Positive Network Externalities to Assist Growth of Hair Grooming Products Market, Says Fact.MR
Published : 29 Jun 2021 Industry: Consumer Goods
As per a revised report published by Fact.MR - a market research and competitive intelligence provider, the global hair grooming products market is anticipated to exceed a valuation of US$ 83 Bn by 2021, and expand at a moderate CAGR of 3.3% over the forecast period of 2021 to 2031.
The hair grooming industry generates billions of dollars in incremental opportunity every year. The backbone of this strong revenue generation is positive network externalities among consumers across the globe. Positive network externalities not only helps manufacturers generate strong revenue but also assists them in enhancing their brand value in the market.
Over the past-half decade, various novel and conventional hair grooming products have penetrated the consumer basket, cascading a portrayal of compressed price elasticity of demand of the products. Besides increase in demand for hair grooming products, hair grooming services growth has also assisted the market stance. Collaboration of potential players such as L’Oréal, Unilever, and others with salons has provided a strong wave to the market.
Apart from collaboration, manufacturers tend to sponsor various fashion events such as the Paris Fashion Week, Haute Couture Fashion Week, New York Fashion Week, Milan SS Ready to Wear, and numerous other events. These sponsorships are solely to enhance the promotion of their products, and have a direct impact on product demand and positive network externalities of the market.
Key Takeaways from Market Study
- Hair colour segment is expected to remain the most attractive, and likely to witness an absolute dollar opportunity of US$ 4.5 Bn during 2021 – 2031.
- Based on distribution channel, departmental stores are anticipated to be the most lucrative with a BPS of 34.
- Based on product, demand for shampoos is expected to grow 1.3X during the projection period.
- Together, North America and Europe represented nearly 50% of overall market share in 2020.
- The market in APEJ is expected to gain 93 BPS and be valued at US$ 10 Bn by 2031.
“Consumer inclination towards organic products to enhance the price elasticity of synthetic hair care products,” says a Fact.MR analyst.
Competition Tuning Factor
Key manufacturers of hair grooming products should focus on rapidly growing markets of South Korea, Japan, and China, owing to increase in personal care spending and strong winds of positive network externalities over utilization of premium hair care products.
Moreover, rising population of baby boomers in these countries will pave the way high demand for hair care products such as hair oil and hair color. Furthermore, promotion of products with multilingual packaging will enhance overall promotion and sales.
Find More Valuable Insights
Fact.MR, in its new offering, presents an unbiased analysis of the global hair grooming products market, presenting historical market data (2016-2020) and forecast statistics for the period of 2021-2031.
The study reveals essential insights on the basis of product (shampoos, hair oil, conditioners, hair styling products, and hair color) and distribution channel (hypermarkets/supermarkets, departmental stores, online sales, and other retail formats), across 6 major regions of the world (North America, Latin America, Europe, Japan, APEJ, and MEA)
About Consumer Goods Division at Fact.MR
Our Consumer Goods consulting team guides organizations at each step of their business strategy by helping you understand how the latest influencers account for operational and strategic transformation in the chemical and material sector. Our expertise in recognizing the challenges and trends impacting the global Consumer Goods industry provides indispensable insights and support – encasing a strategic perspective that helps you identify critical issues and devise appropriate solutions.
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Consultant – Consumer Goods