Organic Hair Care Market By Product (Shampoos, Conditioner, Hair Oil), By Sales Channel (Organic Hair Care Products Sold at Professional Salons, Organic Hair Care Products Sold at Specialty Stores)- Global Market Insights 2021 to 2031

Market Snapshot

According to the organic hair care market insights gathered by Fact.MR, the global market is slated to be valued at US$ 9 Bn in 2021, and expand 1.8X over the next ten years. L’Oreal,

The Body Shop, Estee Lauder, The Hain Celestial Group, Amway, and Natura Cosméticos S.A. are prominent organic hair care product manufacturers, accounting for more than 1/5 global revenue share.

Demand for Organic Haircare from 2016 to 2020 Vs Sales Forecast for 2021 to 2031

As per Fact.MR’s organic hair care industry survey, historically, from 2016 to 2020, use of natural hair care products rose at a CAGR of 6.2%, with developed markets such as the US, Canada, Germany, and the U.K. leading market growth.

Globally, demand for organic hair care has increased by nearly twofold over the past half-decade, owing to the consumer inclination towards organic products. Strong demand waves has provided a major impetus to the sales of these products, which has cascaded the effect to investments in R&D.

Countries with dynamic consumerism such as India, China, and Japan has paved the way for strong growth of the hair care industry. Large population and positive network externalities have helped these countries achieve strong growth in the business of organic hair care over the past half-decade. These countries together accounted for more than 70% of the Asia Pacific market share in FY2020.

Rising consumer inclination towards hair grooming products coupled with increasing awareness of healthy hair and scalp has also driven the market over the same period.

In FY2020, demand for hair care products declined by nearly 4% across regions, owing to the reduced need for the hair grooming due to being at home. Reopening of the market in Q4 FY2020 has provided a recuperative growth to hair care businesses.

Growing uses of herbal hair care products such as olive oil-based shampoos, oil, conditioners, hair gels, and others has paved the way for strong market growth over the long-run. Over the period of 2021-2031, the market is anticipated to progress at a CAGR of more than 7%.

What are the Key Opportunities for Organic Haircare Product Manufacturers?

Governments have restricted some chemicals from being used in the manufacturing of hair care products, such as ammonia in hair color. This, in turn, has created a pathway and a blueprint for herbal manufacturers to enter the hair care business with full force.

From a consumer standpoint, rising inclination and awareness of herbal hair care products over synthetic products is anticipated to create an absolute $ opportunity of more than US$ 500 Mn in revenue for organic hair care stakeholders.

Moreover, manufacturers are using salon and beauty parlors to channel their products with heavier discounts, which is anticipated to provide stimulus to herbal hair care product businesses over the long-run.

Aforementioned opportunities could be utilized by organic hair care manufacturers to capture a higher dollar opportunity over long-run forecast period.

Why are Water-based Organic Hair Care Products Highly Demanded?

The organic hair care market is a testament to the relentless push for innovation by personal care brands. These trends are underpinned by increasing demand for organic hair care products that include natural botanicals and are free from any artificial enhancements. The market is also benefiting from a transparent list of ingredients and manufacturing processes.

Growing demand for organic shampoos with pure plant ingredients to suit specific hair care needs, such as maintaining oily hair and dry scalp, is fueling the growth of the market. Advances natural botanical-based formulations are fueling market expansion.

In recent years, manufacturers of organic hair care products have shifted from solvent-based hair care products to water-based hair care products because these formulations have minimal side-effects.

Country-wise Analysis

Why is the Matured Organic Hair Care Industry in the U.S. Still Growing Steadily?

The U.S. has numerous manufacturers and distributers across the world. Over the historic period, the U.S. market registered a CAGR 6.7%. The country is a dominant player for organic hair care not only in North America but also holds a top three rank in the world.

In this country, numerous manufacturers have launched new organic-based hair care products along with developing existing products. As the U.S. has a well organised sales channel, strong market dynamics and long holding dominance in consumer-centric products are expected to boost the market over the forecast period

Why Does China Hold Huge Opportunity for Organic Hair Care Product Suppliers?

With an absolute dollar opportunity of around US$ 2.1 Bn, APEJ is expected to be the most profitable market for organic hair care product manufacturers and suppliers. In this region, China is the leading country and is expected to witness high single-digit growth during forecast period 2021-2031.

With the fast-paced growth of its economy and changes in lifestyle, consumer behaviour has taken a U-turn with respect to purchasing patterns, thereby benefiting market growth.

Category-wise Insights

Will Shampoos Continue to Dominate the Demand Outlook for Organic Hair Care Products?

Shampoos have remained an integral part of hair care as well as personal care. In FY2020, shampoos held nearly 1/3 market share in hair care as well as organic hair care.

Over the long-run forecast period, organic shampoos are anticipated to create US$ 500 Mn incremental opportunity every year till 2025, and then, with US$ 700 Mn as added opportunity till the end of the forecast period. Over the same period, anticipated growth rate is over 7% CAGR for organic shampoos.

Which Sales Channel is Anticipated to Create Strong Business Environment for Organic Hair Care Suppliers?

Strict lockdowns across regions over the period of Q2 and Q3 2020 shaped the market dynamics in a positive way. Consumers have moved from conventional markets such as stores to e-commerce websites to purchase personal care products, including hair care products.

Despite opening up of markets, scare of COVID-19 contraction has led consumers to move towards online sales channels. Manufacturers such as L’Oréal, Unilever, Body Shop, and others are channelling their products through Amazon, Flipkart, and from their personalized e-commerce websites.

Over FY2020, the online sales channel gained nearly 100 BPS, and especially in Q2 and Q3, gain in BPS varied from 200-250 BPS across the top 3 regions.

Competitive Landscape

Analysis of organic hair care show that a majority of companies are focusing on product launches and expanding their manufacturing units in developing regions. Strategies include innovation, collaborations with key players, partnerships, strategic alliances, and strengthening of regional and global distribution networks.

Key market developments include :

• In 2018, Brylcreem a product line of Hindustan Unilever Limited, along with Amazon, introduced a new product line for men grooming for the hair and beard segment. Amazon became the main e-Commerce distributor for this product line.
• In 2020, Kao Corporation launched a new product under a new brand PYUAN, which was introduced in 2015 as Merit PYUAN. PYUAN is focusing on shampoos for sticky and hair with dry ends.
• In 2019, LG Household & Health care acquired Avon Company, in partnership with Farouk System and LG H & H. The new Avon company introduced an Avon Chi Essentials hair care product line.

Similarly, recent developments related to companies manufacturing organic hair care products have been tracked by the team at Fact.MR, which are available in the full market report on organic hair care.

Market Segments Covered in Organic Hair Care Industry Research

• By Product :

  • Shampoos
  • Conditioner
  • Hair Oil
  • Hair Colorants
  • Styling Agents
  • Others

• By Sales Channel :

  • Organic Hair Care Products Sold at Professional Salons
  • Organic Hair Care Products Sold at Specialty Stores
  • Organic Hair Care Products Sold through Modern Trade
  • Organic Hair Care Products Sold at Drug Stores
  • Organic Hair Care Products Sold through Online Stores
  • Others