the prominent players in the natural hair care product market include:
– L’Oréal SA
– Unilever PLC
– Procter & Gamble Co.
– The Estée Lauder Companies Inc.
– Shiseido Co., Ltd.
– Kao Corporation
– Godrej Consumer Products Ltd.
– Avon Products, Inc.
– Henkel AG & Co. KGaA
– Revlon, Inc.
Global Natural Hair Care Product 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 natural hair care product market based on product type, distribution channel, and region:
1. Product Type Outlook (Revenue, USD Million, 2017 – 2030)
– Shampoos
– Conditioners
– Hair Oils
– Hair Masks
– Hair Styling Products
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Others
3. 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 product segments of Natural Hair Care Products?
[A]: Natural hair care products are segmented into products such as shampoos, conditioners, hair oils, hair colorants, hair styling products, and others.
[Q]: What are some of the factors driving the growth of the Natural Hair Care Products Market?
[A]: Increasing demand for organic products, growing awareness among consumers about the harmful effects of chemical-based products, and increasing disposable income are some of the key factors driving growth in the natural hair care products market.
[Q]: Who are the major players in the Natural Hair Care Products Market?
[A]: Major players in the Natural Hair Care Products market include Unilever, L’Oréal, Beiersdorf AG, Johnson & Johnson, Procter & Gamble, Henkel AG & Co KGaA, Avon Products Inc., Shiseido Co., Ltd., KAO Corporation, and The Himalaya Drug Company.
[Q]: What are the opportunities available in the Natural Hair Care Products Market?
[A]: Growing demand for organic products, changing consumer preferences, and growing awareness of natural ingredients in hair care products provide opportunities for growth in the natural hair care products market.
[Q]: What region offers the largest opportunity for sales of Natural Hair Care Products?
[A]: Asia Pacific is expected to be the most lucrative region for natural hair care products, with an absolute dollar opportunity of $3.3 B (USD). This region is expected to witness a high growth rate due to factors such as increasing disposable income and the presence of a large number of natural hair care product manufacturers.
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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