TAGS: Hair Care
According to Grand View Research, the global shampoo bar market size to be valued at USD 17.0 million by 2025 and is expected to grow at a compound annual growth rate (CAGR) of 7.6%.
Content: According to Grand View Research, the global shampoo bar market size to be valued at USD 17.0 million by 2025 and is expected to grow at a compound annual growth rate (CAGR) of 7.6% during the forecast period.
Key Factors Driving Market
Rising awareness regarding health, hygiene, and harmful side effects associated with the long-term use of chemical cosmetics and personal care products are propelling the demand for shampoo bars with zero plastic waste.
In addition, to cut down the increasing burden of plastic waste, customers are adopting packaging-free personal care products. Growing consumer awareness regarding personal hygiene and safety from harmful chemicals including parabens, phthalates, and aluminum salts is expected to promote the demand for shampoo derived from organic, herbal, and natural ingredients.
Changing consumer preferences for natural ingredient products due to their advantages such as dandruff protection and hair fall control is expected to boost the growth of the shampoo bar industry over the forecast period.
Over the past few years, plastic waste has become a major environmental concern owing to its harmful effects on marine life as well as humans and other land animals. This global issue led manufacturers to avoid plastic packaging, especially cosmetics product packaging. These global pollution issues will promote the packing of free shampoo bars over the forecast period.
Government policies are supporting organic and natural cosmetics and personal care products. For instance, in April 2014, the European Commission amended Annex II of the EU cosmetic Regulation, by prohibiting five types of parabens in cosmetic products including isopropylparaben, isobutylparaben, phenylparaben, benzylparaben, and pentylparaben. These stringent government policies are expected to support the utility of shampoo bars in the foreseeable future.
Shampoo Bar Market Trends
The market growth is attributed to the significance of consumer awareness of the negative effects of chemical-based shampoos, hygiene concerns, and the benefits of using natural herbs and organic constituents in shampoo bars. Consumer concerns about hair loss and dandruff are also driving the demand for shampoo bars.
Moreover, the market is growing due to the high consumer awareness of the negative environmental effects of plastic containers for liquid shampoo. This environmental awareness is expected to drive market growth in the forecast period.
The scalp condition is affected due to a variety of elements that are including poor eating habits, climatic changes, stress, and others. As a result, there is a high occurrence of hair-related problems among all age groups. Therefore, the need for essential hair nourishment and better scalp conditions are expected to drive market expansion in the forecast period.
The production cost is expected to be high due to the limited availability of herbal ingredients which is projected to narrow down the customer base for the shampoo bar market.
Distribution Channel Insights
Online distribution channels emerged as the largest segment in 2018, accounting for a 70.5% share of global revenue. The bar shampoo product is in its emerging stage therefore, the product needs a lot of marketing strategies such as product advertisement, celebrity marketing, and product awareness campaigns. Key manufacturers are adopting strategies to promote their products on online platforms. For instance, U.K.-based Lush Cosmetics announced to launch of its 24/7 TV video channel in order to increase product visibility as well as customer penetration through online channels.
Offline channels are expected to generate a revenue of USD 5.0 million by the year 2025. Key players are launching exclusive stores in order to increase product visibility. For instance, Lush Retail Ltd. opened its exclusive outlet in Manchester, the U.K. This exclusive outlet is packaging free, which means that the products are free from plastic packaging.
Regional Insights
North America emerged as the largest regional market in 2018, accounting for a 65.7% share of the total revenue. Manufacturers are adopting marketing strategies such as new product launches, expansion of retail chains, and mergers and acquisitions. For instance, Rocky Mountain Soap Company Inc., a Canada-based bar shampoo manufacturer, announced the expansion of its retail chain. The company decided to add 10 retail shops in western Canada. These initiatives ensure the significant demand for the product over the forecast period.
Asia Pacific is the fastest growing regional market with a CAGR of 8.2% from 2019 to 2025. Manufacturers are launching new products with various messages such as organic, herbal, and chemical-free in order to promote product qualities among the customers. Over the past few years, Australia, New Zealand, and China have witnessed an increase in product launches. For instance, in January 2017, Lush Retail Ltd., re-launched its bar shampoo product with a cruelty-free message.
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Source: Grand View Research
