Shampoo Market Size, Share & COVID-19 Impact Analysis, By Product Type (Medicated and Non-medicated), Form (Liquid, Solid, and Others), Application (Household and Commercial), Distribution Channel, and Regional Forecast, 2020-2027

The global shampoo market size was valued at USD 29.38 billion in 2019 and is projected to reach USD 37.92 billion by 2027, exhibiting a CAGR of 3.4% during the forecast period.

This report covers COVID-19 impact analysis on Shampoo Market

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Healthy, shiny, and stronger hairs are a prime factor among the women population which has driven the hair care products market globally. However, grooming and longer hair lengths of men are the upcoming trends that are shaping the future of these products. Park Avenue’s Beer shampoo, Wow’s apple cider vinegar, and Alpecin’s caffeine hair cleaners are few of the eye-catching products witnessing burgeoning demand in the retail market. Additionally, inclination towards hair coloring has resulted in wide opportunities for players to develop hair cleaning products that can retain the hair color such as the advent of purple hair wash products developed specifically for blonde hair type is likely to bode well for the market.  

Shutting of Salons to Negatively Impact Hair Care Products Market amid COVID-19

In times of unexpected viral infection spread across the globe, the personal care industry has seen heightened demand for hygiene products, wherein, other products under the category such as hair care, hair color, and hair styling products have been hit negatively.

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

For instance, Henkel and Unilever observed a decrease in shampoo consumption in the first quarter of 2020 when the coronavirus has just started to transmit worldwide. Henkel recorded a decrease in a year on year growth for hair care products, whereas the company’s sales under hair saloon business were also down by double-digit percentage. Procter & Gamble recorded a double-digit volume decreases in the Chinese hair care retail market due to temporary disruptions in January to March 2020. However, product consumption is expected to witness a growing trend once the lockdown is completely lifted all over the world.

LATEST TRENDS

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Oil Infused and Dry Product Variants are Trending in Market

Products with dual degree effects are often considered as a value for money solutions as the 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-shampoos provide moisturizing effects along with cleansing properties and therefore are gaining popularity. Players are using a variety of 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, Unilver’s TIGI brand offers oil infused hair cleanser under ‘Bed Head’ product range that is infused with almond oil and coconut oil which is specifically made for colored hairs.

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

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

In 2019, 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. The majority of participants use an anti-dandruff shampoo to combat the issue.

Several factors including changes in climatic conditions, work type, eating habits, and others are responsible for the degradation of the health of the scalp. Therefore, rising hair related issues among all the age groups are likely to push the demand for hair wash products that can provide nourishment and control the scalp damage.

Focus on Product Customization to Foster Demand

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

Several brands and startups are coming up with similar functioning to offer customized solutions such as Function Inc., Pure & Mine, Inc., Gemma Labs Inc., Bare Anatomy, and others globally, wherein product formulation is done separately for every customer as per their specific needs.

Additionally, key players operating in the market are experimenting with novel ingredients that can add value to their products. Biotin, probiotics, fruit vitamins are being explored owing to 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 inclusion of unique formulations are likely to augment product demand.

RESTRAINING FACTORS

Counterfeit Products and Availability of Alternatives to Decline Product Sales

Hair cleansers with toxic ingredients claiming to have desired effects that are offered at lower cost have led to several adverse effects on 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 is 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.

SEGMENTATION

By Product Type Analysis

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Non-Medicated Segment to Hold a Major Share Due to its Regular Usage Ability

Based on the product type, the market is segmented as medicated/special purpose and non-medicated/regular use products. Medicated products are specially designed for therapeutic effects over certain diseases such as fungal infections which are targeted only towards a narrow population group. However, special-purpose products such as hair cleansers for sports personnel or swimmers with additional benefits such as the incorporation of ingredients that easily removes chlorine, salts or trace minerals from the scalp are likely to grow rapidly owing to its increasing utility.

Non-medicated products are anticipated to hold major shampoo 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.

By Form Analysis

Liquid Segment to Dominate Due to its Convenience in Applications

Based on the form, the market is segmented as solid, liquid, and others such as foam and paste. 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. Pump dispensers are also developed by manufacturers that aid in product usage and thereby supporting segment growth during the forecast period.

However, powders, bars, and cube-based hair cleansers which make it a suitable option to carry along while traveling as they are less messy and do not spill over being in solid form are becoming more appealing to customers. For instance, in 2019, OWA Haircare launched powdered shampoo which turns into foam when it comes in contact with water. Therefore, companies are introducing novel waterless product formats in the market owing to changing consumer preferences.

By Application Analysis

Commercial Segment to Grow Rapidly owing to Escalating Visits to Salons and Spas

Based on applications, the market segments into household and commercial. The household segment is expected to dominate the market owing to the use of hair wash products widely as a personal care product by a broad range of the 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

Hypermarket/Supermarket segment to hold Dominant Position during Forecast Period

Distribution channels include hypermarket/supermarket, convenience stores, online channels, and others. Hypermarkets/ supermarkets allow the customer to physically compare different brands for their ingredients, as well as packaging. Additionally, these stores also offer varied benefits including bulk purchase discounts, annual membership package, along with gift vouchers which make it a preferred choice for shopping personal care items. However, e-commerce is expected to grow at a faster rate owing to growing internet penetration. Moreover, COVID-19 has positively impacted online channels due to closures of retail stores, wherein the online shopping trend is likely to continue in the near future.

REGIONAL INSIGHTS

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North American 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 by Spas of America, the total number of spa visits has been increased in the U.S. to about 190 million in 2018 from 187 million in 2017. Additionally, the growing usage of a premium range of products will add impetus to the market in the region.

The market in Europe is expected to hold significant share owing to rising concerns including scalp damage, frizzy hairs, and split ends. According to U.K. survey results reported in May 2019 by NetDoctor, a part of the Hearst UK well-being 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.

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The market size in Asia Pacific stood at USD 10.20 billion in 2019. The dominance of this region is attributed to a growing number of millennials as well as 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. Products that give solutions over hair greying are on 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 sachet to increase market penetration.

South America & the Middle East & Africa, although they hold lower market share, are growing at a rapid rate owing to urbanization and lifestyle changes in countries such as Brazil, South Africa, and Saudi Arabia.

KEY INDUSTRY PLAYERS

New Product Development to Position the Players Higher in Ranking

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, and Dove (Unilever), and Garnier, Redken, and Kiehl’s (L’Oreal) among others. Key players are therefore taking strong efforts to maintain their market share globally. 

For instance, Unilever’s TRESemme brand is marketed as a ‘shampoo that gives salon-style effect’ to attract more consumers, wherein, on the other hand, the company is also emphasizing on making their products and processes greener. For instance, in 2019, Unilever introduced shampoo refill stations at Walmart stores in Mexico that enabled the customers to reuse the empty used aluminum bottles by refilling it at an in-store refill station and thereby minimize plastics usage and wastage. The company launched the same refill station in Indonesian stores in March 2020.

Additionally, herbal, organic products, sulfate-free, silicone-free, and Zero-Waste products are gaining momentum in the market and therefore companies are increasingly focusing on these aspects to strengthen their consumer base.

LIST OF KEY COMPANIES PROFILED:

• L’Oreal S.A. (Paris, France)


• Unilever (London, U.K.)


• Shiseido Co. Ltd. (Tokyo, Japan)


• Procter & Gamble Co. (Ohio, U.S.)


• Henkel AG & Co. KG aA (Düsseldorf, Germany)


• Johnson & Johnson (New Jersey, U.S.)


• Coty Inc. (New York, U.S.)


• Estée Lauder Co. Inc. (New York, U.S.)


• Kao Corporation (Tokyo, Japan)


• Beiserdorf AG (Hamburg, Germany)

KEY INDUSTRY DEVELOPMENTS:

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


• October 2018 – L'Oréal acquired Logocos Naturkosmetik AG, a beauty products company offering hair wash products under SANTE and LOGONA brand in liquid as well as bar form.  The bottle packaging is made up of 100% rPET wherein products’ ingredients are organic and vegan.

REPORT COVERAGE

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The shampoo 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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