LONDON--(BUSINESS WIRE)--Technavio analysts forecast the global hair color market to reach USD 29.14 billion by 2019, growing at a CAGR of more than 9%, according to their latest report.
The research study covers the present scenario and growth prospects of the global hair color market for 2015-2019. To calculate the market size, the report considers the revenue generated from the sales of hair color products through retail channels and professional salons.
Technavio consumer and retail analysts highlight the following four factors that are contributing to the growth of the global hair color market:
- Increase in disposable income among middle class
- Growing number of fashion-conscious consumers
- Increase in male grooming
- Growth of organized retail
Increase in disposable income among middle class
Sales from the middle class for personal and beauty care products accounted for nearly half of the total revenue in the market. The hair color market has also seen similar revenue from the middle-class population. The increase in disposable income in the middle class is allowing them to spend more on personal grooming. Three billion people are projected to join the middle class over the next 20 years.
According to Brijesh Kumar Choubey, a lead research analyst at Technavio for cosmetics and toiletry, “The emerging middle class will be the major target audience for hair color product vendors. Also, the increasing middle class has created an opportunity for major players to expand their businesses across the globe.”
Growing number of fashion-conscious consumers
Consumers use hair color and dye not only to cover gray hair but also to make a style statement. Consumers' desire to look fashionable is thus driving the hair color market. L'Oréal, the leader in the hair color market, markets its products as "Beauty for All." The company has endorsed many celebrities and beauty experts (so-called brand ambassadors) for product promotion and advertising across different regions. L'Oréal has 35 international brand ambassadors: Jennifer Lopez, Beyoncé Knowles, Freida Pinto, Sonam Kapoor, Jane Fonda, Eva Longoria, Julianne Moore, Liya Kebede, Gong Li, and Hugh Laurie.
Increase in male grooming
The perception of men who use hair color has changed. Increased consciousness among men about beauty and grooming is driving the hair color market globally. Men use hair color not only to cover gray hair but also to have an attractive look. Male celebrity endorsement is one approach taken by hair color companies for product advertising. As a result, male consumers are motivated to use these products. L'Oréal's L'Oréal Paris Hair color for men has seen a 5.6% year on growth in 2014 compared to 2013, and this year on growth was 3.2% in 2013 compared to 2012. L'Oréal's famous male celebrity brand ambassadors include Ryan Reynolds and Hugh Laurie.
Growth of organized retail
The retail chain is the major distribution partner for every beauty and personal care manufacturer, as the majority of sales are from retail outlets. The current shift in the retail industry from a more traditional unorganized retail format to organized retail has accelerated the growth of the retail industry. Hair color products are kept in a separate section in retail stores. This segmentation of hair color products as an exclusive item for hair care creates prioritized impact of the product on the consumers.
“Walmart, one of the largest organized retail chains in the world, contributed 14% to Procter & Gamble's net revenue in 2014. This contribution also includes sales for Procter & Gamble's hair color brands Clairol and Wella Professionals,” says Brijesh.
Browse Related Reports:
- Global Hair Conditioner Market 2015-2019
- Global Professional Hair Care Market 2015-2019
- Hair Care Market in GCC 2015-2019
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Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
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