How L’Oreal Stands To Gain From The Growth Of The Global Hair Care Market

by Trefis Team
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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.

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.

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Have more questions about Estee Lauder and L’Oreal? See the links below.

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Estee Lauder

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