Market Trends of Europe Hair Care Industry
Significant Rise in Hair Care Expenditure
Availability and affordability of hair care products, such as shampoo, conditioner, oil, spray, etc., supported by the growth of online distribution channels, are pivotal in increasing spending on hair care products across the region. Furthermore, the market has witnessed an increasing number of millennials experiencing hair problems like hair fall and dandruff owing to changing lifestyle patterns, along with an increase in stress levels among the working-class women population, which is expected to boost the demand for these products. The growing inclination of consumers to use hair care products to maintain good hair health further supports the sales of branded hair care products. Additionally, because of their busy lifestyle, consumers are spending more on hair care services from salons, which is also a significant factor driving the market growth.
Additionally, the growing awareness about hair care products through social media, magazines, and TV advertisements encourages consumers to explore various hair care brands. According to Office for National Statistics (UK), in 2021, households in the United Kingdom's second-lowest decile spent an average of GBP 1.80 per week on hair and cosmetic products. Comparatively, families in the top ten percent spent nearly 5.5 times as much as those in the bottom ten percent. For most income categories, the typical weekly spending on cosmetics, hair products, and related electrical equipment made up about one percent of total family spending.
Shampoo is the Largest Market
The shampoo segment dominated the sales of Europe hair care products. With evolving consumer demand for shampoo products prepared with natural ingredients, manufacturers are continuously expanding their product portfolio with new and innovative product offerings for various hair types and hair-related problems. Innovation such as convenient pack size, use of value-added ingredients in the product, and growing demand for natural shampoo has fueled the market's growth. For instance, in August 2021, Monday Haircare launched in the United Kingdom with its 8-piece collection, which is divided into four targeted lines, each including a shampoo and conditioner, to suit everyone's hair types and hair care needs.
Moreover, consumers are looking for shampoos infused with oils, including blended formulations and pure organics, thus, providing healthy fixes for dry and damaged hair. According to estimates by the European Commission, the production value of shampoo was almost EUR 2.13 billion in 2021. Production value grew overall throughout the period under review.
