Around the world, hair care is a top priority for the beauty consumer today. Recent Euromonitor International data confirms this perception, showing growth across all categories and indicates that total value sales grew 3.4%, totaling $ 72.17 billion globally last year.
The Asia-Pacific region has the largest sales share with US $ 22.6 billion, up 3.7%, while North America with US $ 13.9 billion is the second in the ranking, followed by close by Western Europe, with $ 13.8 billion. Latin America appears with a strong share in value, with US $ 11.52 billion, while the Middle East and Africa, Eastern Europe and Australasia make up the rest of the total.
Brazil, with its long history of immigration from Africa, Europe, Japan and the Middle East, and racial miscegenation, has a high level of ethnic diversity and the development of products for all types of hair, especially the curly, given the strong African immigration in the time of slavery.
Thus, historically, Brazil has a strong demand for hair straighteners. Gradually, the industry is offering more and more options for consumers with ethnic hair, as seen in 2016 with the boom of products for curly, wavy and afro hair. But, according to Manoella Cabrera Hernandes, Senior Business New Associate for market research agency Euromonitor, in her presentation at the ITEHPEC Hair Workshop “Challenges and Strategies in Hair Care”, promoted by the association of the sector – Abihpec this is the Segment that has most grown in the industry. “The industry as a whole saw a decline between 2015/2016, which was felt also here in Brazil but even so, we see potential for growth over the next 5 years,” she says.
According to Manoella, this growth should come from the added value to products, or premiunization, much more than from the increase in sales volume itself.
The segment that contributes most to the beauty market in the world is skin care, with approximately 26% of the total market. “It’s a category that adapts faster to trends, to the changes in habit and has a a little faster cycle of innovation ,” says Manoella Henandes.
According to her, the hair category was the last of the categories to feel the crisis and with growth potential for the coming years. “Today we expect an average 4.3% growth in the global hair segment over this five-year period. So there’s a potential for growth, “she says.
The hair category accounts for 17% of the beauty industry as a whole, but according to the Euromonitor chart, it is still formed today by very basic products. More than half of the category is composed of shampoos and conditioners. And then the category of dyes, which has been falling worldwide. “What makes us think about whether or not to invest in a new category, a new product, or keep the traditional, but with greater added value to these categories so present in the market,” says Hernades.
Latin America also has a relevant hair products industry with a market of $ 12 million. To get an idea, the expectation for the coming years is a global growth of 4.3%, while in Latin America it should reach 6.2% or 6.3% in the next five years. Thus, Manoella sees growth opportunities for the region. “Although emerging, the hair market in Latin America is relevant, mature and sophisticated in terms of per capita in dollars consumption, from which it can be deduced that per capita consumption in the region is high,” she says.
However, the Latin American market as a whole, according to Euromonitor, although mature, very large and sophisticated, is still sensitive to macroeconomic and political changes and also to social changes, with results that have impacted the hair market in the region at US $ 20 million in the period 2015/2016. Still, according to the agency, average growth for the category of 6.2% in the region is expected to occur, while globally is expected a growth of 4.3% .
These social influences should act on the expected growth for this market, through products with higher added value, but mainly, by changes in consumers. A group of young people with specific demands on a product, milleniums, people looking for more detailed information about a particular product or a different formulation. Thus, the agency points out that social changes still should have a great impact on the beauty industry.
Global Trends for the Hair Segment
(Where there are Opportunities to surf in this wave of growth)
There are three global trends pointed out by Euromonitor international for the next five years:
– Sustainable beauty, already present in the market, but that should increasingly influence this growth in the category of hair, The trend of green beauty calls for lighter ingredients, natural ingredients, anti-pollution, waste-free and efficient water use.
– Diversity – multiculturality of beauty for the hair segment;
– Skicare Influence on hair care products influenced by skin care products.
Sustainable Beauty is an increasingly strong trend for the hair segment. She comes in contact with this group of milleniums, who want to have a change of lifestyle in general, especially in relation to the environment and the local community. Some opportunities to approach this new consumer are: formulation with new, more sustainable ingredients, plant extracts, oils, but also the history behind these formulations. How companies work with local communities in extracting ingredients. There is even an opportunity to tell these consumers about “free from” – sulfate, salt, this is a claim to talk to this consumer who seeks the most sustainable beauty.
Diversity and multiculturalism should come with customization of products that speak to the consumer, their specific identity, or a group of people with a specific religion, such as halal beauty, Muslim certification for beauty products, which are manufactured, produced And made up of permissible ingredients under Islamic law.E produtos de maior valor agregado (premiunização) que tragam as funções diferenciadas de produtos para os cuidados com a pele, como produtos anti-poluição, ou produtos com filtros solares.
“The Brazilian consumer is very sophisticated, both in terms of per capita spending and in terms of habit and frequency of use, with mature and well-established hair care routines. it is competitive in this category. So why not look at external trends and bring them to the country in a focused way? “, proposes Manuela.
There are many examples of products that Brazilians have adapted from global trends, here we are showing just a few:
Within the line of natural products, Lola Cosmetics is launching the Shampoo Rebelde Com Causa! (See in Display Window), whose formula seeks the balance between clean scalp and restored threads through an innovative ingredient, Activated Charcoal.
Inoar has developed the Minha Avó Fazia line, with pre-shampoo and shampoo with a powerful combination of rosemary, avocado and coconut oils, as well as ceramides, collagen, vitamins and Whey Protein, which aid in the growth, strengthening and combat of falling thread. The products are released for the Low Poo and No Poo techniques and the company already exports to professionals and end consumers in more than 40 countries.
DO • HA Professional seeks sustainable ingredients for its products and has launched, for example, a Pre-Shampoo Exfoliator with cellulose-based microspheres. “The novelty is a promising, renewable and biodegradable solution to mitigate the pollution caused by plastic microspheres in rivers and oceans around the world, as well as aiding the process of removing dead cells from the scalp, rebalancing it,” says Aline Motta Fernandez, Brand marketing manager.
Feito Brasil launched the Refreshing Shampoo Capillary and Body Urban Man, a multifunctional product that can be used in the hair and also as shampoo for the body. Provides shine, moisturizing and repair to the hair, in addition to maintaining healthy looking skin, promoting silky and soft touch. Contains vegetal keratin, vegetal water and does not have dyes.
And from Surya Brasil, the Surya Brasil Coco and Ucuuba Saltless Shampoo, made with natural ingredients such as organic oil from Capim Limão, coconut and Ucuuba, besides being vegan.
Symryse has a specially developed product for the effects of hair pollution: Cremogen AlphaPulp. It is a compound made from sweet almond extract, malic acid, butylene glycol and grapefruit, orange, kiwi and apple juice concentrates prepared in the water. The company claims that malic acid is specifically efficient against pollution, while the extract of sweet almonds increases the brightness and strength of damaged hair.