25 Jun 2021
Posted in Consumer
Australia’s haircare market expected to reach US$1.0bn through 2025, says GlobalData
The Australian haircare market is projected to grow from A$1.1bn (US$0.8bn) in 2020 to A$1.4bn (US$1.0bn) in 2025 at a compound annual growth rate (CAGR) of 3.8% over the 5-year period, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Australia Haircare – Market Assessment and Forecasts to 2025’ reveals that the market is majorly driven by growth in the salon hair care category, which is forecast to register the fastest value CAGR of 4.3% during 2020–2025. It is followed by hair colorants, which is expected to record a CAGR of 4.2% during the same period.
Likitha Nalluri, Consumer Analyst at GlobalData, says: “Australians are becoming more ‘beauty and personality’ conscious. The consumers are more inclined towards ‘natural and organic products, forcing the manufacturers to develop new products. Furthermore, demand for hair cleansers such as shampoos increased in 2020 due to rise in awareness about personal hygiene amid measures taken to control COVID-19 infections.”
‘Hypermarkets & supermarkets’ was the leading distribution channel in the Australian haircare market in 2020, followed by chemists/pharmacies and department stores.
Per capita expenditure of haircare in Australia decreased from US$31.4 in 2015 to US$30.2 in 2020. However, it is expected to increase and reach US$36 by 2025. Average per capita expenditure on haircare products in Australia is higher than both global (US$11.4) and APAC (US$7.4) levels.
L’Oreal S.A., Unilever and Henkel AG & Co. KGaA were the top three companies in the Australian haircare market by value in 2020, while Pantene and L`Oréal were the leading brands.
Ms Nalluri concludes: “The Australian haircare market is highly competitive with the consumers looking out for products that do not merely claim to cleanse but also offer added benefits such as intense hydration and deep conditioning, colour protection and pleasant fragrances.”