Top Trends and Opportunities in Haircare, 2018

Sumit Chopra, Director of Research and Analysis

Nov, 2018

1
Index

1 About GlobalData

2 The Global Haircare Landscape

3 Innovation trends

4 Drivers

5 Opportunities for haircare brands

6 Looking ahead – where next for haircare?

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GlobalData at a glance
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data, expert analysis and innovative solutions delivered through a single platform

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GlobalData – Trend Insight

Innovation trends: GlobalData’s TrendSights framework

4
Index

1 About GlobalData

2 The Global Haircare Landscape

3 Innovation trends

4 Drivers

5 Opportunities for haircare brands

6 Looking ahead – where next for haircare?

5
 Global Cosmetics & Toiletries Industry 2017
The APAC C&T industry was the largest region in 2017 with a value of US$ 119.9 bn

Western Eastern
Europe Europe

$71.8bn $18.6bn
+22% +5.7%
America
Asia
$107.1bn +32.8% Middle Pacific
East &
Africa $119.9bn +36.7%

$9.1bn
+2.8%

$326.5bn
+29.5%

Source: GlobalData's Market Data

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The global haircare market is poised for growth
Haircare market value 2017 ($) and CAGR 2017–22 (%)

Western Eastern
Europe Europe
North
America
$13bn $4bn +3.6%
+3.2%
$14bn +3.7%
Asia
Middle Pacific
East &
Africa $24.7b +5.2%
Latin
America n
$1.3b +6.2%
$70bn
+4.7%
$13bn +3.6%

Shampoo Conditioner Hair colorants

$31bn $17bn $12bn
+5.2% +5.1% +4.5%
High Growth
Segments

Source: GlobalData's Market Data

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Introduction
The impact on health and wellbeing has the strongest influence on beauty and grooming purchases.
Haircare products, is the most influential on consumer purchasing decisions.

Targeting the silver

Natural Wave Being Unique Making it simple
segment

Wellbeing; Natural & Pure; Novel & Experiment; Sensory Fusion; Time Scarcity; Efficient & Aging population; Image
Personalized Guided Health; Experimentation; Experience Effective; Out-of-Home; Consciousness;
Experimentation Economy; Customization Simplicity; On-the-Go Customization

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Index

1 About GlobalData

2 The Global Haircare Landscape

3 Innovation trends

4 Drivers

5 Opportunities for haircare brands

6 Looking ahead – where next for haircare?

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Trend 1: Natural wave
Leveraging the positive image of real ingredients to remain competitive in the hair care market

Global: Top five ingredients consumers perceive to be effective in

Global: consumers who give high attention to the ingredients used beauty and grooming products, 20171
when buying beauty and grooming products, by generation, 20171 77%
68%
66%
63%
60% Green tea and oils Vitamin C
(natural/essential oils )
Oxygen
Fruit extracts
Coconut oil

Global: Top 5 fragrances consumers find most appealing in the

haircare category , 20171

46% of consumers 56% of 21% Fresh

maintain that natural consumers are interested and
ingredients would make
them more likely to
choose one brand over
+ actively buying natural beauty
and grooming products, and a
further 30% are interested
17% Un-fragranced
14% Botanical/herbal
another1 but not actively buying them2
13% Floral
11% Fruit

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Trend 1: Natural wave
Examples we like: using ingredients associated with natural image
Bumble and Bumble Bb
Hairdresser’s invisible oil balm-to-
oil pre-shampoo masque
This pre-shampoo masque features
the combinations of six natural oils,
coconut oil, argan oil, macadamia nut
oil, sweet almond oil, safflower seed
oil, and grapeseed oil. Suggested to
be used once a week, the balm is
silicon free and, by featuring natural
ingredients, will likely appeal to
health-oriented consumers.
Dp Hue apple cider vinegar scalp
scrub with pink Himalayan sea salt,
US
This scalp scrub features natural
ingredients such as apple cider
vinegar and pink Himalayan sea salt
to eliminate the dead skin cells and
rebalance the scalp’s pH.
Source: GlobalData’s Product Launch Analytics
Yungo The Premium birds’ nest
nourishing shampoo, China
Birds’ nest is a premium and
expensive delicacy in Chinese cuisine.
The familiarity with this natural
ingredient, and its broader
association with luxury and health, is
likely to appeal to those wanting to
upgrade their hair washing regime
while experimenting with new
ingredients.
Hair & Care fruit oils for hair in
orange and green varieties, India
This oil is a combinations of oil and
fruits in an effort to combine the
nourishing effect of oil with fruit
fragrances.
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 Trend 2: Being unique
Younger generations demand bespoke haircare solutions

Global: Top 3 aspects consumers believe would make a

Customization is highly appealing among beauty or grooming product feel tailored to their needs 20172
younger consumers

Co-creation is a concept to capitalize on

Brands exploit the Asian trend to align with

consumer demand for customization

Millennials and Gen X are key generation groups to

target

Global: Consumer interest about "Beauty/ grooming products specifically targeted towards fitness and
exercise occasions”, 2017 1

Source: [1] GlobalData 2017 Q1 global consumer survey;

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Trend 2: Being unique
Examples we like: tailoring products based on consumer’s needs

Sephora Sleeping Mask in rose, Sportmedics shampoo for all types

coconut, shea butter, and acai
varieties, UK
Sephora’s launch this summer has
helped to introduce hair masks in
women’s beauty routines in Europe.
The mask promises to improve the
hair appearance and texture by
literally “sleeping on it”. Each variety
carries on specific benefits from
repairing hair fibers to protecting
color.
of sports, Spain
The company has developed a
range of haircare products designed
for all type of sport. The featured
one is specific for water sports and
it comes in two varieties, shampoo
with conditioner for women and
shower gel with shampoo for men.
Both varieties contain nutritional
formula with vitamin to replenish
the lost of mineral salts.

SachuaJuan hair repair gel over Function of Beauty, USA Sportmedics shampoo for all types
night, UAE of sports, Spain

Coloring and styling treatments
are very likely to damage hair,
resulting in an aging appearance.
The gel promises to strengthen
the hair while sleeping due to
the concentration of
sophisticated ingredients such as
red algae variants rhodophycea
(indicated to strengthen the hair
from inside).
Source: GlobalData’s Product Launch Analytics
This is a relatively young start up
which has successfully introduced
in-depth customization in the
haircare category. The company
offers over 12 billion possible
combinations of factors, (formula,
fragrance, and labels) to get the
final customized haircare product
which consumers help to create by
answering a number of questions
on hair needs and preferences.
The gel-based formula increases
the efficacy of the hair washing
function. Promising to rescue hair
cuticles by restoring natural hair
fat as well as proteins, the
product is meant to be used
between shampoo and
conditioner steps, creating a new
step in the haircare routine.
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 Trend 3: Make it simple
Time-scarce consumers demand quick to use, convenient, and simplified haircare products

Global: Beauty/grooming brands are tackling the following issue:

“Simplifying product choice”, 20171
Time-strapped consumers’ demand is
becoming more sophisticated in the
haircare space. Seeking out on-the-go
products to quick address hair style
without compromising on quality,
busy consumers still ask brands for
simplicity

An increasing number of consumers rely on Opportunities lie for brands in simplifying

time-saving products their product choices for busy consumers

Source: [1] GlobalData 2017 Q1 global consumer survey;

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Trend 3: Make it simple
Examples we like: simplifying the haircare routine

L'Oréal Paris Elseve Extraordinary
Oil cleansing cream, Japan
This 2-in-1 product is positioned as
both a no-foam shampoo and as a
cleansing cream, and does not
require a conditioner after use. The
gentle cleansing formula is free from
sulfates and surfactants and is
enriched with “flower extracts”
which could appeal to consumers
seeking to experiment with haircare
products.
Living Proof Perfect Hair Day in-
shower styler, US
The formulation of this product
simplifies the hair styling routine as it
is recommended for application
while having a shower. The product is
suitable for busy consumers and for
those who want to avoid using
heated styling devices and the
damage associated with them to the
hair.

Bad, Baby dry shampoo pen, Bumble and Bumble, Bb. color stick, Nunzio Saviano dry shampoo
US US blotting sheets, US

A dry shampoo in a pen-sized This portable pencil offers a hair Inspired by blotting papers to
aerosol that is TSA color touch-up on-the-go, control oily facial skin, these
(transportation security promising to cover grey hair, portable rice paper sheets
administration) travel refresh roots, and fill in sparse are designed to absorb oil
approved offers a portable and spaces in an easy-to-use and from the hair. The portable
save-space solution for on-the- mess free application. The free packaging could be a
go consumers. The free from from parabens and sulphates replacement to the travel-
parabens, sulphates and product allows consumers to size shampoo as the flat
phthalates formulation extend time between trips to the design saves space in the
increases the product’s appeal. salon for hair color with a quick bag.
and temporary touch-up.
Source: GlobalData’s Product Launch Analytics
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 Trend 4: Targeting the silver segment
Europe and North American consumers have an accepting attitude while Asian still look to prevent
the aging natural process

Brands should align their offering with silver consumers’ demand for pro-aging
products
• Haircare brands should therefore seek to engage consumers through offerings
which target specific hair issues such as thinning hair, dull hair, and lack of hair
volume which are often related to aging.
• Bearing in mind the regional discrepancy about aging, brands need to capture
regional nuances
• For example, pro-aging products that highlight or strengthen white or grey
hair will resonate well with European consumers where it is crucial for brands
to persuade consumers about the effectiveness of anti-aging items. In
contrast formulations that conceals white hair may have a better resonance in Scepticism about the effectiveness of
Asia. antiaging products have driven silver
consumers’ demand for haircare products to
manage the natural aging process.

Global: Consumers concern about the following hair issues, 55+ years old, 2017

Source: [1] GlobalData 2017 Q1 global consumer survey;

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Trend 4: Targeting the silver segment
Examples we like: embracing the aging natural process
Davines alchemic conditioner for
natural and colored hair, Italy
Designed for white hair and for salt
and pepper hair, this conditioner is a
part of a haircare range including a
shampoo, promising to defeat the
yellow shades of natural and colored
hair, leaving a shining final effect.
Kracie Himawari oil in shampoo,
Hong Kong
This silicon- and SLS-free shampoo
contains natural organic ingredients
saying to tackle the three aging-
related hair problem: thin, weak, and
damaged. The product will entice
those Asian consumers seeking out a
daily solution to treat aging hair.
Source: GlobalData’s Product Launch Analytics [1] Independent, 2016
Touch of Grey hair colorant, US
This hair colorant promises to “get
rid of some grey, not all” reducing
white hair without totally covering it.
The final result gives a natural and
mature look that usually comes with
age, highlighting and improving an
aspect of aging instead of concealing
it completely.
Kenra Platinum snail anti-aging
shampoo, US
The "youth prolonging shampoo" is
described as enriched with snail
essence, claimed to be a highly
concentrated blend of proteins
proven to fight the ten signs of aging
hair: dulling, thinning, breakage, frizz,
dryness, elasticity, porosity, scalp
irritation, unmanageable hair, and
coarse texture.
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Index

1 About GlobalData

2 The Global Haircare Landscape

3 Innovation trends

4 Drivers

5 Opportunities for haircare brands

6 Looking ahead – where next for haircare?

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What is driving the change in consumer behavior?
A more proactive consumers’ attitude and behavior impact the dynamics of Haircare Industry.
‘Brands keeping pace to improve the social interaction with final consumers’

Pressure of social media

Holistic approach to
Image consciousness
beauty

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Selfie era driving change in beauty regimen

Consumers are taking a more holistic approach to beauty and wellbeing

Global: "My looks and appearance in general are

important /very important to me"

2017

2014 78%

58%

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Social media is putting pressure on hair appearance

33%
of global consumers claim social media has
made them more self-conscious about
their appearance

#glowinthedarkhair

106m followers

20m followers

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Shift from traditional haircare regime towards more
sophisticated haircare regime
Shampoo
Pre
Shampoo

Shampoo
After Style
Condition

Style Condition

Style

Pre style Serum

Mask

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Index

1 About GlobalData

2 The Global Haircare Landscape

3 Innovation trends

4 Drivers

5 Opportunities for haircare brands

6 Looking ahead – where next for haircare?

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Four key opportunities to explore within this space

K-haircare Customization

"Make it smart" Waterless solutions

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K-haircare is gaining prominence globally
K-beauty skincare is driving multi-step haircare -- Migrating from the skincare space, the South
Korean trend is very likely to gain ground among millennials, gen X, and female consumers

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K-beauty inspired ingredients and haircare steps

Kenra Professional Snail Anti-Aging
Shampoo, US
 Enriched with snail essence which is a
highly concentrated blend of proteins
 Designed to fight all 10 signs of aging hair
Skinfood Argan Oil Silk Plus Hair Essence,
France
 Composed of argan oil and 18 different
kinds of amino acids
 Helps repair hair damaged from heat and
coloring

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Consumers like being in control of products they use
Co-creating and DIY haircare solution is pushing the concept of customization a step further

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One size does NOT fit all in haircare
DIY haircare kits for customizing Tailored products to suit individual hair
products at home needs

Oleum Vera Do-It-Yourself Hair Kit, Prose Customized Haircare, US

Canada
 Provides assessment of hair needs
 Do-it-yourself oil treatments, mask and goals using an online quiz
and rinses  Creates products based on
 List of natural ingredients provided individual needs
 Measurement tools  One-on-one consultation guidance
with a certified Prose stylists

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Tech advances create new innovation opportunities
In a hyper-connected, technology-enabled society, consumers seamlessly integrate the use of multiple
technologies into their lives and buying behavior.

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Using high-tech to provide tailored haircare solutions
Partnering smartphones with beauty tools Using high-tech for tailored haircare
solutions

Kérastase Hair Coach Brush Powered by SalonLab Analyzer, Germany

Withings, US
 Provides information on hair quality and brushing  Sensor-based handheld device which measures
patterns hair moisture, quality, and color
 Measures the force applied to the hair when  Uses real-time data
brushing  Provides hyper-personalized haircare products
 Data sent by Wi-Fi or Bluetooth to users phone
 Offers personalized tips, and Kérastase product
recommendations

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Benefiting from instant results anywhere
Targeting new “on-the-go” function, companies offer portable packaging and waterless haircare
formulation to consumers heavily relying on time-saving products and services.

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Benefiting from instant results anywhere
Targeting time-poor consumers with "waterless" solutions

OUAI Anti-frizz Hair Sheets, US
 Portable frizz defying sheets help fight frizzy
static-prone hair
 Made from hemp paper and enriched with
conditioning coconut oil and moisturizing shea
butter
L'Oréal Paris Magic Retouch Instant Root
Concealer Spray, Australia
 Root concealer allows users to instantly cover up grey
hairs
 While it is temporary it offers a quick fix solution to
time-pressed consumers

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Index

1 About GlobalData

2 The Global Haircare Landscape

3 Innovation trends

4 Drivers

5 Opportunities for haircare brands

6 Looking ahead – where next for haircare?

33
Looking ahead: where next for haircare?

DNA-based Day and night

Athleisure hair
haircare haircare

Individualistic consumers Offering day and night Developing hair products

seeking haircare haircare treatment for to suit consumers
products tailored to their more effective results. leading active lifestyles.
DNA sample.

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