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Hair Color Market

Hair Color Market Analysis by Product (Permanent, Semi-permanent, Demi-permanent, Bleach-highlights, Temporary Hair Color), by Nature (Natural, Chemical Hair Color), by Gender (Male, Female, Unisex), by Distribution Channel, by Region – Global Forecast 2021-2031

Analysis of Hair Color market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Hair Color Market Outlook

The global hair colour market is expected to reach a value of US$ 21.4 billion in 2021, with a CAGR of around 5% over the next ten years. 
The ongoing COVID-19 pandemic forced the closure of all salons, indicating a drop in demand for professional hair colours. To combat this, major businesses are investing in the development of DIY-based professional hair colors that can be applied at home. There has been a rapid increase in consumer desire for natural hair color due to its many benefits over synthetic hair color.

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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
Hair Color Market

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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. 

Know thy Competitors

Competitive landscape highlights only certain players
Complete list available upon request

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. 

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.

hair color market nature

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. 

hair color market nature

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.

Competition Landscape 

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
  • Uniliver

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.

Report Scope   

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

US$ Mn for Value

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • Japan
  • APEJ
  • MEA

Key Countries Covered

  • United States
  • Canada
  • Brazil
  • Mexico
  • Germany
  • U.K.
  • France
  • Spain
  • Italy
  • BENELUX
  • South Africa
  • GCC Countries
  • China
  • Japan
  • South Korea
  • India
  • Indonesia
  • Malaysia
  • Singapore
  • Australia and New Zealand

Key Segments Covered

  • Product
  • Nature
  • Gender
  • End Use
  • Distribution Channel
  • Region

Key Companies Profiled

  • Kao Corporation,
  • Henkel AG & Co. KGaA,
  • L’Oréal S.A,
  • Avon Products Inc.,
  • Estee Lauder Cos.,
  • Coty Inc.,
  • Combe Incorporated,
  • Revlon, Inc.,
  • Godrej Consumer Products Limited,
  • Shiseido Company, Limited
  • Uniliver

Pricing

Available upon Request

Market Taxonomy

  • By Product         

    • Permanent Hair Color
    • Semi-permanent Hair Color
    • Demi-permanent Hair Color
    • Bleach-highlights
    • Temporary Hair Color
  • By Nature

    • Natural Hair Color
    • Chemical Hair Color
  • By Gender

    • 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
    • Others
  • By Region

    • North America
    • Latin America
    • Europe
    • Japan
    • APEJ
    • MEA

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Top 5 Key market participants in the global Hair Color market are Kao Corporation, Henkel AG & Co. KGaA, L’Oréal S.A, Avon Products Inc., Estee Lauder Companies

The Hair Color industry is expected to possess nearly 75% market share throughout U.S.

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.

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.

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.

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