Hair Color Market Growth Drivers and Forecast by 2028

[Research Report] The hair color market is expected to grow from US$ 23,762.28 million in 2022 to US$ 35,201.69 million by 2028; it is estimated to grow at a CAGR of 6.8% from 2022 to 2028.

The report highlights key factors driving the market and prominent players along with their developments in the market.

Market Insights and Analyst View:

Hair colors are hair dyes that are applied either for covering grey hair or for changing the natural color of hair. There are basically 3 types of hair colors: permanent, semi-permanent, and temporary. Permanent hair colors permanently change the natural hair color and usually give the best results. Hair colors are available in various color shades such as black, brown, and burgundy. Consumers are highly concerned about their appearance which is creating significant demand for personal grooming products. This factor is driving the hair color market. Moreover, the rising aging population is also one of the major factors driving the demand for hair color and dyes.

Growth Drivers and Challenges:

Rising demand for hair color from the aging population is driving the hair color market growth. According to the World Population Ageing Review of 2019, there are more than 703 million people aged 65 or over in the world. The world population is aging rapidly due to declining fertility rates and increasing longevity or life expectancy. The aging population is widely using hair color to cover their grey hair. This factor is significantly driving the demand for hair color. Further, due to lifestyle changes and nutritional deficiencies, there is a rising rate of premature greying. People are witnessing early greying of hair due to daily stress, poor dietary habits, smoking, and certain medical conditions. This factor is also expected to boost the demand for hair colors, driving the hair color market growth.

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Hair Color Market: Strategic Insights

Report Segmentation and Scope:

The “Global Hair Color Market” is segmented based on product type, type, distribution channel, and geography. Based on product type, the hair color market is segmented into permanent, semi-permanent, and temporary. Based on type, the hair color market is segmented into powder, cream, and others. Based on distribution channels, the hair color market is segmented into supermarkets and hypermarkets, specialty stores, online retail, and others. The hair color market based on geography is segmented into North America (US, Canada, and Mexico), Europe (Germany, France, Italy, UK, Russia, and Rest of Europe), Asia Pacific (Australia, China, Japan, India, South Korea, and Rest of Asia Pacific), Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America)

Segmental Analysis:

Based on distribution channels, the hair color market is segmented into supermarkets and hypermarkets, specialty stores, online retail, and others. The supermarkets and hypermarkets segment holds a significant share of the hair color market and the online retail segment is expected to register significant growth over the forecast period. Supermarkets and hypermarkets are large retail establishments that stock a variety of products of local as well as premium brands at affordable prices. Moreover, these stores have qualified staff that assist in finding products according to customer requirements. Additionally, these stores have separate sections of cosmetics and personal care products that help customers to shop conveniently and hassle-free. These factors are driving the sales of hair color products through supermarkets and hypermarkets.

Based on type, the hair color market is segmented into powder, cream, and others. in 2022, the powder segment held the largest market share. A large number of consumers prefer cream-based hair color due to their ease of application. Moreover, they contain moisturizing ingredients that make the hair soft and add a shine to the hair. These factors are significantly driving the segment growth.

Regional Analysis:

Based on geography, the hair color market is divided into five key regions: North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa. The global hair color market was dominated by Asia Pacific which accounted for US$ 7,741.75 Million in 2022. North America is a second major contributor holding more than 26% share in the global market. The cosmetic industry in the Asia Pacific is growing, with rising demand for premium products and an increase in the number of working women. Additionally, the aging population in the region is further contributing to the growth of the hair color market.  According to the World Health Organization (WHO), China has one of the fastest-growing aging populations in the world. The population of people over 60 years old in China is projected to reach 28% by 2040, due to longer life expectancy and declining fertility rates. Hence, the increasing demand for personal care coupled with the increasing number of working women and the aging population is expected to drive the hair color market growth across Asia Pacific.

Industry Developments and Future Opportunities:

Various initiatives taken by the key players operating in the hair color market are listed below:

• In 2022, The Arctic Fox launched a new hair color, Space Cowgirl, that is bright colors with green tones or peachy tones. This new product can be mixed with Aquamarine, Poseidon, Neon Moon, Frose, or Periwinkle, in distinct ration as provided by the company, to get different color shades to hair.
• In 2022, PZ Cussons announced the acquisition of Childs Farm, the market-leading brand in UK baby and child personal care with a 15% share of the category. Product lines include bath and shower, skincare, and haircare, and are all anchored in a natural proposition and suitable for sensitive skin.
• In 2022, L’Oréal S.A announced the launch of Colorsonic, designed for consumers, and Coloright technologies, designed for stylists. The company worked with 400 customers to develop Colorsonic products. The product contains a color cartridge (40 colors), a mixer (combines the color and develops for the customer), and a comb applicator. Moreover, the Coloright technology is focused on creating consistency and adding data insights in coloring process.

The regional trends and factors influencing the Hair Color Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses Hair Color Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Hair Color Market Report Scope

Hair Color Market Players Density: Understanding Its Impact on Business Dynamics

The Hair Color Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Covid-19 Impact:

The COVID-19 pandemic affected almost all industries in various countries. Lockdowns, travel restrictions, and business shutdowns in North America, Europe, Asia Pacific (APAC), South & Central America (SAM), and the Middle East & Africa (MEA) hampered the growth of several industries, including the consumer goods industry. The shutdown of manufacturing units disturbed global supply chains, manufacturing activities, delivery schedules, and essential and nonessential product sales. Various companies witnessed delays in product deliveries and a slump in sales of their products in 2020. Due to the pandemic-induced economic recession, consumers became more cautious and selective in their purchasing decisions. However, the pandemic caused temporary closures of beauty salons, which forced many consumers to do their own hair color at home. This increased the demand for hair colors across the residential sector. Also, as people were mandated to stay at home, they engaged in various DIY activities which positively impacted the hair color sales. However, as supermarkets, hypermarkets, shopping malls, and stores that sell non-essential products remained shut during the initial phase of the pandemic, people relied on e-commerce retail channels such as Amazon.com, eBay, and SnapDeal.

By the end of 2021, many countries were fully vaccinated, and governments announced relaxation in certain regulations including lockdowns and travel bans. Various stores including supermarkets, departmental stores, shopping malls, and mom-and-pop stores were permitted to reopen which also increased the sale of hair color products. All these factors positively influenced the hair color market growth.

Competitive Landscape and Key Companies:

Some of the prominent players operating in the global hair color market include Arctic Fox; Coty Inc.; Henkel AG and Co., KGAA; and Kao Singapore Pte. Ltd.; Revlon, Inc.; Hygienic Research Institute Pvt. Ltd; L’oréal S.A.; Wella Operations US LLC; Unilever PLC; and PZ Cussons Beauty LLP; among others. These companies are highly involved in merger and acquisition activities to expand their geographic footprints and enhance their expertise. Additionally, these companies are adopting innovative marketing strategies such as digital marketing, social media marketing, and innovative ad campaigns to enhance their brand image in the minds of potential consumers.