22 Jun 2021
Posted in Consumer
Malaysia’s haircare market to reach US$366.9m by 2025, says GlobalData
The Malaysian haircare market is projected to grow from RM1.1bn (US$272.7m) in 2020 to RM1.5bn (US$366.9m) by 2025 at a compound annual growth rate (CAGR) of 5.4% over the 5-year period, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Malaysia Haircare – Market Assessment and Forecasts to 2025’ reveals that the market growth is majorly driven by the perms & relaxers category, which is forecast to register the fastest value CAGR of 6.4% during 2020–2025. The category is followed by styling agents which is expected to record a CAGR of 4.8% during the same period.
Anjali Singh, Consumer Analyst at GlobalData, says: “In the backdrop of the covid-19 pandemic, sustainability has become an important matter of consideration across all age groups, also being reflected in their haircare product choices such as products with ‘biodegradable packaging’ is taking a preference amongst the consumers. Moreover, as restrictions continue to be imposed on public places such as salons, the demand for home-based haircare products is likely to see a growth.”
‘Hypermarkets & supermarkets’ was the leading distribution channel in the Malaysian haircare market in 2020, followed by convenience stores and chemists/pharmacies.
Per capita expenditure of haircare in Malaysia increased from US$7.6 in 2015 to US$8.2 in 2020 and is expected to reach US$10.6 by 2025. It was higher than the regional level (US$7.4) but lower than the global level (US$11.4).
In terms of the leading players, Unilever, L’Oreal S.A., and Proctor & Gamble were the top three companies in the Malaysian haircare market by value in 2020, while Brylcreem and Sunsilk were the leading brands.
Ms Singh concludes: “Consumers have become increasingly aware of environmental protection, urging manufacturers to launch products which are sustainable in nature, combined with added features such as natural ingredients and free from chemicals.”