TAGS: Hair Care
According to Grand View Research, the global hair color market size was valued at USD 23.15 billion in 2021 and is anticipated to register a CAGR of 5.7% from 2022 to 2028.
Factors Driving Growth
The substantial growth in the popularity of hair coloring coupled with the rise in the aging population across the globe is one of the major factors that will propel the market growth during the forecast period.
Along with that, the rising fashion trends and significant product innovation in product formulation and formats further contribute to the growth of the market. However, the side effects of regular usage of hair dye are further projected to restrain the market growth during the forecast period.
Moreover, rising brand recognition and influence of hair coloring products through social platforms are further projected to propel the market growth during the forecast period. The increasing awareness regarding the hair color ingredients and their effects on the hair further supports the inclination of consumers, that further propels the market growth.
The aging population further creates significant growth in the market as the aged people mostly use hair dye to recolor their hair. Additionally, the growing trend toward organic hair color products across the globe is further projected to provide a substantial opportunity to the market in the near future.
The COVID-19 pandemic has negatively impacted the global hair color market due to the disruption in the supply chain, manufacturing, and government restrictions on opening retail stores across the globe. Moreover, the major players in the market experienced a decline in the sales revenue of hair color products during the COVID-19 pandemic, which further impacted the market.
For instance, L'Oréal S.A. reported that hair coloring net sales decreased around 7.0% in fiscal 2020 due to the challenging environment as a result of the COVID-19 pandemic. However, the global hair color market is projected to recover in the future and witness strong growth due to resumed activities, sales, trade, and manufacturing across the globe.
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End-User Insights
Based on the end-user, the global hair color market is further classified into men and women. Among these, the women segment contributed to a larger revenue share of around 75% in 2021. The significant trend toward hair coloring in women is one of the major factors that are contributed to the largest market share.
The high expenditure of women on hair care and beauty products as compared to men further supports the largest market share. Around 75% of women use hair dye annually. Therefore, a significant portion of the women population uses the different hair color products across the globe that further contributing to the highest share of the segment.
Additionally, the men's segment is forecast to expand with a significant CAGR of 5.9% during the forecast period. The growing trend for using haircare products among men is one of the major factors that drive the market growth.
Moreover, the growing trend toward trendy hairstyles with different colors among men is further projected to enhance the market growth during the forecast period. Moreover, the significant brand endorsement of hair color by celebrities further encourages the men population toward hair coloring products that further provide significant growth opportunities to the market.
Distribution Channel Insights
Based on the distribution channel, the global hair color market is further classified into offline and online. Among these, the offline segment contributed to a larger market share of around 70% in 2021. The major factor that contributed to the major share of the segment includes the high fondness of customers towards offline retail stores for cosmetics & hair care products.
Moreover, the easy availability of cosmetics & hair color products in brick-and-mortar retail stores, including department stores, specialty multi-retailers, and salons and spas, supported the expansion of revenue in the offline channel segment.
The online segment is forecast to expand with a significant CAGR of 5.9% over the forecast period. The major factor that propels the market growth includes the increasing e-commerce industry in emerging economies. In China, India, and emerging economies, the online channel is gaining traction for cosmetics product browsing and shopping.
Moreover, the growing partnership between major e-commerce companies and hair care product manufacturers in emerging economies is further projected to provide ample opportunities to the market in the near future.
Product Insights
Based on the product, the global hair color market is further classified into permanent, temporary, and others (demi-permanent, highlight, and bleach). Among these, the permanent segment contributed to a larger market share of over 70% in 2021. The significant trend toward permanent hair color due to the wide availability of natural shades is the major factor that is contributed to the largest market share.
Moreover, the permanent hair color provides a more natural look than the other type of hair dyes. Therefore, the consumers prefer permanent hair dyes as compared to other types thus contributing to the significant share.
The temporary hair color segment is forecast to expand with a significant CAGR of 6.2% from 2022 to 2028. The significant rise in the fashion trends of changing hair color occasionally across the globe is one of the major factors that propel the market growth.
By applying the temporary hair dye, the consumers can eventually wash it out if they are not satisfied with the color. Moreover, the temporary hair dye can be easily applied directly from the applicator without pre-mixing them. Therefore, the ease of the application of temporary hair color is further projected to grow significantly in the upcoming years.
Regional Insights
In the global hair color market, Asia Pacific dominated the global market, accounting for over 35% revenue share in 2021. The major factors that propel the market growth include the growing consumer spending on hair care products and the increasing trend of premium hair color products among celebrities in the region.
Moreover, the significant growth in the per capita income in emerging countries such as China, India, and others further supporting to the growth of the market during the forecast period. Moreover, the significant growth in the personal care industry in emerging countries further provides significant opportunities for the growth of the market during the forecast period.
Europe is forecast to expand with a significant CAGR of 6.0% from 2022 to 2028. Well-developed countries, such as Germany, the U.K., and France, are positively contributing to the market revenue. The market is mainly driven due to the strong sales of hair color products through various brands, such as Coty Inc., L'Oréal S.A., Estée Lauder Companies Inc., and Revlon, Inc., along with new product launches from other brands, such as Procter & Gamble, Combe Inc., and Henkel AG & Co. KGaA. Additionally, the presence of well-established offline retail chain for hair cosmetics products in Europe is another factor driving the market in the region.
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Source: Grand View Research
