The Chinese haircare market is projected to register a CAGR of 4.5% during the forecast period (2022 - 2027).
Even though the economic magnitude of the COVID-19 pandemic on brands and retailers will be far greater than any recession, there are signs that the hair care industry may once again prove relatively resilient. The industry's 2020 February sales in China fell by 80 percent compared with 2019. In March, the year-on-year decline was 20 percent which is a rapid rebound under the circumstances. In various markets, consumers report they intend to spend less on beauty products in the near term (largely driven by declines in spending on color cosmetics).
In the medium term, the market is expected to be majorly driven by the increased consumer concerns about scalp health, mainly problems related to hair thinning, hair loss, dandruff, and sensitive scalp. Additionally, the region's extreme climatic conditions are harsh on hair, boosting the market growth.
Furthermore, the introduction of new hair care products to target specific consumer groups (females suffering from hair loss problems), along with increasing per capita spending of the consumers in China on personal care products, is gaining popularity, eventually resulting in the growth of the market. Also, the growing demand for organic/natural products and customized products for personal grooming has become one of the primary concerns for individuals. Among the organic hair care products, owing to their wide usage, shampoo and conditioner held a majority share in the global organic haircare market in 2019. However, the rising awareness regarding the potential side effects of hair care products is restraining market growth.
Haircare is gaining immense popularity among all consumer groups in the country. The primary reason for this popularity is directly related to the aggressive marketing campaigns mainly directed toward young consumers. Furthermore, advertisements promote that energy drinks ignite scalp health and enhance hair quality. For instance, as part of the promotional strategy, key players like Pantene, a P&G brand, partnered with Virgin V Festival North for campaignings, aimed to offer a VIP experience for key media and influencers to create a social media buzz for the Pantene brand. Also, Pantene partnered with one of the UK’s most popular festivals, which helped the brand to reach out to some of the UK’s most prestigious media outlets and social media influencers.
The market for conditioners has witnessed significant growth in recent years owing to the availability of specialized products catering to the varied needs of the entire demographic. Also, the market is highly competitive, with vendors competing based on product differentiation, portfolio, and pricing. It is making the key players spend more on research and development to launch innovative products in the market that can meet the customer requirements. In 2017, Henkel Beauty Care launched Schwarzkopf Extra Care Sun Repair Spray Conditioner in China. It has a high-performing formula with Monoi- Flower Extract and UVA/UVB filters, which repairs the hair from damage caused by sun and saltwater, and protects it from drying out. Also, consumers in the country prefer vitamin-infused hair care products, especially hair conditioners. Therefore, key players such as Suave, a Unilever brand, offer vitamin-infused Revitalizing Conditioner that contains Vitamin E, C, and B5 to boost strength and vibrancy.
The China haircare market is competitive and fragmented, owing to the presence of many regional and domestic players. Emphasis is given to mergers, expansions, acquisitions, partnerships, and new product developments as strategic approaches adopted by the leading companies to boost their brand presence among consumers. Key players dominating the market include L’Oréal, Procter & Gamble, Unilever, Beiersdorf AG, and Kao USA Inc. (Oribe Hair Care LLC).
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Even though the economic magnitude of the COVID-19 pandemic on brands and retailers will be far greater than any recession, there are signs that the hair care industry may once again prove relatively resilient. The industry's 2020 February sales in China fell by 80 percent compared with 2019. In March, the year-on-year decline was 20 percent which is a rapid rebound under the circumstances. In various markets, consumers report they intend to spend less on beauty products in the near term (largely driven by declines in spending on color cosmetics).
In the medium term, the market is expected to be majorly driven by the increased consumer concerns about scalp health, mainly problems related to hair thinning, hair loss, dandruff, and sensitive scalp. Additionally, the region's extreme climatic conditions are harsh on hair, boosting the market growth.
Furthermore, the introduction of new hair care products to target specific consumer groups (females suffering from hair loss problems), along with increasing per capita spending of the consumers in China on personal care products, is gaining popularity, eventually resulting in the growth of the market. Also, the growing demand for organic/natural products and customized products for personal grooming has become one of the primary concerns for individuals. Among the organic hair care products, owing to their wide usage, shampoo and conditioner held a majority share in the global organic haircare market in 2019. However, the rising awareness regarding the potential side effects of hair care products is restraining market growth.
Key Market Trends
Increasing Expenditure on Advertisement and Promotional Activities
Haircare is gaining immense popularity among all consumer groups in the country. The primary reason for this popularity is directly related to the aggressive marketing campaigns mainly directed toward young consumers. Furthermore, advertisements promote that energy drinks ignite scalp health and enhance hair quality. For instance, as part of the promotional strategy, key players like Pantene, a P&G brand, partnered with Virgin V Festival North for campaignings, aimed to offer a VIP experience for key media and influencers to create a social media buzz for the Pantene brand. Also, Pantene partnered with one of the UK’s most popular festivals, which helped the brand to reach out to some of the UK’s most prestigious media outlets and social media influencers.
Growing Demand for Conditioners in China
The market for conditioners has witnessed significant growth in recent years owing to the availability of specialized products catering to the varied needs of the entire demographic. Also, the market is highly competitive, with vendors competing based on product differentiation, portfolio, and pricing. It is making the key players spend more on research and development to launch innovative products in the market that can meet the customer requirements. In 2017, Henkel Beauty Care launched Schwarzkopf Extra Care Sun Repair Spray Conditioner in China. It has a high-performing formula with Monoi- Flower Extract and UVA/UVB filters, which repairs the hair from damage caused by sun and saltwater, and protects it from drying out. Also, consumers in the country prefer vitamin-infused hair care products, especially hair conditioners. Therefore, key players such as Suave, a Unilever brand, offer vitamin-infused Revitalizing Conditioner that contains Vitamin E, C, and B5 to boost strength and vibrancy.
Competitive Landscape
The China haircare market is competitive and fragmented, owing to the presence of many regional and domestic players. Emphasis is given to mergers, expansions, acquisitions, partnerships, and new product developments as strategic approaches adopted by the leading companies to boost their brand presence among consumers. Key players dominating the market include L’Oréal, Procter & Gamble, Unilever, Beiersdorf AG, and Kao USA Inc. (Oribe Hair Care LLC).
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
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Table of Contents
1 INTRODUCTION
4 MARKET DYNAMICS
5 MARKET SEGMENTATION
6 COMPETITIVE LANDSCAPE
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- L'Oreal Professionnel
- Avon products
- Avon products
- Procter & Gamble
- Unilever
- Beiersdorf AG
- Kao USA Inc. (Oribe Hair Care LLC)
- Kaijoe Technology Co. Ltd
- John Paul Mitchell Systems
- Drybar LLC
Methodology
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