Key Questions Answered in Report
What is the expected growth rate for the hair color market through 2031?
By value, Fact.MR has projected close to 5% CAGR for hair color sales during 2021-2031. The market was valued at around US$ 21.4 Bn in 2020.
Which are the most lucrative markets for hair color manufacturers?
As per Fact.MR’s projections, the U.S., Germany, France, Italy, China, Japan, South Korea, India, and GCC countries are markets expanding at high CAGRs. Together, East Asia and South Asia are projected to hold above one-third market share through 2031.
Who are the prominent hair color manufacturers?
Top suppliers of hair color include tier-1 companies such as L'Oréal, Uniliver, Coty Inc., Estee Lauder Companies, and Revlon Inc., which together accounted for around 30% share of global revenue in 2020.
Report Also Addresses:
- Market Estimates and Forecasts (2016-2031)
- Key Drivers and Restraints Shaping Market Growth
- Segment-wise, Country-wise, and Region-wise Analysis
- Competition Mapping and Benchmarking
- Brand Share and Market Share Analysis
- Key Product Innovations and Regulatory Climate
- COVID-19 Impact on Hair Color and How to Navigate
- Recommendation on Key Winning Strategies
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Sales of Hair color in 2016 to 2020 Vs Projections for 2021 to 2031
Historically, from 2016 to 2020, use of hair color increased at around 2.6% CAGR, wherein, developed countries such as the U.S., Germany, Italy, and France held a significant share of the global market.
From a consumption standpoint, the market has been projected to grow at a steady CAGR, with professional hair salon consumption of DIY hair color products playing a crucial role in driving overall demand. Moreover, plethora of social media campaigns regarding recent hair colouring trends has also acted as a wedge to market growth.
Despite the fact that COVID-19 will have a considerably higher economic impact on brands and stores than any recession, there are indicators that the beauty sector may once again expand at a considerable CAGR once the pandemic situation is overcome. In China, the beauty industry's Q1 FY2021 sales dropped by up to 80% as compared to the previous year.
Owing to these factors, demand over the long-term forecast period can be estimated by breaking the forecast timeline into three parts. In the short run, recovery growth is set to be observed. Followed by demand normalization during the medium-term forecast period. Finally, economic cycles and inflation rates are poised to impact the demand and pricing of the product in the long run.
Considering these statistics and shift in dynamics, the market for hair color is forecast to expand at a healthy CAGR of close to 5% over the coming 10 years.
What is the Go-To Strategy of Hair Color Manufacturers for Attracting Consumers?
To attract customers to buy their hair color products regularly, key companies in the market use a variety of advertising mediums such as television commercials, digital marketing, and social media campaigns, among others.
Besides, key players have been promoting their products in shopping malls, on television, and billboards, emphasising their unique features and benefits while also appealing to the sentimental side of buyers.
Most of these commercials use well-known celebrities as brand ambassadors, portraying themselves as frequent users of these items and encouraging viewers to try them out for themselves. This has remained the go-to strategy for attracting customers towards using hair color products frequently.
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What are the Upcoming Trends in the Hair Color Industry?
One of the newest industry trends is hair color made with organic and vegan ingredients. The numerous advantages of such substances in hair colouring products are luring newer customers to the market.
However, organic hair color have few drawbacks as compared to chemical hair color. Organic hair color do not penetrate the hair cuticle; instead, they coat the hair's external surface only. Besides, it does not cause hair damage, whereas synthetic hair color penetrates the hair cuticle to some amount, resulting in hair loss, breakage, and thinning.
What are the Challenges Faced by Hair Color Manufacturers?
Procuring hair color ingredient and chemicals have caused a slew of problems for manufacturers. Coal tar-based hair colour, for example, is completely forbidden in the European Union due to concerns that coal tar may cause cancer.
In North America, coal tar-based hair colour can be sold as long as there is a warning label on the product stating that it contains coal tar. This would allow the product to be sold in North America.
Owing to these aforementioned factors, the makers are forced to utilise different ingredients depending on regional requirements, creating a hindrance for market growth.
Country Wise Analysis
What Makes the U.S. an Important Market for Hair Color Manufacturers?
The U.S. has remained one of the prominent countries for hair color and is anticipated to account for above 75% of North American market value as of 2021. It is also anticipated to grow at a moderate CAGR of 4% during the forecast period. This is because the country remains one of the major contributors to the growth of the cosmetics industry.
Furthermore, several cosmetic manufacturers are on the hunt to cater the dynamic needs of the customers, with newer customized product offerings. Besides, U.S. women spend a lot on cosmetic products annually and accounted for around 20% of the global beauty market as of 2019.
Why is Germany a Lucrative Market for Hair Color Products?
Germany has remained one of the most important regions for hair color business, and is anticipated to account for above 1/3 of the European market value in 2021. This is due to the fact that more than 10% of men and 60% of women in Germany color their hair on a yearly basis, according to the survey conducted by Fact.MR.
Germany has been listed as one of the important countries in a newly published research report of Fact.MR. According to this report, Germany is poised to create an absolute dollar opportunity of around US$ 1.3 Bn by 2031.
Why are Hair Color Manufacturers Eyeing China?
Despite reopening of the market in China earlier than any other country post-COVID, hair color sales were limited to around US$ 2 Bn in 2020. Besides, over 90% of China's drugstores, supermarkets, beauty-product specialist businesses, and department stores reopened by mid-April FY2020. Prime reason for limited hair dye sales was due to reduced consumer spending, thus hurting demand for non-essential grooming products, including hair color.
However, the situation is slowly reviving and China has started to recuperate its economy bit by bit with the provision of incentives to consumers as well as manufacturers. Owing to the aforementioned factors, the market in China is poised to expand at a healthy CAGR of over 6% during the forecast period.
What Makes Japan a Growth Epicentre for Hair Color Suppliers?
After China, Japan is one of the most important countries in the East Asian hair colouring market accounting for around 30% market share in 2020. This is owing to the fact that the number of elderly people in Japan has been steadily increasing. More than 40% of the population is over 65 years old now, and this number is predicted to rise to 60% by 2050.
In many ways, the ageing population is a problem for overall economic growth, but it is a good element for hair color and cosmetic product manufacturers. Besides, consumption is predicted to rise among these older population who would use these hair color products frequently to cover their grey hair.
Furthermore, Japan was featured as one of the important countries in a newly published research by Fact.MR, which provided extensive insights into pricing, current trends, and other variables. According to this report, Japan is poised to create an absolute dollar opportunity of around US$ 900 Mn by 2031.
Category Wise Insights
Which Hair Color Type is Widely Preferred among Consumers?
Natural hair color, as product type, accounted for over 3/5 of overall demand for hair color in 2020. This is due to the fact that there are high disposable income groups seeking high-quality natural hair color. These groups always look out for the labels which source natural material used to produce the hair color.
Besides, the majority of these consumers are concerned about any side effects which chemical colours might have on their hair. Owing to this, the usage of chemical hair color is decreasing as people become more aware of the negative consequences of using such products.
Additionally, growing awareness of the benefits of herbal colours, consumers are ever more inclined to choose clean label hair care products. As a result, consumer interest in natural hair color products is rising at a rapid pace, and the segment is estimated to expand at a CAGR of 5.4% during the forecast period of 2021-2031.
Why are Online Distribution Channels Gaining Popularity for Purchasing Hair Color?
During the ongoing pandemic, online distribution has increased dramatically and accounted for around 14% sales as of 2020. Majority of salon professional establishments were closed, making it impossible for customers to maintain their usual hair care routine. As a result, such a need has strengthened online sales channel share in worldwide hair color sales, which will continue to expand even after the pandemic.
For example, The Estée Lauder Companies generated $14.2 billion in revenue as of 2020, from all categories, with cosmetic products accounting for 89% of revenue. Out of this, online distribution channel accounted for around 23% of the company's total income.
Besides, the sector has reacted well to the crisis, with companies switching production to hand sanitizers and cleaning chemicals and offering free beauty services to first responders. Owing to the aforementioned factors, hair color sales are poised to return back to growth trajectory once the pandemic situation is overcome.
Fact.MR has profiled the following prominent hair color manufacturers in its report:
- Kao Corporation,
- Henkel AG & Co. KGaA,
- L’Oréal S.A,
- Avon Products Inc.,
- Estee Lauder Companies,
- Coty Inc.,
- Combe Incorporated,
- Revlon, Inc.,
- Godrej Consumer Products Limited,
- Shiseido Company Limited
In order to maintain their market position, increase their global footprint, and neutralise competition in high-potential locations, key market players have been focusing on a blend of organic and inorganic strategies.
- In May, 2020 Coty agreed to sell a majority of its Beauty and Retail Hair Businesses, including the ghd brands, Clairol, Wella and OPI for US$ 4.3 billion to KKR. Under the terms of the agreement, Coty will spin off its Professional Beauty Division as a separate company, with KKR taking a 60% stake and Coty keeping the remaining 40%.
- On February 1, 2021, L’Oréal has completed the acquisition of Takami Co. and added vital products from Takami Co. to its portfolio.
Similarly, recent developments related to companies manufacturing hair color have been tracked by the team at Fact.MR, which are available in the full report.
Historical Data Available for
US$ Mn for Value
Key Regions Covered
Key Countries Covered
Key Segments Covered
Key Companies Profiled
Available upon Request
- Permanent Hair Color
- Semi-permanent Hair Color
- Demi-permanent Hair Color
- Temporary Hair Color
- Natural Hair Color
- Chemical Hair Color
- Hair Color for Males
- Hair Color for Females
- Unisex Hair Color
By Distribution Channel
- Online Sales of Hair Color
- Hair Color Sold at Specialty Stores
- Hair Color Sold at Departmental Stores
- Hair Color Sold at Hypermarkets, Supermarkets, and Convenience Stores
- Hair Color Sold at Salons
- North America
- Latin America
Hair Color Market - Scope of Report
A recent study by Fact.MR on the hair color market offers a 10-year forecast for 2021 to 2031. The study analyzes crucial trends that are currently determining the growth of the market. This report explicates on vital dynamics, such as the drivers, restraints, and opportunities for key market players along with key stakeholders as well as emerging players associated with the development of hair color.
The study also provides the dynamics that are responsible for influencing the future status of the market over the forecast period. A detailed assessment of value chain analysis, business execution, and supply chain analysis across regional markets has been covered in the report.
A list of prominent companies manufacturing hair color, along with their product portfolios, enhances the reliability of this comprehensive research study.
The study offers comprehensive analysis on diverse features, including production capacities, demand, product developments, revenue generation, and sales of hair color across the globe.
A comprehensive estimate on the market has been provided through an optimistic scenario as well as a conservative scenario, taking into account the sales of hair color during the forecast period. Price point comparison by region with global average price is also considered in the study.
Fact.MR has studied the hair color market with detailed segmentation on the basis of product type, nature, gender, distribution channel, and region.
“This taxonomy prepared is confidential and intended exclusively for the individual or entity with whom it is being shared. Reading, disseminating, distributing, or copying this to any party other than addressee(s) is unauthorized and prohibited.”
Analysis on Market Size Evaluation
The market has been analyzed for each market segment in terms of value (US$ Mn).
Market estimates at global and regional levels for hair color are available in terms of “US$ Mn” for value. A Y-o-Y growth contrast on prominent market segments, along with market attractiveness evaluation, has been incorporated in the report. Furthermore, absolute dollar opportunity analysis of all the segments adds prominence to the report. Absolute dollar opportunity plays a crucial role in assessing the level of opportunity that a manufacturer/distributor can look to achieve, along with identifying potential resources, considering the sales and distribution perspective in the global hair color market.
Inspected Assessment on Regional Segments
Key sections have been elaborated in the report, which have helped deliver projections on regional markets. These chapters include regional macros (political, economic, and business environment outlook), which are expected to have a momentous influence on the growth of the market during the forecast period.
Country-specific valuation on demand for hair color has been offered for each regional market, along with market scope estimates and forecasts, price index, and impact analysis of the dynamics of prominence in regions and countries. For all regional markets, Y-o-Y growth estimates have also been incorporated in the report.
Detailed breakup in terms of value for emerging countries has also been included in the report.
In-depth Analysis on Competitive Landscape
The report sheds light on leading manufacturers of hair color, along with their detailed profiles. Essential and up-to-date data related to market performers who are principally engaged in the production of hair color has been brought with the help of a detailed dashboard view. Market share analysis and comparison of prominent players provided in the report permits report readers to take preemptive steps in advancing their businesses.
Company profiles have been included in the report, which include essentials such as product portfolios and key strategies, along with all-inclusive SWOT analysis on each player. Company presence is mapped and presented through a matrix for all the prominent players, thus providing readers with actionable insights, which helps in thoughtfully presenting the market status, and predicting the competition level in the hair color market. Prominent players operating in this space include Kao Corporation, Henkel AG & Co. KGaA, L’Oréal S.A, Avon Products, Inc., Estee Lauder Cos., Inc., Coty Inc., Combe Incorporated, Revlon Inc., Godrej Consumer Products Limited, and Shiseido Company, Limited.
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Is the market research conducted by Fact.MR?
Yes, the report has been compiled by expert analysts of Fact.MR, through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to a research analyst.
What research methodology is followed by Fact.MR?
Fact.MR follows a methodology that encompasses the demand-side assessment of the market, and triangulates the same through a supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions.
What are the sources of secondary research?
Fact.MR conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.
Who are the respondents for primary research?
Fact.MR speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, and industry experts. For a full list of primary respondents, please reach out to us.
Is a sample of this report available for evaluation?
Yes, you can request a sample, and it will be sent to you through an email.