Thailand’s haircare sector set to grow at 6.1% CAGR during 2019–2024, says GlobalData

The haircare sector in Thailand is forecast to grow from THB38.5bn (US$1,219.2m) in 2019 to THB51.8bn (US$1,712.4m) by 2024, recording a compound annual growth rate (CAGR) of 6.1%, says GlobalData, a leading data and analytics company.

GlobalData’s report, ‘Thailand Haircare – Market Assessment and Forecasts to 2024’, reveals that the shampoo category led the sector in value terms in 2019, followed by conditioner and hair colorants categories. Furthermore, the hair colorants category is forecast to register the fastest value growth at a CAGR of 8.1% during 2019–2024, and the category is expected to gain maximum market share in value terms during the same period.

Susmitha Bynagari, Consumer Analyst at GlobalData, says: “While standard products such as shampoos and conditioners continue to rule the roost, growing awakening to the need of maintaining healthy hair is pushing consumers towards a wide variety of other options such as perms and relaxants, salon hair products and colorants among others, contributing to growth in the sector volume and value. Simultaneously, consumers are becoming increasingly wary of ingredients used, driving shift in allegiance towards those claiming to use natural ingredients.” 

Growing popularity of health and wellness trend is driving the demand for ‘natural’ claimed haircare products. Moreover, the increasingly busy lifestyle of urban consumers is fuelling the demand for time saving hair solutions which are quick to use and are effective in grooming are aiding to the growth of the sector.”

The value share of Thailand in the global haircare sector is expected to increase from 1.5% in 2019 to 1.7% by 2024. Similarly, the country’s share at regional level is expected to increase from 4.1% in 2019 to 4.5% by 2024.

Unilever, Procter & Gamble, L’Oreal SA, and Kao are the leading companies in the Thai haircare sector. Through its brands Sunsilk and Clear, Unilever led the Thai haircare sector in value terms in 2019.

Private labels are growing at a faster pace than brands all though they have a small share in the market.

Among the distribution channels, hypermarkets & supermarkets led the sector with a value share of 32.4% in 2019.

Ms Bynagari concludes: “Multiple factors, including growing economy, rising consumer awareness and growing participation of women in workforce are driving consumer interest in haircare solutions. Manufacturers are responding to the changing trends with the launch of new products, which together with retailers’ efforts to expand presence on e-commerce will fuel value growth in the sector to 2024.

“Consumer preference towards premium and innovative products is driving the growth of the haircare sector in the country. Furthermore, the growing health awareness among the Thai consumers is increasing the demand for haircare products made from organic/natural ingredients and is contributing to the growth of haircare market in the country.”

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