Shampoo Market Size, Share & COVID-19 Impact Analysis, By Product Type (Medicated/Special-purpose and Non-medicated/Regular), By Form (Liquid, Solid, and Others), By Application (Household and Commercial), By Distribution Channel (Hypermarkets/Supermarkets, Convenience Stores, Online Channels, and Others), and Regional Forecast, 2023-2030

The global shampoo market size was valued at USD 32.78 billion in 2022 and is projected to grow from USD 34.46 billion in 2023 to USD 50.37 billion by 2030, exhibiting a CAGR of 5.57% during the forecast period.

Shampoo is a hair care product typically in the form of a viscous liquid usually used for cleaning hair. Healthy, shiny, and stronger hair are a prime factor among teenage girls, driving the hair care products market globally. However, grooming and longer hair lengths of men are the upcoming growth trends shaping the future of these products. Park Avenue’s Beer hair cleansers, Wow’s apple cider vinegar, and Alpecin’s caffeine hair cleaners are a few of the eye-catching products witnessing burgeoning demand in the retail market. Additionally, inclination toward hair coloring has resulted in vast opportunities for players to develop hair cleaning products that can retain the hair color, such as the advent of purple hair wash products designed specifically for blonde hair type is likely to bode well for the market.  

COVID-19 IMPACT 

The shutdown of Salons Negatively Impacted Hair Care Products Market amid COVID-19

In the unprecedented pandemic globally, the personal care industry has witnessed heightened demand for hygiene products, wherein other products under the category such as hair care, hair color, and hair styling products were hit negatively.

Although seen as a good hygienic practice, hair cleaning is not considered a basic necessity. And, therefore, the demand for hair wash products saw a declining trend during the pandemic as the infection had emerged initially; stockpiling of daily required goods resulted in the greater purchase of these products through retail stores. However, the closures of salons, spas, and other hospitality facilities adversely affected the product demand.

For instance, Henkel and Unilever observed a decrease in hair care consumption in the first quarter of 2020 when the coronavirus had started to transmit globally. As a result, Henkel recorded a decline in year-on-year growth for hair care products, whereas the company’s sales under the hair salon business were also down by a double-digit percentage. In addition, Procter & Gamble recorded a double-digit volume decrease in the Chinese hair care retail market due to temporary disruptions from January to March 2020. However, product consumption was expected to witness a growing trend once the global lockdown was completely lifted.

LATEST TRENDS

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Oil Infused and Dry Product Variants are Trending in the Market

Products with dual-degree effects are often considered value-for-money solutions, as one single product can provide varied benefits that increase its cost-effectiveness. For instance, Aussie, a brand of Procter & Gamble, offers ‘Total Miracle 7n1 Shampoo’, claiming to provide seven different beneficial solutions, including shine, strength, smoothness, softness, split end protection, moisture, and humidity control.

Moreover, oil-infused hair cleansers provide moisturizing effects along with cleansing properties and therefore are gaining popularity. Therefore, major players are using various nourishing oils in products to serve their customers with value-added products. For instance, Dark & Lovely, a brand of L’Oreal, offers ‘Sulphate Free Shampoil’ which is prepared with Moringa Oleifera Seed Oil, whereas, Unilever’s TIGI brand offers an oil-infused hair cleanser under ‘Bed Head’ product range that is infused with almond oil and coconut oil which is specifically made for colored hair.

Similarly, hair cleansers in dried form are on the rise due to the cleaning and styling effects provided by the product simultaneously. For instance, Redken’s ‘Dry Shampoo Paste 05’ serves the purpose of oil absorption, impurity cleaning, adding a texturizing effect to hair, and reducing hair fall.

Therefore, 2-in-1 products offering washing and conditioning properties along with oil-infused and dry product variants are anticipated to gain traction in the near future.

DRIVING FACTORS

Wide Product Availability to Accelerate Market Growth

Problems ranging from hair thinning, sebum secretions, and severe hair loss have been given a fair solution by hair care products companies. Several products are available in the marketplace to address particular hair-related issues, including different hair cleansers for oily hair and dry hair, those for curly type, and volumizing products.

In 2019, the Journal of ‘Drug Invention Today’ published a questionnaire-based study, general awareness about seborrheic dermatitis/dandruff among dental students, in which it was evidenced that more than 65% of survey respondents experience dandruff problems, wherein 75% of them stated that the cause of dandruff was the change in hormonal levels and stress. In addition, the majority of participants use an anti-dandruff cleanser to combat the issue.

Several factors, including changes in climatic conditions, work type, eating habits, and others, are responsible for the degradation of the scalp's health. Therefore, rising hair-related issues among all the age groups to provide required hair nourishment are likely to drive market growth during the forecasted period.

Focus on Product Customization to Foster Market Growth

Hair studios offering personalized products are expected to become a trendsetter in the market. For instance, PerSe Beauty Inc. announced its product under the brand ‘Prose’ in January 2018, which offers conditioners and other items according to the problems faced by a particular individual.

Several brands and startups have similar functions to offer customized hair care solutions, such as Function Inc., Pure & Mine, Inc., Gemma Labs Inc., Bare Anatomy, and others globally. However, these brands' product formulation is done separately for every customer as per their specific needs.

Furthermore, key players operating in the market are experimenting with novel ingredients that can add value to their products. Biotin, probiotics, and fruit vitamins are being explored owing to the burgeoning demand witnessed for proteins and vitamin-based products that provide numerous benefits. For instance, Nanogen’s 7-IN-1 Shampoo is formulated with prebiotic beta-glucan that provides a balancing effect on the natural micro-biome present on the scalp.

Therefore, personalization and the introduction of innovative products by key players are likely to augment the shampoo market growth.

RESTRAINING FACTORS

Counterfeit Products and Availability of Alternatives to Decline Sales

Hair cleansers with toxic ingredients claiming to have desired effects that are offered at lower cost have led to several adverse effects on the scalp and hair growth. Additionally, DIY (Do-It-Yourself) product kits and rising awareness about home remedies such as the use of amla (Indian gooseberry), reetha (Indian soapberry), egg yolk, and curd for hair cleansing are likely to limit the market growth. Moreover, surgical options offering permanent solutions to hair loss, dandruff, and oil secretion problems may lead to declining sales of respective hair wash products. Furthermore, the rise in awareness about the harmful effects of chemicals in hair care products is further restricting the growth of the market.

SEGMENTATION

By Product Type Analysis

Non-medicated Segment to Hold a Major Share Due to its Regular Usage by People

The market is segmented into medicated/special-purpose and non-medicated/regular based on product type.

The non-medicated segment is anticipated to hold a major market share as they have wider applications among the mass population. Cuticle nutrition, scalp balance, smoothening, and detoxifying properties are likely to gain more popularity as they offer extra benefits along with cleansing solutions.

Medicated products are specially designed for therapeutic effects over certain diseases, such as fungal infections, targeted only toward a narrow population group. However, special-purpose products such as hair cleansers for sports personnel or swimmers with additional benefits such as incorporating ingredients that easily remove chlorine, salts, or trace minerals from the scalp are likely to grow rapidly due to their increasing utility.

By Form Analysis

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Liquid Segment to Dominate Backed by its Convenience in Applications

The market is segmented as solid, liquid, and others, such as foam and paste, based on form.

The convenience offered by the liquid product is the major factor propelling its demand, wherein the liquid product can be easily applied and spread over wet hair. In addition, pump dispensers are also developed by manufacturers that aid in product usage and thereby support segment growth during the forecast period.

However, in the solid segment, powders, bars, and cube-based hair cleansers have emerged as suitable options to carry along while traveling. Since they are less messy and do not spill over, the solid form becomes more appealing to customers. For instance, in 2019, OWA Haircare launched powdered hair cleaners, which turn into foam when it comes in contact with water. Therefore, companies are introducing novel product formats in the market owing to changing consumer preferences.

By Application Analysis

The dominance of Hair Wash Products is Driven by Rise in Household Usage

Based on application, the market is segmented into household and commercial.

The household segment is expected to dominate the market due to the use of hair wash products widely as personal care products by a broad population. Moreover, increasing product usage for kids and babies at home is further fueling segment growth.

However, expanding the adoption of salon and spa services for enhanced grooming needs is likely to promote the growth of the commercial segment.

By Distribution Channel Analysis

Appeal of Hypermarket/Supermarket for Personal Shopping to Hold Dominant Share

Distribution channels include hypermarkets/supermarkets, convenience stores, online channels, and others.

Hypermarkets/supermarkets allow the customer to physically compare different brands for their ingredients and packaging. Additionally, these stores also offer varied benefits, including bulk purchase discounts, annual membership packages, and gift vouchers, making it a preferred choice for shopping for personal care items.

Easier consumers’ accessibility to the brick & mortar stores has made the convenience stores segment exhibit a considerable market share. Additionally, the regular provision of cost-effective groceries by such stores is further fueling the segmental growth. However, the online channels segment is expected to grow faster due to increasing internet penetration. Moreover, COVID-19 has positively impacted online channels due to the closures of retail stores, wherein the online shopping trend is likely to continue in the near future.

REGIONAL INSIGHTS

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The market size in Asia Pacific stood at USD 11.71 billion in 2022. Asia Pacific dominates the shampoo market share due to a growing number of millennials and Gen X in the countries coupled with increasing spending on hair care products. According to the Japan Cosmetic Industry Association, hair care products accounted for about 22.7% of total shipments in cosmetics in Japan as of 2018. In addition, products that provide solutions for hair graying are in high demand in the region as a majority of the Asian population has black-colored hair. Moreover, players are targeting the rural population with the introduction of low-cost sachets to increase market penetration.

The North America market is majorly driven by a rising number of salons, spas, and hair studios in the U.S. and Canada. For instance, according to the article on the U.S. Spa Industry published in January 2020, the total number of spa visits has increased in the U.S. to about 190 million in 2018 from 187 million in 2017. Additionally, the growing demand for a premium range of products will add impetus to the market in the region.

The market in Europe is expected to hold a significant share owing to rising concerns, including scalp damage, frizzy hair, and split ends. According to U.K. survey results reported in May 2019 by NetDoctor, a part of the Hearst U.K. wellbeing network, about 82% of survey respondents having hair loss issues stated to experience hair thinning problems as well, which was attributed to hereditary conditions, stress, age-related issues, and other medical reasons. Moreover, hair coloring trends in the region will lead to greater consumption of color-friendly hair wash products.

Although they hold a lower market share, South America & the Middle East & Africa are growing rapidly due to urbanization and lifestyle changes in countries such as Brazil, South Africa, and Saudi Arabia.

KEY INDUSTRY PLAYERS

Key Players Focus on New Product Development to Strengthen their Positions  

The market is characterized by the presence of prominent players as well as local companies. A fierce competition is witnessed as a plethora of established brands is available, including PANTENE (Procter & Gamble), Suave, Dove (Unilever), Garnier, Redken, and Kiehl’s (L’Oreal), among others. Key players are therefore making strong efforts to maintain their market share globally. 

For instance, Unilever’s TRESemme brand is marketed as a ‘hair care brand that gives salon-style effect’ to attract more consumers. However, the company also emphasizes making their products and processes greener. For instance, in 2019, Unilever introduced shampoo refill stations at Walmart stores in Mexico that enabled customers to reuse empty used aluminum bottles by refilling them at an in-store refill station and thereby minimizing plastic usage and wastage. In addition, the company launched the same refill station in Indonesian stores in March 2020.

Additionally, herbal shampoo, sulfate-free, silicone-free, zero-waste, and organic hair wash products are gaining momentum in the market. Therefore, companies are increasingly focusing on these aspects to strengthen their consumer base.   

LIST OF KEY COMPANIES PROFILED:

• L’Oreal S.A. (France)


• Unilever (U.K.)


• Procter & Gamble Co. (U.S.)


• Henkel AG & Co. KG aA (Germany)


• Johnson & Johnson (U.S.)


• Coty Inc. (U.S.)


• Estée Lauder Co. Inc. (U.S.)


• Kao Corporation (Japan)


• Beiersdorf AG (Germany)


• Shiseido Co. Ltd. (Japan)

KEY INDUSTRY DEVELOPMENTS:

• March 2023 - Rein introduced a stylish anti-dandruff shampoo and conditioner to strengthen hair and make hair dandruff free. The launch will help the company in increasing its product line and revenue of the company.


• May 2022 - Cholayil Private Limited introduced a new hair care product, Total Care Shampoo, under the flagship brand of Medimix. Medimix Total Care Shampoo contains natural herbs and other essential ingredients such as rosemary oil, neem, datura, tea tree oil, wheat protein, white ginger, liquorice, bakuchi, and apple cider vinegar.


• March 2022 - Unilever introduced its 'Beautiful Hair & Scalp' range of anti-dandruff conditioners and hair wash products to Walmart. The collection includes products for various hair needs, including vibrant hair color, curly hair, damaged or weak hair, and detox.


• March 2021 - Dabur India launched a more premium variant of its Vatika shampoo to tap the demand for urban shoppers. The new products are made of various ingredients such as coconut milk extract, Moroccan argan oil, red onion black seed oil, and apple cider vinegar.


• January 2020 – Garnier Fructis, a brand of L’Oreal, launched ‘Treat Shampoo & Conditioner’ products that are vegan and formulated with 98% naturally derived ingredients.

REPORT COVERAGE

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The market research report provides a detailed analysis of the market and focuses on key aspects such as competitive landscape, distribution channels, and leading product types. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market in recent years.

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