Luxury Hair Care Market

• Rising consumer disposable income is driving the market growth

The market for luxury hair care is expected to develop over the next years as a result of growing personal disposable income. An individual's disposable income is the amount of money left over after taxes and other mandatory deductions, which they may utilize for personal spending and savings. A portion of consumers' discretionary income is allocated towards high-end hair care products due to their appreciation of superior grooming items and self-indulgence.

For instance, the US Department of Commerce's Bureau of Economic Analysis stated that in October 2023, personal income climbed by $77.8 billion in September 2023, a 0.3% monthly gain from August 2023. This US government institution offers official data on the macroeconomy and industry. Thus, rising disposable personal income is fueling the market CAGR for luxury hair care.

The main chemical elements in traditional hair care products include silicone, different forms of alcohol, sodium lauryl sulfate (SLS), and preservatives like paraben. While these chemicals can instantly style and shine hair, frequent usage and exposure can also lead to brittleness, health problems, or irritation. Younger customers avoid items that include chemicals since they are aware of these facts. They carefully choose natural components that offer long-term advantages and situation-specific treatments. One of the main markets for natural luxury hair care products is the millennial generation.

An increasing knowledge of the benefits of chemical-free goods led over 56% of millennial and Gen X customers worldwide to actively choose natural beauty and grooming products in 2017, according to the Asia Cosmetics study. Furthermore, more than 40% of the change in customer purchase behavior was attributable to the natural ingredients listed on the box. A shift in consumer attitudes toward cosmetic and personal care products made with natural ingredients is expected to drive demand for luxury hair care products. Thus, driving the luxury hair care market revenue.

The Global Luxury Hair Care Market Industry is experiencing growth driven by increasing disposable incomes among consumers. As individuals have more financial freedom, they are more inclined to invest in premium hair care products. This trend is particularly evident in emerging economies, where a burgeoning middle class is seeking high-quality hair care solutions. The market is projected to reach 23.4 USD Billion in 2024, reflecting this shift in consumer behavior. The willingness to spend on luxury hair care products indicates a growing appreciation for personal grooming and self-care, which is likely to continue influencing market dynamics.

There is a notable increase in consumer awareness regarding hair health and the benefits of using luxury hair care products. The Global Luxury Hair Care Market Industry is benefiting from this trend as consumers seek products that promote hair vitality and overall well-being. This awareness is often fueled by social media influencers and beauty experts who advocate for high-quality ingredients and formulations. As a result, the demand for luxury hair care products that offer restorative and nourishing properties is on the rise. This trend is expected to contribute to the market's growth trajectory, with projections indicating a market value of 52.9 USD Billion by 2035.

Innovation plays a crucial role in the Global Luxury Hair Care Market Industry, as brands continuously develop advanced formulations to meet evolving consumer needs. The introduction of products that incorporate cutting-edge technology, such as personalized hair care solutions and formulations enriched with rare ingredients, is gaining traction. This focus on innovation is likely to drive market growth, as consumers are drawn to unique offerings that promise enhanced performance. The anticipated compound annual growth rate of 7.69% from 2025 to 2035 underscores the importance of innovation in sustaining market momentum and attracting discerning consumers.

Sustainability is becoming a pivotal factor in consumer purchasing decisions within the Global Luxury Hair Care Market Industry. As environmental concerns grow, consumers are increasingly seeking eco-friendly and sustainable hair care options. Brands that prioritize natural ingredients, recyclable packaging, and ethical sourcing are likely to attract a more conscientious consumer base. This shift towards sustainability not only aligns with global environmental goals but also enhances brand reputation. Companies that successfully integrate sustainable practices into their product offerings may experience a competitive advantage, potentially leading to increased market share in the luxury segment.

The impact of social media and celebrity endorsements on the Global Luxury Hair Care Market Industry cannot be overstated. Influencers and celebrities often showcase premium hair care products, creating a perception of desirability and exclusivity. This marketing strategy has proven effective in attracting consumers who aspire to emulate the looks of their favorite personalities. The visual nature of platforms like Instagram and TikTok allows for engaging content that highlights the efficacy of luxury hair care products. Consequently, this trend is likely to drive sales and brand loyalty, further solidifying the market's position in the coming years.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American luxury hair care market area will dominate this market. Personal grooming and self-care habits are becoming more and more important to North American consumers. The region's comparatively high levels of disposable income encourage consumers to spend more on high-end and luxury goods. North American customers now have simple access to a large selection of luxury hair care products because of the expansion of e-commerce platforms and direct-to-consumer business methods.

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: LUXURY HAIR CARE MARKET SHARE BY REGION 2023 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe luxury hair care market accounts for the second-largest market share. The expansion of this market is ascribed to the existence of sizable international corporations that concentrate their efforts on offering superior hair care goods, such as shampoo, styling products, conditioner, and color, in this area. Further, the German luxury hair care market held the largest market share, and the UK luxury hair care market was the fastest growing market in the European region.

The Asia-Pacific Luxury Hair Care Market is expected to grow at the fastest CAGR from 2024 to 2032 because of the growing demand for luxury hair care products in this area, as well as the expansion of e-commerce businesses and the penetration of the internet. The growing middle-class population in the area is also a major factor in the demand for upscale hair care products. Moreover, China’s luxury hair care market held the largest market share, and the Indian luxury hair care market was the fastest growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the luxury hair care market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the luxury hair care industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the luxury hair care industry to benefit clients and increase the market sector. In recent years, the luxury hair care industry has offered some of the most significant advantages to the salon industry. Major players in the luxury hair care market are attempting to increase market demand by investing in research and development operations includes PHILIP KINGSLEY PRODUCTS LTD., L’Oréal Groupe, KEVIN.MURPHY, SEVEN, LLC, Alcora Corporation, Kao Corporation, EstéeLauder Companies, Inc., KOSÉ Corporation, Jose Eber, and RAHUA.

KOSE Corp (KOSE) is a company that produces and sells beauty products and cosmetics. Skincare products, lipsticks, shampoos, hair conditioners, moisturizers and toners, soaps, powders for face washing, anti-aging and anti-whitening liquids and lotions, cosmetic tools, and beauty supplements are all part of the company's product line. It sells these goods under the brands Decorate, Jill Stuart, Infinity, Predia, Bioliss, Suncut, and Awake. KOSE distributes these goods via drugstores, department stores, drugstores, specialty cosmetics stores, and other retail establishments.

Kao Corp (Kao) is a company that produces, distributes, and markets chemicals and consumer goods. The company's main offerings include soaps, shampoos, conditioners, face and body cleansers, hair coloring products, and styling aids. In addition, it sells fatty alcohol, edible fats and oils, toners, scents, aroma compounds, laundry detergents, kitchen cleansers, sanitary napkins, and health drinks. In August 2021, Bondi Sands, an Australian self-tanning company renowned for its premium sunless tanning products that provide a bronzed glow that looks natural, was acquired by Kao Corporation.

Bondi's wide range of items would be added to Kao Corporation's product line with this acquisition.