Asia-Pacific (APAC) region is set to surpass Americas to become the largest haircare market by 2022 holding a value of US$32.8 billion, according to leading data and analytics company GlobalData.
The company in its report, Opportunities in the Asia-Pacific Haircare Sector, forecasts that APAC region, which accounted for a 35.2% value share of the global haircare sector in 2017, is set to grow at a compound annual growth rate (CAGR) of 6.1% over the period 2017-2022.
Consumer trust in familiarity will spur interest in traditional/natural ingredients for haircare
Although counterfeiting of haircare products currently poses a major threat to the manufacturers in APAC, the region has ample growth opportunities to capitalize on growing popularity of products with ‘natural’ ingredients. Products with natural ingredients such as lychee, green tea extracts, avocado extracts and the like are popular online. “According to a consumer survey by GlobalData, around 55% of the respondents in Asia & Australasia stated that they are interested and actively buying beauty and grooming products with ‘natural’ claims. Leading brands will, therefore, have to focus on this consumer affinity towards natural herbal remedies to spur growth”, says Srimoyee Nath, Senior Analyst – Consumer Markets at GlobalData.
Untapped opportunity in hair loss treatments, and perms and relaxers
The APAC market for haircare products is highly fragmented with the top five brands holding a value share of 23.5% in 2017. The presence of a large number of brands catering to specific consumer needs reflects the demand for personalized haircare solutions in the region.
The top 10 companies in the region include Procter & Gamble, Unilever, Kao, L`Oreal S.A., Shiseido Company, Limited; Henkel AG & Co KGaA, Hoyu Co., Ltd.; Marico Ltd., Beiersdorf Ag and Mandom Corporation. Most of these are present in shampoo, conditioner, styling agents and hair colorants categories. However, hair loss treatments, and perms and relaxers present an untapped opportunity for the leading companies in the haircare sector, reveals GlobalData.
China, Malaysia, the Philippines, and India identified as high potential countries
The company has identified China, Malaysia, the Philippines, and India as the four high potential countries in the region based on its ranking methodology. Rising disposable incomes in growing economies such as India and China, as well as improving retail infrastructure in these large populous countries are expected to drive the value and volume sales in the region. Moreover, a large male population in these countries seeking haircare solutions influenced by rising celebrity endorsements is also boosting growth in the sector.
Busy lifestyles spur demand for time saving haircare solutions
Working professionals in APAC countries such as China are seeking quick and effective grooming solutions. According to the consumer survey, around 78% of Chinese respondents stated that it is important to look their best at all times. Furthermore, haircare products with multiple/additional benefits such as multi-purpose shampoo that prevents graying of hair along with cleansing and conditioning benefits are making strong inroads in countries like the Philippines.
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