09 Jul, 2020 Malaysian haircare sector is expected to grow at a CAGR of 5.0% during 2019–2024, says GlobalDataPosted in Consumer
The haircare sector in Malaysia is forecast to grow from RM1,125.1m (US$269.2m) in 2019 to RM1,437.7m (US$341m) by 2024, recording a compound annual growth rate (CAGR) of 5.0%, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Malaysia Haircare – Market Assessment and Forecasts to 2024’ reveals that the Shampoo category led the sector in value terms in 2019, followed by styling agents and hair colorants categories. Furthermore, perms & relaxers category is forecast to register the fastest value growth at a CAGR of 13.2% during 2019–2024, while the ‘styling agents’ category is expected to gain maximum market share in value terms during the same period.
Susmitha Bynagari, Consumer Analyst at GlobalData, says: “Backed by growing disposable incomes, demand for hair care products witnessed sizable growth in recent years. Consumers display strong affinity towards products with natural ingredients driven by the ever-rising consciousness and wariness of ingredients used and their effect on their health in general. Consequent rise in the expenditure on these products resulted in the rise in number of haircare products developed using various natural and gentle ingredients will drive the future growth of the sector.”
‘Hypermarkets & supermarkets’ emerged as the largest distribution channel in the Malaysian haircare sector, followed by convenience stores and chemists/pharmacies in 2019.
Unilever, L’Oreal SA, Procter & Gamble and Coty Inc. are the leading companies in the Malaysian haircare sector. Through its brands Brylcreem and Sunsilk, Unilever led the haircare sector in value terms in 2019.
Further, male consumers accounted for a slightly higher share of 50.8% in 2019 when compared to female consumers who accounted for 49.2% share, in the overall haircare sector in Malaysia.
Ms Bynagari concludes: “With rise in consumer focus on hairstyling products such as hair gel, hair sprays, demand for these products is set to increase in the coming years. Growing interest on hair care among men is another factor adding to the growth prospects, with a wide variety of products in addition to shampoos, is gaining the footprints.”