Chinese haircare sector to reach US$14.2bn by 2024, says GlobalData

The haircare sector in China is forecast to grow from C¥77.9bn (US$11.4bn) in 2019 to C¥95.6bn (US$14.2bn) by 2024, recording a compound annual growth rate (CAGR) of 4.2%, says GlobalData, a leading data and analytics company.

GlobalData’s report, ‘China Haircare – Market Assessment and Forecasts to 2024’, reveals that the shampoo category led the sector with a majority share of 71.4% in value terms in 2019. It was followed by conditioner and hair colorants categories. Saloon haircare is forecast to register the fastest value growth at a CAGR of 8.0% during 2019–2024 while the styling agents’ category is expected to gain maximum market share from other categories during the same period.

Susmitha Bynagari, Consumer Analyst at GlobalData, says: “As purchasing power continues to rise, the demand for products that offer benefits over and above basic cleansing such as those that help prevent hair loss and abet hair growth are on the rise. In parallel, the market is witnessing a shift towards premium products particularly among young consumer cohorts, leading to rise in several high-end haircare brands in recent years.”

Procter & Gamble, Beiersdorf Ag, and Unilever are the leading companies in the Chinese haircare sector. Through its brand Head & Shoulders, Procter & Gamble led the Chinese haircare sector in value terms in 2019. Further, private labels, which account for a small share, are growing at a higher CAGR than the brands in the sector.

Among the distribution channels, hypermarkets & supermarkets led the sector with a value share of 36.1% in 2019.

Ms Bynagari concludes: “China is the largest market for haircare in the Asia-Pacific region. With increased focus on grooming, there is a growing demand for haircare products such as hair colorants and salon hair care. In addition to premium and personalized products, products with ‘natural ingredients’ and ‘free from chemicals’ are also steering growth in the Chinese haircare sector.”

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