The Chinese haircare market is projected to grow from CNY80.2bn (US$11.6bn) to CNY88.2bn (US$12.9bn), at a compound annual growth rate (CAGR) of 1.9% between 2020 and 2025, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘China Haircare – Market Assessment and Forecasts to 2025’, reveals that the market is majorly driven by growth in the salon haircare category, which is forecast to register the fastest value CAGR of 9.5% during 2020-2025. The category is followed by styling agents, which is projected to record a CAGR of 6.9% during the same period.
Mounika Neela, Consumer Analyst at GlobalData, says: “Premiumization trend is gaining further ground in the Chinese haircare market. With the growing economy and rising disposable incomes, consumers are opting for premium haircare products, which in turn, is leading to an increased demand for imported brands.
“Additionally, consumers in China seek bespoke products tailored to their specific needs. For instance, consumers concerned about issues such as dry and brittle hair seek hair moisturizing and nourishment products. Likewise, consumers struggling with premature baldness opt for products which help to prevent hair loss and assist hair growth.”
‘Hypermarkets & supermarkets’ was the leading distribution channel in the Chinese haircare market accounted with a value share of 32.7% in 2020, followed by e-retailers and health & beauty stores with shares of 28.9% and 12.9%, respectively.
Procter & Gamble, Beiersdorf Ag and Unilever were the top three companies in the Chinese Haircare market by value in 2020 while Head & Shoulders and Rejoice were the leading brands.
Ms Neela concludes: “Consumers in China have long displayed an affinity for haircare products with natural and organic claims. They are increasingly seeking beauty and personal care products with reduced and simpler ingredients, along with claims of chemical-free formulations. As a result, products containing natural and familiar food ingredients such as fruits, vegetables, flowers and spices are therefore gaining more popularity in the country. Furthermore, with consumers leading busy and hectic lifestyles, products which save time as well as give instant results are becoming popular in China.”