Hi, thank you for the question. As you probably know, the hair care
industry is very large. In fact, hair care products have the highest
sale volume of all non-food items in the United States. I attempted to
provide you with a strong general survey of the industry below. Feel
free to let me know if you need any further clarification.
OVERVIEW:
The U.S. Market for Hair Care Products
http://www.packagedfacts.com/pub/278691.html
<<Hair care is a hot but complex market that is presently worth over
$6 billion and is projected to grow to $7 billion by 2005. Americans
are more style-conscious than ever before; greying baby boomers -- of
both sexes -- are trying a range of hair care products to help them
look and feel younger. Generations X and Y are even more adventurous
than their parents, as they condition, mousse, bleach and perm at
will. A savvy marketer can make a splash, if he chooses the right
stance for his products. This new Packaged Facts report offers
executives in-depth analyses of the action in shampoos, conditioners,
styling products, hair colorings, accessories, home permanent/relaxer
kits, and hair growth products. Sales trends are examined, as well as
brand shares. Also covered are the competitive strategies of
Alberto-Culver, Clairol, L'Oreal, Procter & Gamble, Revlon, Unilever,
and others.>>
Primary industry products;
<<Seven product categories are identified. In descending order of
category dollar size, the seven are shampoos, styling products,
conditioners, accessories, coloring, home permanent/relaxer kits, and
hair growth products.>>
The above site offers a full industry report for $2,799. I can't
promise you that detail, but I will attempt to provide you with
adequate background on the industry, as well as recent trends and
developments.
PR News Wire
June 14 2003
<<MarketResearch.com, the premier business intelligence marketplace,
announced the release of a new report, ?The U.S. Hair Care Market,?
published by Packaged Facts. According to the study, the hair care
product market has experienced substantial growth since 1996 due to
increasing experimentation with new hair treatments and styles in the
United States. As wide ranges of hairstyles have become acceptable in
casual workplaces and in society as a whole, the product market has
felt the results.>>
<<?The hair care market is often considered a mature market with
little potential for expansion, but the data tells another story,?
said Richard Koulbanis, VP of Publishing for MarketResearch.com. ?Five
of the seven major categories covered in the report have experienced
substantial growth over the past five years, illustrating the effect
cycles of experimentation and demographic shifts can have on even the
most established industries.?>>
<<U.S. retail dollar sales of hair care products amounted to over $6.2
billion in 2000, for a 4.3% improvement over the $6.0 billion posted
for 1999. During 1996-2000, the overall hair care market?s compound
annual rate of growth (CAGR) was a robust 4.2%. Total growth for the
same four years was 17.9%, or $942.0 million. In 2000, the 4.3%?or
$259.0 million?increment was produced by shampoo, styling products,
conditioners, accessories, and hair color, while the two smallest
categories, home permanent/relaxer kits and hair growth products, both
continued to lose ground. The overall U.S. hair care market is
projected to be worth nearly $7.5 billion at retail in 2005. That
record sum will result from steady growth of roughly 3% or 4% during
each year of the period 2000 through 2005. The compound annual growth
rate (CAGR) for the time frame will be 3.7%.>>
Factors impacting the industry;
<< * Increasingly style-conscious Americans, young and old, are
pouring money into hair care products.
* The competitive strategies of major players stack up against
each other in this complex market.
* Graying baby boomers are creating a huge demand for the hair
care products that make them feel younger.
* New developments, such as hybrid products, are changing the hair
care industry.>>
Biggest Players;
<<# Alberto-Culver
# L?Oreal
# Clairol
# Upjohn
# Procter & Gamble
# Unilever
# Revlon>>
http://www.packagedfacts.com/pub/278691.html
Hair Care Industry Statistics:
Private Label Buyer
July 2003 (lexisNexis)
<<<HAIR CARE PERFORMANCE
DOLLAR SALES % CHANGE DOLLAR
SUBCATEGORY (IN MILLIONS) VS. YR. AGO SHARE
HAIR CONDITIONER/CREME RINSE
Total private label $10.9 1.6% 1.4%
Total category $795.5 -1.0% 100%
HAIR GROWTH PRODUCTS
Private label $25.9 -2.4% 35.6%
Total category $72.9 -3.7% 100%
HAIR SPRAY/SPRITZ
Private label $1.1 -0.3% 0.3%
Total category $403.8 -2.4% 100%
SHAMPOO
Private label $38.6 4.9% 3.0%
Total category $1,294.6 0.2% 100%
DANDRUFF SHAMPOO
Private label $16.5 1.1% 1.3%
Total subcategory $247.6 2.1% 19.1%
REGULAR SHAMPOO
Private label $21.8 6.9% 1.7%
Total subcategory $1,042.6 0.0% 80.5%
SHAMPOO & CONDITIONER COMBO PACK
Private label $.239 846.3% 0.0%
Total subcategory $4.3 -40.6% .3%
HAIR COLORING
Private label $.662 -19.0% .1%
Total category $1,090 -2.9% 100%
HAIR ACCESSORIES
Private label $15.5 -43.4% 2.8%
Total category $553.7 -5.8% 100%
HAIR STYLING GEL/MOUSSE
Private label $6.2 12.3% 1.1%
Total category $551.8 4.9% 100%
UNIT SALES % CHANGE AVG. PRICE
SUBCATEGORY (IN MILLIONS) VS. YR. AGO PER UNIT
HAIR CONDITIONER/CREME RINSE
Total private label 4.3 5.9% $2.53
Total category 251.5 -2.1% $3.16
HAIR GROWTH PRODUCTS
Private label 1.1 -4.2% $22.94
Total category 2.5 -2.1% $28.66
HAIR SPRAY/SPRITZ
Private label 0.447 7.7% $2.46
Total category 143.3 -7.8% $2.82
SHAMPOO
Private label 14.5 5.9% $2.66
Total category 413.9 -1.6% $3.13
DANDRUFF SHAMPOO
Private label 5.4 3.0% $3.01
Total subcategory 50.4 2.5% $4.91
REGULAR SHAMPOO
Private label 8.9 7.3% $2.43
Total subcategory 362.6 -1.9% $2.87
SHAMPOO & CONDITIONER COMBO PACK
Private label 41.3 505.6% $5.80
Total subcategory .830 -42.3% $5.19
HAIR COLORING
Private label .133 -24.6% $4.96
Total category 156.6 -3.2% $6.96
HAIR ACCESSORIES
Private label 7.3 -30.3% $2.13
Total category 207.6 -5.7% $2.67
HAIR STYLING GEL/MOUSSE
Private label 2.1 1.4% $2.95
Total category 154.8 -0.7% $3.56
Source: Information Resource Inc.,
Total food, drug and mass merchandiser sales (excluding Wal-Mart) for
the 52 weeks ending April 20, 2003.
Standing Out From the Crowd>>>
INDUSTRY TRENDS:
Increasing consumer confidence in private labels is fueling growth in the industry;
Private Label Buyer
July 2003
Hair care shines: consumer confidence and new products boost dollar
and unit sales in hair care category
"Makers of private label shampoo aren't pulling their hair out over
the state of their business. That's because shampoo is leading the
overall private label hair care category to a strong sales
performance. Other subcategories also showing growth include hair
spray/spritz, hair conditioner/creme rinse and hair styling/ setting
gel/mouse.
Industry experts say more consumer confidence in store brands in
general is behind the upward trend in sales, as well as exciting new
products and parity with national brands in hair care lines. They
singled out upscale and niche products as examples of successful
formulas because they perform like salon brands."
This trend is likely to continue as private companies further specialize;
"Wachsberg of Apollo Corp. agrees that retailers will continue to look
for ways to increase differentiation and profitability. Because of
this, the present growth in the private label hair care category will
be sustained.
"Consumers who have bought into the private label experience will
continue to expect larger and more contemporary assortments of the
newest and most current product comparables," he says.
Products that will do well will offer "unique and measurable
performance benefits," according to Wachsberg. "Products that offer
exotic, exoteric extracts, novel ingredients that absorb into hair
shafts and normalize scalp for optimal hair growth will succeed and
flourish. New chemistries that offer discernable performance
differences from standard products will emerge."
Salon hair care sales are down;
PR Newswire
March 3, 2004
More Acquisitions Likely as Salon Hair Care Sales Continue to Slip
"In recent years, disappointing sales growth in the salon hair care
market has impelled product suppliers to expand their businesses
through a spate of acquisitions. Initial results compiled by Kline &
Company for a new market study indicate that U.S. sales growth in this
sector dipped even lower in 2003, and that the trend toward supplier
consolidation is likely to continue."
Big players like L'Oreal and P&G have bought out many salon lines;
"L'Oreal and Procter & Gamble stand out in front of the leading
marketers that have been swallowing up salon hair care companies and
brands to bolster revenues in the face of flagging category sales.
L'Oreal has bought Redken (1993), Matrix (2000), Soft Sheen (1998),
Carson (2000), and most recently, Artec (2002). These purchases give
the French beauty products giant an even stronger and more diversified
position in the U.S. salon products market.
P&G has also expanded its hair care portfolio with two substantial
moves. It bought Clairol from Bristol-Myers Squibb in May 2001 and
then acquired Wella in a multibillion-dollar deal that closed in
September 2003."
The U.S. market for salon based hair care products is reportedly stagnant
"The salon market continues to consolidate, but at the same time, it's
becoming even more of a global market," says Contreras. "Companies are
looking for growth, and since the U.S. market is stagnant, many of
them are turning to other countries and regions to grow their
business."
Fragrance trend;
MMR
November 3, 2003
SECTION: Vol. 20, No. 18; Pg. 32; ISSN: 0743-5258
Fragrance is the big thing in shampoos.
<<Klamo credits Procter & Gamble Co.'s Clairol Herbal Essences--the
top-seller across all mass market channels in the shampoo segment with
igniting this trend, and she notes that other brands have been quick
to follow its lead. It is a trend that, intentionally or
unintentionally, leverages one of the most effective promotion
techniques known to marketers.
"Sampling is so important," says Alisha Kolski, vice president of Amp
Insights, a consumer research firm, noting the tactic's particular
resonance with teens and young adult women. "Sampling can be the
deciding factor in a teen asking her mother to buy a specific brand,
for example."
Fragrance plays a major role in Alberto-Culver Co.'s marketing for its
hair care products, including its flagship brand. "Alberto VO5 has
long been a leader in bringing innovation to the shampoo and
conditioner lines, introducing products with herbal and botanical
formulas and outstanding fragrances," says a spokesman for the
company.>>
Targeting Baby Boomers;
<<A growth area in the shampoo and conditioners segments is products
formulated specifically to address hair care problems faced by aging
baby boomers, such as graying or thinning hair. P&G, for example, will
launch Full and Thick Pantene early next year. A company spokesman
describes the new product as "the first major brand to address the
needs of consumers with thin and thinning hair.">>
Targeting teen boys;
MMR
November 3, 2003
SECTION: Vol. 20, No. 18; Pg. 31; ISSN: 0743-5258
Teen hair care no longer just for girls.
<<One of the fastest-growing areas is boys' use of styling aids, products
NEW YORK -- Teenagers remain one of the most formidable and dynamic
markets for hair care products, with such trends as salon-style
products for highlighting
and straightening, and the increasing use of styling products by boys
impacting the category.
Highlighting products are key drivers for the teenage market, experts
say. "Girls love to color their hair," comments Abby Gardner, beauty
director for YM magazine.>>
Culture/Ethnic trend;
MMR
July 28, 2003
SECTION: Vol. 20, No. 11; Pg. 25; ISSN: 0743-5258
Culture hair care line targets needs of ethnic children
<<"The parents are thrilled at the notion that we are offering their
children products that really work for their hair," she points out.
"They also appreciate the fact that their children's needs are being
recognized and addressed." Pettorini notes that Culture is aimed at a
large and growing segment of the population. Although
African-Americans make up just 13% of the population they account for
30% of hair care sales, she says. Also, 33% of the country's ethnic
population is under 18, and by 2020 it is projected that 54% of the
tween population will be nonwhite.>>
MMR
June 16, 2003
SECTION: Vol. 20, No. 10; Pg. 126; ISSN: 0743-5258
Retailers get more proactive. (Ethnic Marketing).
<<NEW YORK -- For many mass market retail chains appealing to ethnic
consumers still means providing an assortment of ethnic hair care
items and holding a special Black History Month promotion in February
and perhaps another in May for Cinco de Mayo.
"The biggest challenge continues to be educating the retail trade,"
says Pedro Somarriba, vice president and general manager of the health
and beauty care division of Dyno Merchandise.
There are, however, a few chains that are setting the performance bar
a good deal higher. Somarriba and others in the supplier community
point to Kmart Corp. among discounters and Walgreen Co. and Eckerd
Corp. as drug chains that are making major commitments to ethnic
consumers.>>
African American Hair Care Online
Kimberly Hohman
http://racerelations.about.com/cs/beautyandhealth/a/haircare.htm
MARKETS/MARKETING:
MMR
November 3, 2003
SECTION: Vol. 20, No. 18; Pg. 31; ISSN: 0743-5258
A panoply of marketing strategies.
Marketing fluctuates;
<<NEW YORK -- Sales growth may be stalled in some segments of the
massive, multibillion-dollar hair care business, but as is often the
case with mature categories, there are still plenty of opportunities
to be found for those retailers and suppliers willing to look for
them.
In the current environment hair care suppliers are having success with
a wide variety of different branding and marketing strategies, in some
cases with approaches that are polar opposites of each other.
"Hair care is a highly competitive and dynamic category driven by the
latest styles and trends," says Bruce Byrnes, president of global
beauty care and global health care at Procter & Gamble Co. (P&G)
"Consumers have many different needs and desires, which drives
constant change in the category.">>
Hair products are the number one non-food volume item;
<<That dynamism supports a marketplace hospitable to product launches
a demand enthusiastically met by both established suppliers and niche
players. Among the 118 new nonfood items generating sales of $7.5
million or more apiece in mass market outlets last year, shampoo (No.
l) and conditioner (No. 2) accounted for more launches than any other
product categories, according to Information Resources Inc's "Time &
Trends" report.>>
Some big players;
<<At the same time hair care is a category where brand loyalty cart
play an important role, especially at the value end of the product
spectrum. Unilever HPC's Suave brand, for example, commands the
highest loyalty in the hair care category and enjoys 99% brand
awareness among the nation's households, according to the company's
research.
Shampoo, conditioner and styling aids generate 62% of Suave's total
sales volume. Alberto-Culver Co. also benefits from strong consumer
loyalty to its Alberto VO5 brand. Alberto VO5 is the top-selling brand
in the conditioning segment, and it ranks second only to Suave in
terms of consumer loyalty across the entire hair care category.
according to research from ACNielsen.>>
P&G attempts to take over other lines;
<<P&G's approach is to offer a complete portfolio of brands and
products covering the vast range of consumer demands--a strategy
bolstered by its acquisition of the Clairol hair care franchise from
Bristol-Myers Squibb Co. "At P&G we consistently deliver against
emerging consumer needs through marrying deep consumer insights with
leading-edge, breakthrough technology to develop hair care offerings
that deliver a totally delightful experience for' our consumer," says
a spokesman of the company's marketing strategy in hair care.>>
TOP BRANDS:
MMR
November 3, 2003
SECTION: Vol. 20, No. 18; Pg. 31; ISSN: 0743-5258
<<Top Brands Dollar Unit
Sales Volume
1. L'Oreal Preference $137.7 mil. 15.7 mil.
2. L'Oreal Excellence 104.7 mil. 13.2 mil.
3. Clairol Nice 'n Easy 91.1 mil. 14.9 mil.
4. L'Oreal Feria 85.0 mil. 9.0 mil.
5. Just For Men 72.4 mil. 10.3 mil.
6. Clairol Natural Instincts 65.2 mil. 9.6 mil.
7. Garnier Nutrisse 46.3 mil. 7.6 mil.
8. L'Oreal Couleur Experte 39.6 mil. 2.0 mil.
9. Clairol Hydrience 38.9 mil. 5.3 mil.
10. Revlon Colorsilk 37.1 mil. 12.3 mil.
*Total of supermarkets, drug stores and discount stores excluding
Wal-Mart Stores Inc>>
RECENT MAJOR INDUSTRY MOVES:
Thomson Media
Mergers & Acquisitions: The Dealmaker's Journal
May 1, 2003
P&G Will Use Its Wella Acquisition To Accelerate Hair Product Innovation
<<U.S. consumer goods firm Procter & Gamble Co. entered the European
hair care market in a big way with its $5.7 billion acquisition of
German beauty care company Wella AG, maker of hair care products,
cosmetics, and fragrances. The acquisition enhances P&G's presence in
Western and Eastern Europe and Latin America and provides entry to the
professional hair care products category.>>
ADDITIONAL LINKS:
Kline Group Market Research Reports
http://klinegroup.ecnext.com/coms2/summary_0229-6683_ITM
CosmeticsBag.com
http://hair-care.cosmeticsbag.com/
Staring Your Own Business
http://www.starting-your-own-business.info/franchise/hair-care-franchise.htm
Nappy and Proud (article) on Salon.com
http://www.salon.com/news/1998/12/07news.html
Mind Branch - Hair Care Market Research Report
http://www.mindbranch.com/listing/product/R379-0068.html
SEARCH TERMS USED:
Google
"hair care industry"
and market
://www.google.com/search?q=%22hair+care+industry%22&hl=en&lr=&ie=UTF-8&oe=UTF-8&start=0&sa=N
LexisNexis Industry Research
"hair care"
and narrowing search terms
Thanks again for your question. I hope this helps.
Regards,
Anthony |
