The U.S. hair-care market is growing steadily with no signs of slowing down, says a report that delved into consumer data supplied by 30 major brands including L'Oréal, Procter & Gamble, The Estée Lauder Companies, and Unilever.
The report by Research and Markets, “U.S. Hair Care Market – Focused Insights 2024-2029” predicts a compound annual growth rate of 1.1 percent for hair products through 2029, from $13.6 billion to $14.4 billion.
Brands are quickly adopting advanced technologies such as smart tools and AI to personalize and enhance the buying experience for hair-care consumers. They're also leaning more heavily on social media influencers to create traction among Gen Z shoppers, the report says.
Here are the 7 biggest takeaways from the report:
HOTTEST PRODUCT: Shampoo.
Shampoo continues to hold the largest market share (35+ percent), driven by consumers increasingly seeking versions tailored to specific hair needs.
HOTTEST DEMOGRAPHICS: Gen Z/ Female Customers
Gen Z is the fastest-growing market segment thanks to its early adoption of new trends and an inclination toward products that are “bold, expressive, and unique.”
Female consumers dominate the market share across age divisions, as they “tend to have highly individualized routines, often using multiple products.”
HOTTEST DISTRIBITION CHANNEL: In-Store.
Nope, online has not taken over. “Traditional brick-and-mortar stores remain vital for the distribution of hair-care products, as many consumers value the in-store shopping experience.” Product trials and immediate access are the two key benefits, the report says.
HOTTEST PRICE POINT: Premium.
Luxury products show the highest growth “as consumers are willing to invest in high-quality, often salon-inspired formulations that deliver enhanced benefits.
“These products appeal to those seeking a professional, salon-like experience at home, with luxurious packaging, refined scents, and concentrated formulas that justify their higher price.”
HOTTEST TECH: Scalp Imaging.
Tools that can “help customers understand their hair and scalp needs on a deeper level” are quickly growing in salons and retail settings to analyze the cause of issues such as scalp dryness, dandruff, and thinning hair.
HOTTEST CATEGORY: Scalp Care.
“Traditional hair care routines often overlooked the scalp, but today, brands are educating consumers on the importance of scalp health, leading to a surge in demand for products specifically formulated to cleanse, nourish, and balance the scalp.”
HOTTEST CONSUMER ISSUE: Allergens.
Consumers showed an uptick in discernment about products containing allergens such as sulfates, preservatives, parabens, and fragrances.
“For companies, balancing product efficacy with allergen-free formulations is becoming a key focus to retain customer trust and meet the needs of an increasingly ingredient-conscious market.”
Brands surveyed for this report were:
- L'Oréal
- Procter & Gamble
- Unilever
- Beiersdorf
- The Estée Lauder Companies
- Amway
- Kao Corporation
- Henkel
- Herbalife
- Moroccanoil
- Shiseido
- John Paul Mitchell Systems
- Revlon
- Tropical Products
- The Honest Company
- Johnson & Johnson
- Olaplex
- Bread Beauty Supply
- adwoa beauty
- Thank God It's Natural
- Virtue Labs
- Design Essentials
- PATTERN BEAUTY
- Not Your Mother’s
- HASK
- Amika
- Function of Beauty
- Hairfinity
- Scruples
- The Mane Choice