How L’Oreal Stands To Gain From The Growth Of The Global Hair Care Market
In a recent report by Transparency Market Research, it has been forecast that the global hair care market will continue growing at a steady pace. The primary driver for the market is the demand for luxuriant, healthy, and strong hair by consumers across the globe. The market size for hair care products will also expand with the penetration of big and small companies into the developed and developing countries, and with the constant research and innovation initiatives by the more established players which ensures better quality products at more affordable prices. The global hair care market is estimated to be around $81 billion in 2015 and it is expected to reach ~$105 billion by 2024, reflecting a compound annual growth rate of around 3% during the period. The beauty market leader L’Oreal, with its various initiatives to reap the benefits of the current trends, seems to be well poised to expand its global market share in the hair care market.
Growing Segments
In 2015, the shampoo division enjoyed the largest share of the hair care market at 30.9%. The main players included Procter & Gamble, L’Oréal, and Unilever plc. The hair styling products such as mousse, hair sprays, hair gels, and serums, are increasingly gaining popularity and are expected to grow at a CAGR of 4.4% during the said period.
- Is There More Room For Growth In L’Oreal Stock?
- After Underperforming The Markets, Can L’Oreal Stock Rally?
- L’Oreal Stock Poised For Bounce Back After Rough Month?
- After Dismal Performance Last Month, L’Oreal Stock Looks Set To Rebound
- L’Oreal Stock Looks Set For A Rally On The Back Of Strong Earnings Growth
- Forecast Of The Day: L’Oreal Makeup Revenues
Regional Requirements
Regions like APAC and Africa are said to have demands for customized hair care products that suit the specific hair care needs of the people in those regions. Companies like L’Oreal and Estee Lauder have strong R&D teams in these geographies in order to cater to the diverse hair care requirements. In July, L’Oreal opened a new Research and Innovation center in Johannesburg in South Africa. Last year, L’Oreal had partnered with CFAO to strengthen and expand its distribution channel across French speaking West Africa and in the Ivory Coast.
Male Consumers
Like all beauty categories, hair care has also seen an increased demand for the male grooming products. Along with hair color, the demand for products that give growth to new hair in balding scalps will be of major interest to men. In this context, L’Oreal in collaboration with the biotechnology firm Poietis is about to make a breakthrough. The company aims to develop a kit that will let users grow their own hair with the help of a special bioprinter that will create living hair follicles. If this becomes a success, it can safely be assumed that L’Oreal’s market share in global hair care might increase significantly.
According to our estimates, L’Oreal currently has around 20% share of the global hair care market and we expect that to reach over 22% by the end of our forecast period. However, along with the rise in hair care market demand and L’Oreal’s innovations and expansions, the share can significantly increase in the future.
Editor’s Note: We care deeply about your inputs, and want to ensure our content is increasingly more useful to you. Please let us know what/why you liked or disliked in this article, and importantly, alternative analyses you want to see. Drop us a line at content@trefis.com
Have more questions about Estee Lauder and L’Oreal? See the links below.
- What Is Estee Lauder’s Revenue And EBITDA Breakdown?
- What Is Estee Lauder’s Fundamental Value On The Basis Of Its Forecasted 2015 Results?
- How Has Estee Lauder’s Revenue And EBITDA Composition Changed Over 2012-2016E?
- What Is Estee Lauder’s Fundamental Value Based On 2016 Estimated Numbers?
- What Drove Estee Lauder’s Revenue And EBITDA Growth Over The Last Five Years?
- Where Can Estee Lauder’s Growth Come From In The Next 5 Years?
- Estee Lauder Q3 FY16 Pre-Earnings Report
- How Did The Top Two Beauty Companies Perform In The Hair Care Segment Over The Last Five Years?
- How Does Estee Lauder’s Financial State Currently Look?
- Who Relies More On Debt: L’Oreal Or Estee Lauder?
- What Are Some Of The Trends Expected To Drive The Future Of The Beauty Market?
- Estee Lauder Braved Numerous Challenges To Deliver Growth Above That Of The Prestige Beauty Market
- What Is L’Oreal’s Fundamental Value On The Basis Of Its Forecasted 2015 Results?
- How Has L’Oreal’s Revenue And EBITDA Composition Changed Over 2012-2016E?
- L’Oreal: Year 2015 In Review
- What Is L’Oreal’s Fundamental Value Based On 2016 Estimated Numbers?
- L’Oreal’s Q1 2016 Earnings Results
- How Did The Top Two Beauty Companies Perform In The Fragrance Segment Over The Last Five Years?
- How Can L’Oreal’s Digital Investments Help The Company?
- Who Relies More On Debt: L’Oreal Or Estee Lauder?
- What Are Some Of The Trends Expected To Drive The Future Of The Beauty Market?
- Why Might L’Oréal Be Acquiring Luxury Perfume Brand Atelier Cologne?
- How Is L’Oreal’s Revenue Composition Expected To Trend?
- How Is L’Oreal’s Skincare Business Expected To Trend?
- Why Does L’Oreal Want To Acquire The Skincare Brand, Société des Thermes de Saint-Gervais-les-Bains?
- Here’s Why L’Oreal’s Digital Progress Places It Way Ahead Of Its Peers
- L’Oreal Posted A Robust Q3 2016 Indicating That The Second Half Of The Year Might Emerge Stronger Than The First Half
See More at Trefis | View Interactive Institutional Research (Powered by Trefis)