The haircare sector in the Philippines is forecast to grow from PHP53.3bn (US$1,021.8m) in 2019 to PHP64.1bn (US$1,194.3m) in 2024, recording a compound annual growth rate (CAGR) of 3.8%, says GlobalData, a leading data and analytics company.

GlobalData’s report,  ‘Philippines Haircare – Market Assessment and Forecasts to 2024’, reveals that the shampoo is the largest category by value, followed by conditioner and styling agents categories. Furthermore, saloon haircare category is forecast to register the fastest value growth at a CAGR of 4.3% during 2019–2024 while shampoo 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: “Robust consumer confidence on the back of low unemployment and increasing disposable incomes is driving consumer spending in personal care products, and hair care is no exception to this trend. While shampoos continue to dominate the sector, increasing incomes have helped consumers to invest in other products such as conditioners and styling agents that engender elevated perceived looks and appearance.”

‘Hypermarkets & supermarkets’ emerged as the largest distribution channel in the Filipino haircare sector, followed by convenience stores and health & beauty stores in 2019.

Unilever, Procter & Gamble, and Colgate-Palmolive Company are the top three companies in the country. Cream Silk, Pantene, and Palmolive Naturals are the leading brands in value terms in the Filipino haircare sector in 2019.

Among the distribution channels, hypermarkets & supermarkets led the sector with a value share of 27.1%, followed by convenience stores with a value share of 27% in 2019.

Styling agents is the most consolidated category in 2019, with the top three market players accounting for a combined value share of 95.1% in the country.

Ms Bynagari concludes: “Increasing urbanization coupled with growing awareness about haircare among the working class will continue to drive sales. Increasing middle-class population in the country with increasing income levels offers ample opportunities for manufacturers to target this section of the population with affordable products through multiple channels of distribution to boost the sales of the sector.”