Hello, bmf-ga
Thank you for your question. The comprehensive market information
you are requesting, however, comes at a hefty price. MarketResearch is
an example of one company which offers market reports on the hair
product industry to the tune of several thousand dollars each.
Unfortunately, the most you will get from these reports, without
paying, is a brief summary of the report and the Table of Contents.
Below is the summary of their most recent report on the hair care
industry overall:
“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%.”
You may order the report, titled “The U.S. Market for Hair Care
Products.”
Packaged Facts (6/13/2001) for $2,799.00 (US) at
http://www.marketresearch.com/Search/results.asp?SID=15413088-230413056-223411296&query=hair+color&CategoryID=80&submit1.x=22&submit1.y=8
There are also some less expensive, outdated reports you can buy, as
well as some reports you can buy “by the slice.” One reference that
may be of interest is the section from a 1999 report titled “Consumer
Hair Preparations.” From the MarketResearch URL referenced above,
click on the report title, click on the Table of Contents, click on
“by the slice”, and you can order Section 6 on “Retail Hair Coloring
Sales and Market Trends” for $310.00.
In lieu of you having to pay for reports, I have tried to compile
the most information I can for you that is publicly available. I hope
it will be of help.
General Market Statistics
As evidenced in the brief summary from the MarketWatch report, the
size of the US hair color market is a small portion of the overall
hair products market – just a portion of the 4.3% comprised of
shampoo, styling products, conditioners, accessories and hair color.
Read “The U.S. Market for Hair Care Products.”Packaged Facts
(6/13/2001) for $2,799.00 (US) at
http://www.marketresearch.com/Search/results.asp?SID=15413088-230413056-223411296&query=hair+color&CategoryID=80&submit1.x=22&submit1.y=8
With the above statistics in mind, the hair care coloring segment
was one of the most dynamic product categories in 2001 “as baby
boomers, gen X, gen Y women, as well as more men than ever before, are
more frequently experimenting with hair color.Coloring has generated
some $1.4 billion worth of business through food, drug and mass,
according to IRI, primarily due to new product introductions in the
segment, such as Gamier's Lumia, L'Oreal's Open and Clairol's Herbal
Essences hair color, said Katie All, category manager at Longs Drug
Stores. "These products are targeted to a younger (18- to 24-year-old)
first-time user and appear to have hit their target by heavily
advertising on MTV and in print media directed [toward] the younger
consumer," she reported.” Read “Multi-functional offerings fuel growth
in beauty,” by Alicia Zappier. DrugStore News.(9/10/2001) at
http://www.findarticles.com/cf_0/m3374/12_23/78269180/print.jhtml
As quoted from a 2001 article: “Despite an economy on the brink of
recession, it seems retailers can still feel good about the future of
the hair care category. Worth more than $5.5 billion in food, drug and
mass, according to data from Information Resources Inc. for the 52
weeks ended July 15, many of the same factors that have grown the
business in the last several months--including a growing fascination
with hair coloring products across a widened range of consumer
demographics, the emergence of salon-inspired mass market products and
items developed to repair damaged hair--should continue to drive sales
in the category well into 2002.”… “If anything, when dollars get
tight, consumers tend to forego expenses such as salon visits, turning
to mass market products that allow them to affect the most current
styles at home. Products such as White Rain's recently restaged Toni
Home Perm line and the continued emergence of new hair color brands,
such as Revlon's High Dimension, L'Oreal Open, Gamier Lumia
Brightening Color Creme and Clairol Herbal Essence, speak to this need
for consumers to take hair care matters into their own hands.”
Statistics from Information Resources for the 52 weeks ending July 1,
2001, show these sales numbers for Hair color:
Hair color
$1,418.6 +3.8% (sales in millions)
Read “Fashion Driven Hair-care Category Stays Strong.” Drug Store News
(10/8/2001)at http://www.findarticles.com/cf_0/m3374/14_23/79252601/print.jhtml
A rather broad article on the financial circumstances facing the
personal care and cosmetics market, which may be of some value, has an
excellent chart on page 6, showing market share for top companies and
products, which, unfortunately, lumps hair care into one product
category. Based on the 4.3% market share of “comprised of shampoo,
styling products, conditioners, accessories and hair color” (from
MarketWatch), you may be able to deduct some reasonable estimates of
the hair color market. Read “A Makeover for Personal Care and
Cosmetics,” by Pamela Sauer. Chemical Market Reporter (5/14/2001) at
http://www.findarticles.com/cf_0/m0FVP/20_259/74939476/print.jhtml
Industry estimates placed U.S. salon hair coloring revenues at $10
billion out of a total of $46 billion in 1999. Read ‘New fashion of
salon has Subway as model.” Palm Beach Post.com (6/6/2002) at
http://newsletter.palmbeachpost.com/story.asp?insID=89
The incidence of hair color has been rising and is now at 50
percent," said Liz Read, senior director of hair color marketing at
Clairol. "Of those who color, 36 percent color their hair at home."
Read “Hair Color Garners Broader Customer Base,” by Barbara White-Sax.
Drug Store News (3/26/2001) at
http://www.findarticles.com/cf_0/m3374/4_23/72987343/print.jhtml
Loreal’s casting color Spa brand for women “grew over 40 percent in
unit and dollar sales last year (2000), according to Information
Resources Inc. Read “Hair Color Garners Broader Customer Base,” by
Barbara White-Sax. Drug Store News (3/26/2001) at
http://www.findarticles.com/cf_0/m3374/4_23/72987343/print.jhtml
“With annual sales of about $1.6 billion, Clairol controls 39 percent
of the U.S. hair-coloring market, according to the Stamford-based
market research firm ACNielsen. France based L'Oreal SA controls 50
percent.” Read “A Market to Dye For,” by Peter Healy. The Advocate and
the Greenwich Times (5/27/2001) at
http://www.source-marketing.com/article19.shtml
Past Market Statistics
“By the year 2000, the hair color market is expected to increase to
55 million consumers, or about 1 in 5 Americans, according to
L'Oreal.” Read “Color-Coded Hair,” by Sara Cormeny at
http://www.pbs.org/newshour/infocus/fashion/hair.html
“1999 was marked by more innovation in hair color than any other year
of the past decade. But what really set 1999 apart from the prior year
was the target audience of the hair color category. Teens, males and
working women received most of the attention from suppliers, a shift
from 1998's focus on baby boomers.” Please see chart of 1999 Sales in
Thousands for Top Hair Coloring Brands in the article, “Expanding the
Market for Hair Color,” by Andrea Grossman. Drug Store News
(5/22/2000) at http://www.findarticles.com/cf_0/m3374/7_22/62958148/print.jhtml
Iportance of Packaging
Packaging and product displays are important to gaining
customers.Clairol’s Perry Sansone says, in a 1999 article “that in
addition to gaining share, the introduction serves as a breakthrough
in product innovation, as well as packaging."It's about customizing
color for the consumer and having the packaging communicate to her,"
Sansone said”….” Hair color competitor Revlon has made some changes,
too. Vince Colonna, senior vice president of sales, said Revlon's
ColorStay is sporting new packaging and a new formulation. The company
is running a start/stop ship on the current ColorStay packaging, to
effectively liquidate old product and make room for new product.”
…”Consumer focus was a dominate theme at the 1999 Marketplace. “More
often than ever, suppliers said, retailers are counting on them to
make commodity-driven businesses, such as shampoo, lotion and hair
accessories, customer-focused businesses by updating packages and
communicating a retailer's specific image to the consumer via
promotions.” For more information, read “In P&BC, Consumer Focus is
the Focus.” Drug Store News (8/2/1999) at
http://www.findarticles.com/cf_0/m3374/12_21/55757399/p1/article.jhtml?term=%2Bunit+%2Bvalue+%2Bhair+color
Packaging was an important component of Clairol’s launch of
Revitalique Hair Color in 1998. “Clairol's Revitalique hair coloring
kit features a dazzling component using a new offset printing
technique from Unette Corp. The single-use tube for the conditioner
component is decorated using a technique that allows every inch of the
tube to be decorated….” “Revitalique hair color kits, shipped 12
pieces per case, hit retail shelves in 50 states late in 1998, and are
reportedly selling briskly. "Without citing sales figures, I can say
that the program has been extremely successful," said Olsson. "I
believe the new packaging has succeeded aesthetically and
functionally, consistent with the attributes of the new age-defying
color system it was created to represent." Read “Clairol Debuts
Single-Use Tube With Enhanced Look.” Packaging Digest (2/2000) at
http://www.packagingdigest.com/articles/200002/68.html
Refer to the Diamond Packaging website at
http://www.diamondpkg.com/awards.asp?type=industry&industry_cd=1 to
see the 2002 packaging awards for hair products.
Male Trends
“Men’s hair coloring is one of the fastest growing segments of the
hair-coloring market.” Read “Hair Color Garners Broader Customer
Base,” by Barbara White-Sax. Drug Store News (3/26/2001) at
http://www.findarticles.com/cf_0/m3374/4_23/72987343/print.jhtml
“Trend-watcher Roger Selbert notes that men have turned to hair
color in response to a changing workplace, filled with young
colleagues and superiors, a growing number of whom are female. “In the
past, looking older and more experienced was a benefit,” says Selbert,
who publishes the Century City, California-based Growth Strategies
newsletter. “Now, you have to keep up with all the changes in
technology and look vigorous and youthful to succeed.” From “American
Demographics at http://www.salonclick.com/pages/itn_amer.html
Younger men are beginning to use hair color as a fashion statement.
“L'Oreal has targeted that consumer specifically with its four-SKU
Feria For Men line, launched last year. Two new Feria For Men SKUs are
slated to be added to the line this spring….Last spring, L'Oreal
introduced Casting Color Spa for Men, a seven-SKU line of tone-on-tone
color for men who want to blend away their first signs of gray. Read
“Hair Color Garners Broader Customer Base,” by Barbara White-Sax. Drug
Store News (3/26/2001) at
http://www.findarticles.com/cf_0/m3374/4_23/72987343/print.jhtml
“Gray hair is increasingly passé in men’s hair fashions, and dye
purveyors have launched an advertising push to get the word
out.Television and print ads aimed at getting men to dye the gray out
of their hair have tripled over the past decade, in line with an
explosion in sales of hair-coloring products for men. Those sales
soared to $129.3 million last year from $39.6 million in 1989,
according to estimates by market researchers A.C. Nielsen.And while
dyed males are still outnumbered about 10-1 by their female
counterparts, they are narrowing the gap. According to pollster Roper
Starch Worldwide, 36% of men recently questioned indicated they had
either tried coloring their hair or were open to it….”There’s a whole
new generation right behind us that’s pushing real hard, so men want
to stay on top of their game,” says Dominic DeMain, senior vice
president of U.S. marketing for Combe.As a result, men’s sales have
become the hottest segment in the U.S.’s $1.3 billion a year hair
coloring industry. According to officials of one national drug
retailer, which asked that their company’s name not be used, the store
space they devote to men’s hair dyes has grown to six 2-foot shelves
from two over the past decade. Stoking the interest is a barrage of
product advertising, which grew to $32 million last year from $10
million a decade ago, according to Competitive Media Reporting. Read
article from “The Wall Street Journal” (1/17/2002 ) at
thttp://www.salonclick.com/pages/itn_wsj1.html
Covering the Grey
“Fashion statements aside, hair color has long been used to
camouflage gray and the majority of users are still using color for
that reason alone. L'Oreal's Preference and Excellence held the top
two brand spots within the category followed by Clairol's Nice N
Easy.” Read “Hair Color Garners Broader Customer Base,” by Barbara
White-Sax. Drug Store News (3/26/2001) at
http://www.findarticles.com/cf_0/m3374/4_23/72987343/print.jhtml
"More men than ever are eschewing gray, and for a variety of reasons.
For example, according to a study conducted via the internet by
Colomer’s Just For Men in cooperation with National Family Opinion
Research, Inc. (NFO), non-gray-haired men are viewed as more
successful at dating than gray haired guys. The survey, “Great
Dating,” was conducted nationwide among 500 women ages 30-49 and 500
men ages 35-54. In four out of five instances, photos of the same man
in dark hair vs. gray hair were selected by both men and women as
appearing more attractive and “datable.”
Even more interesting is the fact that of those surveyed, both men and
women perceived the non-gray-haired men as more confident, suggesting
that a youthful appearance influences various aspects of life and is
not confined to attractiveness alone. “Luckily for men, more than 57%
of women surveyed also felt that it was acceptable for men to color
their gray hair. Nearly one-third of men stated that they have made
changes to their hair, including hairstyle and coloring, and an
additional 15% said they would be willing to do so in the future. Read
“A Man’s World: The Male Personal Care Market.” Happi.com (10/2001) at
http://www.happi.com/special/oct011.htm
Embellishing the Grey
L'Oreal introduced Gray Chic in 2000.. The seven-SKU translucent
color tone line erases yellow tints and boosts natural gray. Always
fashion forward, packaging uses age-appropriate, but fashionable
models. Read “Hair Color Garners Broader Customer Base,” by Barbara
White-Sax. Drug Store News (3/26/2001) at
http://www.findarticles.com/cf_0/m3374/4_23/72987343/print.jhtml
However, not all men are covering their gray, according to Mr. Fogg
of American Crew. The company has developed its Gray line to cater to
the man who wishes to keep, but enhance, his gray. “Because of the
nature of graying hair, it can get dry and yellowed,” Mr. Fogg said.
“Our line delivers both high performance and attractiveness for the
man who opts to cater to, rather than change, his gray hair.” Read “A
Man’s World: The Male Personal Care Market.” Happi.com (10/2001) at
http://www.happi.com/special/oct011.htm
Teen Trends
“The biggest growth (in the hair color industry) is in the 13- to
24-year old market…Hair color is a way for teens to express
themselves, and they are willing to experiment. "Permanent hair color
and products that offer special effects are currently hot in the
market," says Johnna Manca, vice president of global hair care and
hair color at Revlon. Young women “have shown an interest in very
vibrant color and in coloring effects. In fact, younger consumers have
shifted to colors so vibrant they are unnatural. For these consumers,
color is about being noticed--not covering gray….Clairol's XtremeFX,
which allows users to color or bleach chunks, strands or tips of hair,
L'Oreal's Feria and Laboratories Garnier's Nutrisse Nutricolor Masque
are all marketed specifically to younger consumers who want bold and
vibrant hues. Those new launches, which are ethnically diverse and
nongender specific, have been successful. In fact, L'Oreal's Feria was
the fourth most popular brand in the category last year. Read “Hair
Color Garners Broader Customer Base,” by Barbara White-Sax. Drug Store
News (3/26/2001) at http://www.findarticles.com/cf_0/m3374/4_23/72987343/print.jhtml
Some teens love to go to extremes with vibrant, unnatural hair
colors. Some excerpt from the article “Color Coded Hair,” by Sara
Cormery follow:
"The hair color market has exploded," said Carlene
Moffitt, spokeswoman for L'Oreal. Teenagers see hair color as "an
accessory," she says, using bright funky colors "more and more." "Hair
color has become something you can change as easy as lipstick."…. John
Robert Dale is a manager at Commander Salamander, a punk-flavored
store in Washington, DC's Georgetown shopping district. Commander
Salamander carries several brands of semi-permanent hair dyes, all in
extreme shades with names like Vampire Red and Lagoon Blue…Girls are
buying purple and red dyes, says Dale, and boys prefer the greens and
yellows. Brands like Manic Panic and Punky Colours are the most
popular. "A lot of people are doing assorted colors on the head," says
Dale, putting in large stripes of two or more different colors…..For
many teenagers, high school is a time with different pressures than
those of adults. TJ, age 16 dyes his hair white-blond. He says that he
can experiment now, because he won't later. "Now is my leisure time.
If I went for a job with colored hair, they'd look at me and laugh."
He plans one day to put on a suit and go to work. "Conformity will
always be there," he says. "I will conform one day when it is time...
conformity is a part of life to get jobs and other things you need.”
Read entire article at
http://www.pbs.org/newshour/infocus/fashion/hair.html
“18-30 Something” Trends
Clairol recently launched Herbal Essences Color, directed toward
consumers in their 20s and 30s. "The launch will include three new
iridescent blonde shades that have a pink undertone and some true red
tones that are very vibrant," said Read. The no-ammonia formula and
Herbal Essences' fragrance should play well among younger consumers,
the company expects…Pearlescent, shimmery blonde shades are a big
trend this spring. "With celebrities such as Sarah Jessica Parker
going blonde, we see a trend toward the light to dark blonde shades,"
said Tom Dean, vice president of Gamier. "It is also becoming
increasingly easier to go blonde with easy-to-use home
blonding/lightening kits such as the new Nutrisse Lightening kit we
are launching in June." L'Oreal will add three new blonde shades in
its new Feria Iridescente line extension this spring. Read “Hair Color
Garners Broader Customer Base,” by Barbara White-Sax. Drug Store News
(3/26/2001) at http://www.findarticles.com/cf_0/m3374/4_23/72987343/print.jhtml
Clairol’s markets it’s Herbal Essences True Intense Color hair dyes
to the 18 to 34 year-old crowd. Clairol is hoping its new line of
dyes…. looks like real hair. The company says its Herbal Essences Hair
Color does not contain secondary tones. “For example, many red and
brown hair color shades contain side effects in the form of
yellow-orange or blue-violet tones, Clairol says in its promotional
literature. The Herbal Essences line also has replaced ammonia, which
permanent hair dyes need to work effectively, with a substance called
monoethanolamine. "We want this brand to be a very successful brand in
the very competitive hair color market," said Andrea Davey, senior
product manager of Herbal Essences.” Read “A Market to Dye For,” by
Peter Healy. The Advocate and the Greenwich Times (5/27/2001) at
http://www.source-marketing.com/article19.shtml
Finding new customers
Retailers are launching new products to draw in customers who
presently do not use hair color. "One example would be L'Oreal Open.
They've been very successful with Feria in the past, which targets a
more trend-setting consumer. Open is going for the more subtle person.
It focuses on 'you, only better.' It might be for someone that doesn't
want as dramatic an effect as Feria offers. ... Also, Procter & Gamble
I'm sure will be spending heavily in that category." Read “Fashion
Driven Hair-care Category Stays Strong.” Drug Store News (10/8/2001)
at http://www.findarticles.com/cf_0/m3374/14_23/79252601/print.jhtml
Read “A New Hair Color Segment is Born: a low ammonia permanent hair
color” at http://www.loreal.com/us/passion/full_article.asp?id_Art=1852&id_sousrubrique=7
to see Loreal’s response to consumer desire for hair color which
closely matches their own, natural color.
Well, I hope this provides you with a good background. I searched
high and low for the particulars of your question. If you desire more
detailed information, please consider buying a "by the slice" portion
of the MarkeWatch Reports.
Don't hesitate to contact me if anything is unclear.
umiat-ga
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