Hair Dye Market

Hair Dye Market Outlook

The global hair dye market is projected to expand at a steady CAGR of close to 5% over the next ten years, and reach a market valuation of around US$ 32 Bn by 2031-end. The liquid form is the most popular across regions, and is expected to hold more than 50% market share through 2031.

Hair dye holds a competitive market value share in the global hair care market, owing to high usage by all age groups and ethnicities across the globe. Hair dye is extensively used by the aging population to color graying hair and also the younger generation who wants to match their hair color with clothing to follow the latest fashion trends.

Over the past half-decade, this market has been steadily growing due to myriad of applications in terms of improving both, internal and external wellbeing, covering old looks, and shifting to new hair colors by consumers.

In a recently published report by Fact.MR, insights regarding key factors fueling market growth have been offered for the next ten years.

The report tracks trends in 20+ high-growth countries, with the regions of Asia, North America, and Europe leading the way. The impact of COVID-19 has also been detailed in the report, with exhaustive insights into what the years ahead will offer.

Historical & Future Projections

From 2016 to 2020, the market projected a low CAGR of around 2.7%, with salon professional hair dye and at home hair dye playing a crucial role in driving the overall market. Rising demand for hair dye to meet the needs of the aging population and increasing social media campaigns have been supporting market growth.

However, due to the COVID-19 pandemic, market growth declined in FY2020 due to the closure of salons, leading to contraction in demand for professional hair dye.

Owing to these factors, demand over the long-term forecast period can be estimated by breaking the forecast timeline into three parts.

• Short-run: Recovery growth is set to be observed over this term.
• Medium-run: Demand and price normalization are set to be observed over this period.
• Long-run: Economic cycles and inflation rates to affect demand and pricing of the product.

Assessing the market over the forecast period, it is anticipated to grow at a moderate rate in the short-run (2021-2024), while in the medium run, it is expected to record higher growth.

Which are the potential regions for high hair dye sales?

Majority of countries in North America and Europe lie under the high-income category, which has been the reason for increasing disposable income in these regions, further being reflected in high spending on personal care and hair care products.

East Asia has been a major player in terms of consumption of hair dye. The aging population has been drastically increasing in this region, and this is why the consumption of hair dye is expected to increase over the coming years.

The market in South Asia & Oceania is expected to grow during the forecast period due to increased spending on grooming, leading to rise in product adoption.

What are the trends in the hair dye industry?

The market is highly dynamic with players involved in launching innovative products to attract consumers towards them.

Organic and vegan ingredient-based hair dye is a new market trend. Multitude benefits of such ingredients in hair dye is attracting newer customers in the market. The demerits of organic hair dyes are negligible in relative to synthetic hair dye.

Organic hair dye doesn’t penetrate hair cuticles, rather, it coats the external surface of the hair with dye substances. This is why organic hair dye doesn’t contribute towards hair damage, whereas, synthetic hair dye penetrates the hair cuticles up to some extent, leading to hair fall, breaking, and thinning.

How are key players attracting more customers?

Key players in the market are using multiple advertising media such as TV advertisements, digital marketing, social media campaigns, etc., in order to gain customer attention towards purchasing their products.

Majority of key players have been involved in frequent advertisements in shopping malls, television, and billboards, highlighting the product’s speciality and benefits, and relating it to the sentimental side of customers.

Most of these advertisements have famous celebrities as brand ambassadors who portray themselves as frequent users of these products and ask viewers to try it on for personal benefits. This is one of the ways how companies are attracting more customers.

Country-wise Analysis

Why is Germany a lucrative market for hair dye?

Germany is dominating the hair dye market from the consumption side. According to a survey done by the European Union, more than 10% of men and 60% of women color their hair annually in Germany.

This is due to fact that the country witnesses higher expenditure on hair care, cosmetics, and personal care, which is possible because of the presence of higher disposable income in the country.

How is the fashion industry in USA supporting market growth?

USA has been a major hub for the fashion and cosmetics industry, which also includes hair care and hair dye. The country has many hair dye manufacturers due to that fact that consumption of hair colour is massive among both, men and women. Modern lifestyle and high expenditures on such products have attracted major companies to the country.

The market is well established and highly fragmented in the U.S, and is expected to grow at a moderate rate during the forecast period with increasing consumption of hair care and hair dye products over the coming years.

How is Japan driving hair dye sales from the consumption side?

Japan is one of the major key countries after China in East Asia for hair dye. This is due to the fact that the aging population in Japan has been significantly increasing.

At present, more than 40% of the population is above 65 years of age, and is expected to increase to 60% by the end of 2050. This aging population is an issue in other terms, whereas, it’s a positive factor for the market, as consumption of hair dye is expected to increase substantially.

In the recently published report by Fact.MR, Japan has been highlighted as one of the key countries, and deep insights about pricing, current trends, and other factors have been provided.

Category-wise Insights

Why is liquid hair dye expected to witness notable demand?

Traditional powder hair dye will have higher market share initially due to economic feasibility, especially in a majority of low- and medium-income countries.

But now, the role has been reversed, and manufacturers have started providing crème-based hair color at lower costs and in small sachets. With liquid hair dye gaining major focus from the demand side, it will give added impetus to overall market growth over the forecast period.

Why are online sales of hair dye surging?

Online sales have seen a boom during the ongoing pandemic. Majority of salons and professional stores were closed, because of which, it has been difficult for customers to continue their regular hair care regimes.

The only option left was online purchase of these product for hair coloring at home. Thus, such a necessity has boosted the online sales channel share, which will continue to grow post pandemic as well.

What are the key challenges faced by hair dye manufacturers?

Manufacturers have been facing various issues related to hair dye ingredients. For instance, coal tar-based hair dye is totally banned in the European Union due to a suspicion on coal tar possessing cancer causing properties.

Whereas, in North America, this hair color can be sold provided it has a cautionary statement on the product indicating the presence of coal tar and to conduct a skin allergy test 12 hours before hair dying. Thus, such variable regulations across different regions are forcing manufacturers to use different ingredients accordingly.

Report Scope

Attribute	Details
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Market Analysis	US$ Bn for Value
Key Regions Covered	North America Latin America Europe East Asia South Asia & Oceania Middle East & Africa
Key Countries Covered	U.S. Canada Brazil Germany Italy China Japan India GCC Turkey
Key Segments Covered	Product Form Dye Color Buyer Sales Channel Region
Key Companies Profiled	L’Oreal Paris Kao Corporation Revlon Inc. Hygienic Research Institute Private Limited eSalon Wella Godrej Consumer Products Ltd. Umberto Giannini Hoyu Mandom Group Silkygirl Ben Nye Biolage Kama Ayurveda Pvt. Ltd. Khadi Natural Shahnaz Ayurvedics Bio Veda Action Research Co. Josh Wood Colour Jerome Russel Bblonde Knight & Wilson Intercosmetic Asia Pacific Sdn Bhd Indus Valley Pravana Others

Key Market Segments Covered in Report

• By Product

  • Permanent Hair Dye
  • Semi-permanent Hair Dye
  • Demi-permanent Hair Dye
  • Bleach-highlights Hair Dye
  • Temporary Hair Dye

• By Form

  • Powder
  • Liquid

• By Dye Color

  • Black
  • Brown
  • Burgundy
  • Red
  • Other Colors

• By Buyer

  • Individual Customers
  • Professional Beauty Salons

• By Sales Channel

  • Modern Trade
  • Departmental Stores
  • Specialty Stores
  • Online Stores
  • Other Sales Channels

• Region

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa