Top Trends and Opportunities in Haircare, Sumit Chopra, Director of Research and Analysis. Nov, 2018
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1 Top Trends and Opportunities in Haircare, 2018 Sumit Chopra, Director of Research and Analysis Nov,
2 Index 1 About GlobalData The Global Haircare Landscape Innovation trends Drivers Opportunities for haircare brands 6 Looking ahead where next for haircare? 2
3 GlobalData at a glance 4,000 of the world's largest companies make better and more timely decisions thanks to our unique data, expert analysis and innovative solutions delivered through a single platform Our Solutions GlobalData provides a range of ways that clients can access our data & insights to meet their individual business needs: Intelligence Center Consulting Services Reports Our Industry Coverage Our services cover five primary industries : Consumer Retail Technology Healthcare Financial Services Our Value Proposition We empower clients to decode the uncertain future they face by providing: Unique data Expert analysis Innovative solutions One platform Our Expertise Market Insights Market Forecasts Competitive Intelligence Consumer Insights Innovation & New Product Development Strategic Planning Marketing Channel and Sales Management Our clients: 3
4 GlobalData Trend Insight Innovation trends: GlobalData s TrendSights framework 4
5 Index 1 About GlobalData The Global Haircare Landscape Innovation trends Drivers Opportunities for haircare brands 6 Looking ahead where next for haircare? 5
6 Global Cosmetics & Toiletries Industry 2017 The APAC C&T industry was the largest region in 2017 with a value of US$ bn Western Europe Eastern Europe America $71.8bn $18.6bn +22% +5.7% $107.1bn +32.8% Middle East & Africa Asia Pacific $119.9bn +36.7% $9.1bn +2.8% $326.5bn +29.5% Source: GlobalData's Market Data 6
7 The global haircare market is poised for growth Haircare market value 2017 ($) and CAGR (%) North America Western Europe $13bn +3.2% $4bn Eastern Europe +3.6% $70bn $14bn +3.7% +4.7% Latin America $13bn +3.6% $1.3b Middle East & Africa +6.2% $24.7b n Asia Pacific +5.2% High Growth Segments Shampoo Conditioner Hair colorants $31bn +5.2% $17bn +5.1% $12bn +4.5% Source: GlobalData's Market Data 7
8 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. Natural Wave Being Unique Making it simple Targeting the silver segment Wellbeing; Natural & Pure; Personalized Guided Health; Experimentation Novel & Experiment; Sensory Fusion; Experimentation; Experience Economy; Customization Time Scarcity; Efficient & Effective; Out-of-Home; Simplicity; On-the-Go Aging population; Image Consciousness; Customization 8
9 Index 1 About GlobalData The Global Haircare Landscape Innovation trends Drivers Opportunities for haircare brands 6 Looking ahead where next for haircare? 9
10 Trend 1: Natural wave Leveraging the positive image of real ingredients to remain competitive in the hair care market Global: consumers who give high attention to the ingredients used when buying beauty and grooming products, by generation, Global: Top five ingredients consumers perceive to be effective in beauty and grooming products, % Coconut oil 63% Fruit extracts 66% Oxygen 68% 77% Green tea and oils Vitamin C (natural/essential oils ) Global: Top 5 fragrances consumers find most appealing in the haircare category, % of consumers maintain that natural ingredients would make them more likely to choose one brand over another % of consumers are interested and actively buying natural beauty and grooming products, and a further 30% are interested but not actively buying them 2 21% 17% 14% 13% Fresh Un-fragranced Botanical/herbal Floral 11% Fruit 10
11 Trend 1: Natural wave Examples we like: using ingredients associated with natural image Bumble and Bumble Bb Hairdresser s invisible oil balm-tooil 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. 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. 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. 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. Source: GlobalData s Product Launch Analytics 11
12 Trend 2: Being unique Younger generations demand bespoke haircare solutions Customization is highly appealing among younger consumers Global: Top 3 aspects consumers believe would make a beauty or grooming product feel tailored to their needs 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, Source: [1] GlobalData 2017 Q1 global consumer survey; 12
13 Trend 2: Being unique Examples we like: tailoring products based on consumer s needs Sephora Sleeping Mask in rose, 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. Sportmedics shampoo for all types 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 night, UAE 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 Function of Beauty, USA 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. Sportmedics shampoo for all types of sports, Spain 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. 13
14 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, 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 time-saving products Opportunities lie for brands in simplifying their product choices for busy consumers Source: [1] GlobalData 2017 Q1 global consumer survey; 14
15 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 inshower 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, US A dry shampoo in a pen-sized aerosol that is TSA (transportation security administration) travel approved offers a portable and save-space solution for on-thego consumers. The free from parabens, sulphates and phthalates formulation increases the product s appeal. Bumble and Bumble, Bb. color stick, US This portable pencil offers a hair color touch-up on-the-go, promising to cover grey hair, refresh roots, and fill in sparse spaces in an easy-to-use and mess free application. The free from parabens and sulphates product allows consumers to extend time between trips to the salon for hair color with a quick and temporary touch-up. Nunzio Saviano dry shampoo blotting sheets, US Inspired by blotting papers to control oily facial skin, these portable rice paper sheets are designed to absorb oil from the hair. The portable packaging could be a replacement to the travelsize shampoo as the flat design saves space in the bag. Source: GlobalData s Product Launch Analytics 15
16 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 Asia. Scepticism about the effectiveness of 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; 16
17 Trend 4: Targeting the silver segment Examples we like: embracing the aging natural process Davines alchemic conditioner for natural and colored hair, Italy Touch of Grey hair colorant, US 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. 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. Kracie Himawari oil in shampoo, Hong Kong This silicon- and SLS-free shampoo contains natural organic ingredients saying to tackle the three agingrelated hair problem: thin, weak, and damaged. The product will entice those Asian consumers seeking out a daily solution to treat aging hair. 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. Source: GlobalData s Product Launch Analytics [1] Independent,
18 Index 1 About GlobalData The Global Haircare Landscape Innovation trends Drivers Opportunities for haircare brands 6 Looking ahead where next for haircare? 18
19 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 Image consciousness Holistic approach to beauty 19
20 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" % 58% 20
21 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 21
22 Shift from traditional haircare regime towards more sophisticated haircare regime Shampoo Pre Shampoo After Style Shampoo Condition Style Condition Style Pre style Serum Mask 22
23 Index 1 About GlobalData The Global Haircare Landscape Innovation trends Drivers Opportunities for haircare brands 6 Looking ahead where next for haircare? 23
24 Four key opportunities to explore within this space K-haircare Customization "Make it smart" Waterless solutions 24
25 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 25
26 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 26
27 Consumers like being in control of products they use Co-creating and DIY haircare solution is pushing the concept of customization a step further 27
28 One size does NOT fit all in haircare DIY haircare kits for customizing products at home Tailored products to suit individual hair needs Oleum Vera Do-It-Yourself Hair Kit, Canada Do-it-yourself oil treatments, mask and rinses List of natural ingredients provided Measurement tools Prose Customized Haircare, US Provides assessment of hair needs and goals using an online quiz Creates products based on individual needs One-on-one consultation guidance with a certified Prose stylists 28
29 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. 29
30 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 Withings, US Provides information on hair quality and brushing patterns Measures the force applied to the hair when brushing Data sent by Wi-Fi or Bluetooth to users phone Offers personalized tips, and Kérastase product recommendations SalonLab Analyzer, Germany Sensor-based handheld device which measures hair moisture, quality, and color Uses real-time data Provides hyper-personalized haircare products 30
31 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. 31
32 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 32
33 Index 1 About GlobalData The Global Haircare Landscape Innovation trends Drivers Opportunities for haircare brands 6 Looking ahead where next for haircare? 33
34 Looking ahead: where next for haircare? DNA-based haircare Day and night haircare Athleisure hair Individualistic consumers seeking haircare products tailored to their DNA sample. Offering day and night haircare treatment for more effective results. Developing hair products to suit consumers leading active lifestyles. 34
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