Hair Care Market Size

Hair Care Market Growth Projections and Opportunities

Hair care products often contain chemicals like sodium lauryl sulfate, diethanolamine, and peroxide. These chemicals can have potential health risks, from causing itching to more serious issues like asthma and cancer. Due to these concerns, there is a growing demand for Ayurvedic products in the hair care market. Many companies are now incorporating natural ingredients in their hair care products to address these health-related worries. New entrants, such as Patanjali Ayurveda, have entered the market with a focus on Ayurvedic shampoos, hair oils, and other products. The Indian Brand Equity Foundation reported that Ayurvedic hair oil penetration was around 8.0% in 2017.

Looking at the global scenario, the GDP experienced fluctuations between 2014 and 2016, but by the end of 2018, global growth is expected to increase by 3.6%. This positive economic trend is reflected in personal care spending, especially in regions like North America. The United States Census Bureau noted a 2.4% increase in median household income from 2015 to 2016, reaching USD 57,617. Europe also witnessed growth in disposable household income, with the UK's median disposable household income rising by 2.3% to USD 33,787 in the fiscal year 2017, according to the Office for National Statistics.

The Asia Pacific region experienced an expansion in cosmetic spending in 2016, driven by an increase in regional disposable income and changing lifestyles. India, for instance, is expected to see growth in rural per capita disposable income, reaching USD 631 by 2020 with a CAGR of 4.4%, according to the Indian Brand Equity Foundation. In the Middle East & Africa, rapid growth in cosmetic expenditure is anticipated due to the growing penetration of the cosmetic industry and rising per capita income in the region.

In summary, the hair care market is witnessing a shift towards Ayurvedic products in response to health concerns related to chemical ingredients. The positive economic trends globally, especially in regions like North America, Europe, Asia Pacific, and the Middle East & Africa, are contributing to increased spending on personal care products, including hair care items. As disposable incomes rise and lifestyles change, consumers are showing a preference for natural and Ayurvedic options in the hair care segment. This evolving consumer behavior is shaping the market and encouraging both existing and new players to adapt to these changing preferences.