HAIR CARE IN PAKISTAN - ANALYSIS

Country Report | May 2023

KEY DATA FINDINGS Market Sizes

Retail value sales rise by 24% in current terms in 2022 to PKR77.8 billion Sales of Hair Care
2-in-1 products is the best performing category in 2022, with retail value sales rising Retail Value RSP - PKR billion - Current - 2008-2027
by 26% in current terms to PKR7.5 billion
Unilever Pakistan Ltd is the leading player in 2022, with a retail value share of 33%
78 Forecast
200
Retail sales are set to rise at a current value CAGR of 13% (2022 constant value CAGR
of 5%) over the forecast period to PKR144 billion
150
2022 DEVELOPMENTS

High inflation dampens volume sales

100
While in 2022 Pakistan largely put the disruptions caused by the pandemic behind it,
there were other challenges. Massive devaluation of the Pakistani rupee against major
world currencies and spiralling double-digit inflation, partly caused by the energy crisis
stemming from the war in Ukraine, led to a dismal economic picture. In addition, 50
catastrophic floods left hundreds of thousands in need of emergency aid. That being
said, there was modest constant value and volume growth for hair care, which was
supported by continuing population growth. 0
2008 2022 2027
Multinationals still dominate
The competitive landscape of hair care continued to be dominated in retail value share
Sales Performance of Hair Care
terms by large multinationals in 2022. Unilever continued to be the clear leader,
% Y-O-Y Retail Value RSP Growth 2008-2027
accounting for nearly a third of value sales, with Procter & Gamble also having a
double-digit value share. Other leading multinationals are L’Oréal Groupe, Abbott and
Coty. These companies. have established strong reputations by offering value for
money products and spending on marketing and promotional campaigns to build their
23.8% Forecast
25%
brands over years. They also benefit from economies of scale, due to extensive
distribution. In addition, these brands have high recognition as they are present across
multiple beauty and personal care product areas. 20%

2-in-1 products register highest current value growth

15%
2-in-1 products registered the highest current value growth. This healthy performance
was mainly due to consumers perceiving 2-in-1 products as being better value for
money. However, 2-in-1 products are also considered more convenient and make hair 10%
care less time consuming, which is an added benefit, as people lead increasingly busier
lifestyles.
5%
PROSPECTS AND OPPORTUNITIES

Moderate outlook over forecast period 0%

2008 2022 2027

Hair care will register moderate constant value growth over the forecast period.
Continuing population growth will support volume sales. Moreover, ongoing
urbanisation, the rising number of women in employment and the growth of modern
retailing will result in more consumers gaining access to a wider range of hair care
products. That being said, if inflation continues to be high, players will need to offer
promotions and discounts to support value sales.

Product launches expected in the natural and organic sphere

New product launches and effective advertising tend to be the driving forces in hair
care. Over the forecast period, there will be development of products that offer value-
added benefits to consumers, such as vitamins, natural ingredients and different
extracts that tie in with the growing health and environmental consciousness among
consumers. For instance, there will be increased demand for natural and organic
products that contain fewer chemical components such as parabens.

Greater attention to personal image to boost appeal of specialised hair

care options
More niche products such as medicated shampoos and hair loss treatments are
expected to register higher constant value growth. Growth rates will also be bolstered

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as sales continue to emerge from a low base. Moreover, improvements in purchasing
power and distribution are set to make these products more affordable and accessible,
Sales of Hair Care by Category
Retail Value RSP - PKR billion - Current - 2022 Growth Performance
while marketing activities, especially testimonial-based campaigns, help to convince
more consumers of their efficacy.
2-in-1 Products
7.5
Colourants
13.5
Conditioners and Treatments
12.8
Hair Loss Treatments
0.1
Perms and Relaxants
-
Salon Professional Hair Care
-
Shampoos
41.6
Styling Agents
2.2
0% 15% 30%

HAIR CARE 77.8 CURRENT % CAGR % CAGR

YEAR % 2017-2022 2022-2027
GROWTH

Competitive Landscape

Company Shares of Hair Care

% Share (NBO) - Retail Value RSP - 2022

Unilever Pakistan Ltd 32.6%

Procter & Gamble Pakista... 26.8%
L'Oréal Groupe 6.7%
Abbott Laboratories Paki... 1.4%
Coty Inc 1.3%
Keune Haircosmetics BV 1.0%
Olivia Cosmetics Pvt Ltd 0.9%
United Trading Society 0.8%
Forvil Cosmetics (Pvt) L... 0.5%
Oriflame Cosmetics Pakis... 0.3%
Premier Agencies 0.2%
Others 27.5%

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 Brand Shares of Hair Care
% Share (LBN) - Retail Value RSP - 2022

Sunsilk 23.3%
Head & Shoulders 13.9%
Pantene 12.9%
Lifebuoy 5.0%
Dove 3.0%
Garnier Fructis 2.4%
Selsun 1.4%
Koleston 1.3%
L'Oréal Studio Line 1.3%
Clear 1.1%
Keune 1.0%
Elvive 1.0%
L'Oréal Total Repair 0.9%
Olivia 0.9%
L'Oréal Paris 0.8%
Kalakola 0.8%
Bio Amla 0.5%
Garnier Men 0.2%
bc bonacure 0.2%
Others 28.0%

5-Year Trend
Increasing share Decreasing share No change

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