Global Natural Hair Care Market: Growing awareness about the advantages of natural hair care items is one of the key components boosting market development.

Published Date: 14/05/2021

The global natural hair care product market size was valued at USD 9.18 billion in 2020 and is expected reach USD 12.7 billion to grow at a compound annual growth rate (CAGR) of 4.7% from 2020 to 2027. Rising awareness related to the benefits of natural hair care products is one of the key factors fueling market growth.

Most of the natural hair care products contain antioxidants that contain Vitamin E, which provides nourishment to the scalp and promotes hair growth. Detrimental effects of using chemical-based shampoos and conditioners, such as bad hair quality and rough scalp, have goaded consumers to opt for natural products. Consumers have become ingredient savvy and they avoid picking products with sulphates, parabens, mineral oil, and alcohol, thus boosting the demand for natural hair care products.

Millennials are one of the prominent consumer segment for natural hair care products. According to the Asia Cosmetics report, in 2017, globally, close to 56% of millennials and Gen X actively bought natural beauty and grooming products owing to growing consciousness regarding chemical-free products. Moreover, close to 40% of the change in the buying decision of the consumers has inflected because of natural ingredient listing on the packaging. Shifting consumer perception towards natural ingredient based products in the cosmetic and personal care domain is expected to boost demand for natural hair care products in the market.

The women segment led the market and accounted for 72.6% share of the global revenue in 2019. This segment is expected to maintain the lead over the forecast period owing to the growing preference for natural hair care products to confront hair related issues, such as dull hair, hair fall, hair colouring, damaged hair, and split ends. Hair is considered to be one of the most precious body parts by women, which makes them buy hair care products with the utmost attention. According to the NPD report 2018, 50% of American women prefer natural products and are conscious about purchases when it comes to scalp and skin application.

Offline distribution channels dominated the market and accounted for 79.1% share of the global revenue in 2019. Brick and mortar stores including independent brand stores, departmental stores, multi-brand outlets, and hypermarkets are quick to launch popular natural beauty products in the market and offer exclusive deals to their customers, thereby boosting the sale growth. These stores have been focusing on offering natural and chemical-free category set-up to pique customers’ interest and provide them with a facility to choose from numerous brands before making a purchase. For instance, in 2018, the Sephora premium outlet launched a clean beauty category section, which excluded those which are free from parabens, sulphates, and phthalates.

The natural hair care market is segmented on the basis of end-user, distribution channel and region. On the basis of distribution channel Online, Offline. On the basis of end-user Men, Women.

Europe dominated the market for natural hair care products and accounted for 38.2% share of the global revenue in 2019. Growing demand for natural products and cosmetic brands that are replacing synthetic chemicals with natural ingredients is a key factor fueling the market growth in the region. Europe, being the largest beauty and cosmetics region, opens doors of opportunities for various natural cosmetic manufactures. According to Cosmetics Europe, a European trade association for the cosmetics and personal care industry, in 2018, the beauty and cosmetics market size was valued at USD 94.0 billion. The high concentration of manufacturers in European countries, such as Germany and France, is expected to drive innovation in natural hair care products.

Key companies are: Procter & Gamble; NatureLab Tokyo; Estee Lauder; Mama Earth; St. Botanica; Bollati; John Master Organics; Phyto Botanical Power; Amazon Beauty Inc.; Organic Harvest.