25 Jun 2021
Posted in Consumer
Japan’s haircare market development primarily driven by salon haircare growth, says GlobalData
The Japanese haircare sector is forecast to grow from J¥611bn (US$5.7bn) in 2020 to J¥640.2bn (US$6.7bn) in 2025, growing at a compound annual growth rate (CAGR) of 0.9% over the 5-year period. The Japanese haircare market growth is majorly driven by salon haircare growth, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Japan Haircare – Market Assessment and Forecasts to 2025’ reveals that the salon haircare category is forecast to register the fastest value CAGR of 3.7% during 2020–2025. The category is followed by hair colorants, which is projected to record a CAGR of 1.1% during the same period.
Anjali Singh, Consumer Analyst at GlobalData, says: “Consumers in Japan have been forced to rethink that their purchases with health & wellness are now playing a more important role, particularly in the wake of the pandemic. This will continue to support the interest in natural and organic ingredients. Furthermore, with consumers becoming more health-savvy, they are increasingly taking note of the labeling of personal care products. Therefore, brands such as Kao are launching milder and gentler haircare products in keeping with growing consumer desire for transparency.”
‘Parapharmacies/drugstores’ was the leading distribution channel in the Japanese haircare market in 2020, followed by hypermarkets & supermarkets and convenience stores.
Per capita expenditure of haircare in Japan increased from US$37.8 in 2015 to US$45.7 in 2020 and is expected to reach US$55 by 2025. Furthermore, it is higher than the per capita expenditure on haircare, both at the global (US$11.4) and the APAC (US$7.4) level.
Kao Corporation, Unilever, and Shiseido Company Limited were the top three companies in the Japanese haircare market by value in 2020, while Tsubaki and Asience and Sala were the leading brands.
Ms Singh concludes: “Japan has an ageing population, as people aged 65 and above are expected to represent around one-third of the total population by 2036. This is in turn likely to boost the demand for anti-ageing products such as anti-ageing conditioner in the Japanese hair care market.”