The haircare sector in Japan is forecast to grow from J¥609.6bn (US$5.6bn) in 2019 to J¥650.8bn (US$6.8bn), recording a compound annual growth rate (CAGR) of 1.3%, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Japan Haircare – Market Assessment and Forecasts to 2024’ reveals that the shampoo is the largest category in value terms and is followed by conditioner and styling agents categories in 2019. Furthermore, hair colorants are forecast to register the fastest value growth at a CAGR of 1.5% during 2019–2024, while hair colorants and styling agents categories are expected to gain maximum market share in value terms during the same period.
Susmitha Bynagari, Consumer Analyst at GlobalData, says: “Urbanized working age populace with increasing disposable income and high fashion consciousness is key for further increasing the demand for hair styling and coloring products. Ageing population is also expected to act as a stimulant for the growth of hair colorants in the country over the forecast period.”
The per capita consumption (PCC) of haircare in Japan is high compared to both the regional and global averages. It stood at 3.2 units in 2019 and is expected to marginally increase in the next five years to reach 3.3 units by 2024. Asia-Pacific PCC stood at 1.6 units in 2019, and is expected to increase further and reach to 1.8 units by 2024.
Kao, Unilever and Shiseido Company are the top three companies in the Japanese haircare sector accounting for a combined value share of 56.4% in 2019.
Further, Shampoo is the most consolidated category with the top three companies accounting for 77.1% of market share in 2019. Also, the presence of private label products is mostly in the conditioner category.
Among the distribution channels, parapharmacies/drugstores led the sector with a value share of 30.8% in 2019, followed by hypermarkets & supermarkets with a value share of 27.5%.
Bynagari concludes: “Increasing percentage of ageing population and associated age-related issues like hair thinning and scalp problems will drive demand for anti-aging scalp and hair care products. Concurrently, there is a rising penchant for mild products that popularized amino-acid-based shampoos in the country, dictating future demand in the sector.”