Luxury Hair Care Market Size, Share & Industry Analysis, By Type (Hair Oil & Serums, Shampoo, Hair Colorants, Conditioners, and Others), By Distribution Channel (Supermarkets/Hypermarkets, Pharmacy/Drug Stores, Specialty Stores, and Online Retailers), By End-user (Men and Women), and Regional Forecast, 2024-2032

The global luxury hair care market size was valued at USD 18.20 billion in 2023 and is projected to grow from USD 19.21 billion in 2024 to USD 32.39 billion by 2032, exhibiting a CAGR of 6.75% during the forecast period. North America dominated the luxury hair care market with a market share of 33.74% in 2023.

The major driving factor for the market growth is the rising preference of individuals for effective and personalized hair care products that are designed to work on specific hair conditions. Moreover, rising disposable income and upgrading lifestyle standards are pushing individuals to spend on beauty and personal care, which in turn is boosting the market share. Hair's growing popularity and the presence of videos & guides, tutorials, and pictures of stylish hairstyles and complex haircare routines are the key factors fostering the market growth.

Luxury hair care brands are gaining traction in emerging regions, such as Asia Pacific, since these markets display high growth potential in the coming years. Rapidly emerging economies, such as India, are set to grow rampantly owing to factors, such as growing awareness and the importance of personal grooming, rising disposable income, and increased urbanization. This, in turn, presents substantial opportunities for new entrants.

Luxury hair care is a market segment of the broader beauty and personal care industry that caters for consumers preferring premium products for their hair care needs. Luxury hair care products are formulated with superior-quality ingredients and advanced technologies to offer unique benefits for hair health and appearance. It includes various branded products, such as shampoos, conditioners, hair oils & serums, hair masks, hair mousse, hair wax and styling sprays, perms and relaxants, and hair creams & gels, among many others. The market is characterized by its focus on exclusivity, finest ingredients, advanced formulations, and often high price points compared to mass-market alternatives. These products are designed to address a variety of hair concerns, provide a luxurious experience and are typically targeted at affluent consumers.

The outbreak of COVID-19 had a significant impact on the market owing to the global lockdown. With social distancing measures and economic uncertainties, consumer behavior shifted, leading to changes in demand, supply chain disruptions, and altered marketing strategies. Initially, the market experienced a decline in demand as consumers prioritized essential items and limited their hair spending. With salons closed and social gatherings restricted, the demand for high-end hair care products decreased. However, as people spent more time at home, the focus shifted to self-care, leading to a surge in demand for home-use luxury hair care products.

Luxury Hair Care Market Trends

Personalization and Natural & Organic Formulations are Outperforming Mass Hair Care Products

The latest trends in luxury hair care focus on clean, sustainable, and high-performance ingredients. Brands are increasingly emphasizing natural and organic formulations that are free from harsh chemicals, such as sulfates, parabens, and silicones. Additionally, there is growing interest in products that cater to specific hair concerns, such as scalp health, hydration, and damage repair. Many luxury hair care brands are also incorporating advanced technologies, such as molecular science and biotechnology, to create innovative and effective solutions for hair care.

Another significant trend is the focus on personalized hair care solutions. Brands are offering customizable products tailored to individual hair types, textures, and concerns. This personalization is often achieved through advanced technology that analyzes the consumer’s hair and creates bespoke formulations. In terms of ingredients, there is a growing interest in products enriched with botanical extracts, vitamins, and minerals known for their nourishing and strengthening properties. Consumers are seeking products that not only deliver effective results but also promote overall hair health.

Luxury Hair Care Market Growth Factors

Increased Spending and Emphasis on Self-Pampering and Personal Grooming to Boost Market Growth

One of the key drivers of the market is the growing consumer demand for products that not only offer effective results but also a sense of indulgence and pampering. In recent years, there has been a noticeable shift in consumer preferences toward products that distinguish premium experiences, and this trend has extended to the hair care category. Consumers are increasingly willing to invest in high-end care products that deliver on their promises and evoke feelings of luxury and self-care.

Additionally, engaging in self-care routines has been clinically proven to lower or eliminate anxiety and depression, improve concentration, reduce stress, minimize frustration and anger, increase happiness, and improve energy. All of these aspects have become a priority for the present generation, which encourages them to spend on luxury items, driving market growth.

Rising Prevalence of Hair Concerns to Aid Market Growth

The increasing prevalence of hair-associated conditions among consumers is boosting market growth. Factors, such as rising pollution levels, stress, unhealthy lifestyles with nutritional deficiencies, genetically inherited hair abnormalities, ageing, and excessive use of chemically made styling products & hair treatments are all at the root cause of growing hair concerns. Consequently, this has led to an increase in demand for high-quality hair care solutions.

Consumers are becoming more aware of the importance of maintaining healthy and attractive hair, leading them to seek premium products that offer superior benefits. Moreover, the ability of these products to address specific concerns, such as dryness, frizz, split ends, dandruff, hair loss, and ageing, is attracting consumers to buy them, favoring further luxury hair care market growth.

RESTRAINING FACTORS

High Prices of Luxury Hair Products are Restraining Market Growth

The hefty prices of high-end hair care products are working against its expansion and pose a significant barrier to the overall market growth. While luxury hair care products often offer high-quality ingredients and advanced formulations, their premium pricing alienates a large portion of potential consumers. In an era where cost-consciousness and value for money are significant factors in purchasing decisions, the premium hair care industry faces challenges in attracting a broader customer base.

Furthermore, the market is highly competitive, with numerous brands vying for consumers’ attention. This intensifies the pressure on pricing points, making it difficult for luxury brands to lower their prices without sacrificing their positioning and perceived value. As a result, the high price point of these products remains a key obstacle to their wider adoption. To overcome this challenge, brands could consider strategies such as targeted marketing to niche audiences willing to pay a premium for quality, offering smaller-sized or travel-friendly packaging at a lower price point, or emphasizing the unique benefits and results of their products to justify the higher cost to consumers.

Luxury Hair Care Market Segmentation Analysis

By Type Analysis

Mass and Prominent Usage of Shampoo Attributing to Highest Market Share

By type, the market is divided into hair oil & serums, shampoo, hair colorants, conditioners, and others.

The shampoo segment accounted for the majority of the market share in 2023. Shampoos are at the base of hair care, making them an integral part of the personal care routine. Rising demand for luxury shampoos has contributed to the increasing occurrence of hair-related problems, such as dry hair, oily scalp, hair breakage, hair loss, dull hair, and alopecia areata, among many others. Environmental challenges, such as rising pollution levels and unhealthy lifestyles with poor diet, also can be harmful to hair and scalp health, which further bolsters segment growth.

By Distribution Channel Analysis

Comfort and Effortlessness Provided by E-commerce Channel to Drive Online Retailers Segment Growth

Based on the distribution channel, the market is segmented into supermarkets/hypermarkets, pharmacy/ drugstores, specialty stores, and online retailers.

The online retailers segment is forecasted to grow at the fastest CAGR over the projected period. Rising internet penetration and an increase in number of smartphone users is expected to supplement the market growth. Online channels have now grown significantly owing to the widespread use of e-commerce, ease of use, and accessibility to a wide range of products at once. Additionally, social media is at the forefront of marketing strategies promoting new innovative products through influencers, celebrities, and popular personnel, which is likely to spur market growth. Additionally, the COVID-19 scenario consolidated the growth of online distribution channels as nationwide lockdowns were implemented.

Meanwhile, the specialty stores segment contributed to a high market share in 2023. Specialty stores create an immersive and experimental shopping environment for consumers where they can explore multiple brands and their detailed portfolios for different product categories. These stores provide a more personalized shopping experience with knowledgeable staff who can offer advice and assistance, which is appealing to consumers seeking expertise and guidance in their purchase. Also, the ambience and atmosphere of specialty stores are curated for excellent experience compared to the large, more generalized environment of big-box convenience stores.

By End-user Analysis

Brand’s Major Focus and Marketing Aimed at Women Contributed to the Segment’s Large Share

Based on the end-user, the market is segmented into men and women.

The women segment accounted for the majority of market share as there is a wide variety of products targeted specifically at women compared to the relatively smaller range of products targeted at men. Also, traditionally, women have been expected to invest more in their appearance, including hair care, leading to a large consumer base. Moreover, brands often heavily target women in their marketing and advertising efforts, influencing consumer behavior and leading to higher sales among women.

Meanwhile, the men segment is expected to grow at the highest CAGR from 2024 to 2032. Changing beauty standards, growing awareness, celebrity influence, self-expression, and product innovation are some of the factors likely to assist the segment's growth.

REGIONAL INSIGHTS

Geographically, the market is divided into North America, South America, Europe, Asia Pacific, and the Middle East & Africa.

North America held the dominant part in the luxury hair care market share in terms of revenue in 2023 and is expected to grow continuously, maintaining its leading position in the market. The region is one of the vital markets for luxury hair care, driven primarily by the U.S. Higher spending power of consumers in the U.S. has enabled them to opt for high-end hair care and other beauty items. Moreover, product innovation and consistent efforts in R&D uplifts market growth.

Asia Pacific market is poised to grow at the fastest CAGR over the forecast period due to an increase in consumers’ purchasing power. As countries in the region are thriving, rising disposable income has empowered consumers to invest and spend more resources on personal care, especially on premium hair care products. This economic upturn has opened the gates for the entry of other luxury international brands into the region. Also, the preference for luxury brand products that resound cultural values is more notable among high-end Asian consumers. In countries, including China, Japan, and India, luxury products are seen as a form of social status that gives them a distinct individuality in society, which further escalates the demand for products.

The market in Europe is forecasted to grow moderately over the projected period. The increased consumer demand for organic hair care formulations and an increasing number of hairdressers and beauty salons are attributed to the robust expansion of the European market. Additionally, scientific improvements in hair care technology and consumers’ wide adoption of luxury goods are amplifying market growth in the region.

List of Key Companies in Luxury Hair Care Market

Product Innovation at the Center of Growth Strategy to Gain Strong Foothold in the Luxury Hair Care Market

The luxury hair care industry is characterized by the presence of many renowned international brands along with emerging players. Industry players are emphasizing product differentiation and innovation, which features peculiarities aligned with the changing consumer trends. These players not only have wide-ranging portfolios but also extensive global distribution networks, which enables them to reach a wide consumer base and expand into emerging economies. Meanwhile, emerging players are focused on improved product portfolios with customization options and niche markets to enhance their visibility in the market.

LIST OF KEY COMPANIES PROFILED

• Estee Lauder Companies Inc. (U.S.)


• The Procter & Gamble Company (U.S.)


• Kérastase (France)


• OLAPLEX (U.S.)


• ORIBE (U.K.)


• Alcora Corporation (U.S.)


• SEVEN, LLC. (U.S.)


• Kao Corporation (Japan)


• RAHUA (France)


• L’Oréal Group (France)

KEY INDUSTRY DEVELOPMENTS

• December 2023: Straand, a Melbourne-based hair care brand, raised 4 million Australian dollars (USD 2.62 million) in a seed round backed by Unilever Ventures.


• November 2023: Kérastase, a L’Oréal brand, launched the Blond Absolu Collection to address the hydration requirements of blonde hair. This product range features a serum with the highest concentration of hyaluronic acid ever incorporated into a haircare product. This serum signifies Kérastase's introductory scalp-specific product intended explicitly for blondes, targeting hair health at the root.


• September 2023: Melanin Haircare, an award-winning brand, expanded itself in Canada with luxury retailer Sephora, continuing its global expansion. The brand’s complete signature line was officially launched at Sephora Canada with the aim of offering high-quality, natural formulations to Canadian consumers.


• January 2022: Guerlain, a perfume, cosmetic, and skincare brand, entered the hair care segment with its flagship line, Abeille Royale. The product is oil-in-serum, composed of 97% natural ingredients and can be applied to both the lengths and the scalp.


• February 2021: New Zealand-born Monday Haircare, making luxury beauty formulas at an affordable price point, signed a USD 40 million deal with U.S. Target. As Target has a huge customer base made up of Millennials and Gen Z, the Monday Haircare is all set to have a strong foothold in the U.S. market.

REPORT COVERAGE

The market research report provides a detailed analysis of the market and focuses on key aspects such as the competitive landscape, services, and leading product types. Besides this, the report offers market insights and highlights key industry developments. In addition to the aforementioned factors, the market report encompasses several factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation