Overview 1
Catalyst 1
Summary 1
Table of Contents 2
Table of figures 3
Table of tables 4
THE FUTURE DECODED 5
INTRODUCTION: Haircare is a major component of the overall personal care market 5
This report is one in a series of five category focused reports outlining the future of personal care trends 5
As one of the most distinguishing aspects of a consumer's appearance, many regard their haircare regime as a pivotal part of looking good 5
The overall global haircare market is subject to a number of drivers and inhibitors 7
TREND: 'Visual Culture' and an associated pre-occupation with appearance is the defining trend in the personal care space across product categories 8
Image is important to consumers even if they do not significantly feel societal pressure to look good (at least consciously that is) 9
There is scope for consumers to feel happier about their appearance, given the pressure to conform to demanding beauty ideals associated with contemporary society 15
Key takeouts and implications: Visual Culture is the core macro-trend influencing personal care habits 18
TREND: Sales of haircare products have remained resilient despite the recession 19
Key takeouts and implications: the importance of haircare is illustrated by burgeoning sales during the recession 26
TREND: Most consumers are spending longer on their beauty regimes 27
Key takeouts and implications: consumers are paying more attention to their hair and increasing the complexity of their haircare regimes accordingly 33
INSIGHT: Haircare is important to consumers on an emotional level as well as being a pivotal facet of managing day-to-day appearance 34
Many consumers are concerned by a broad range of issues associated with haircare, ranging from greasy hair to dandruff but attitudes are polarized overall 39
Key takeouts and implications: industry players should not underestimate the importance that consumers place on their haircare regimes 50
INSIGHT: Consumers are more concerned about buying effective haircare products than branded ones 51
Attitudes towards haircare product quality and brand vary by region and by type of haircare product 51
Haircare manufacturers need to recognize the 'experience economy' 67
Key takeouts and implications: a preoccupation with the benefits of healthy hair, combined with a lack of status value associated with brands means that efficacy is key in the haircare market 70
INSIGHT: An overwhelming consumer desire for value places additional pressure on haircare manufacturers and retailers 70
Value-for-money considerations heavily influence haircare choice 71
There are some regional nuances influencing consumers' overall hierarchy of needs 74
Key takeouts and implications: brands must attempt to appeal to the value conscious instincts of consumers rather than be drawn into price wars that can severely compromise product quality and image 85
INSIGHT: The inclusion of ethical and natural ingredients is an area of growth in the market 85
Key takeouts and implications: consumers are responding to the increasing manufacturer tendency to include natural/organic ingredients in their product formulations 94
INSIGHT: Consumers are gravitating away from the generic in favor of more specialized haircare products 94
Key takeouts and implications: although haircare products tend to claim non-specific benefits, it is clear that different demographics require different benefits from their purchases 101
INSIGHT: Personal recommendations influence consumer behavior in the haircare market more so than endorsement led marketing 101
Key takeouts and implications: the willingness with which consumers trust personal recommendations highlights the need to create products worth talking about 106
INSIGHT: Product launch data indicates a greater emphasis on specified haircare products 106
Key takeouts and implications: haircare products which offer organic benefits or are particularly beneficial to children have both been areas of growth in the past few years 108
ACTION POINTS 110
ACTION: Focus on innovation to provide added value in a mature category 110
ACTION: Target individual consumer groups with custom products 114
ACTION: Ensure a strong online presence to provide consumers with extra information 117
ACTION: Do not fall behind competitors in embracing the natural and organic movement 120
ACTION: Justify pricing through communicating value rather than discounting 121
APPENDIX 123
Methodology 123
Further reading and references 124
Ask the analyst 125
Our Consultancy 125
Disclaimer 125
List of Tables
Table 1: Consumer survey: the extent to which consumers feel under pressure to look good, in 15 countries across Europe, Asia Pacific, South America and North America, by country, 2008 12
Table 2: Consumer survey: the importance that consumers attribute to looking their best in day-to-day life, in 17 countries across Europe, Asia Pacific, South America, North America and the Middle East, by country, 2009 13
Table 3: Consumer survey: the self-reported propensity to make sure beauty products are used up before replacing in order to save money, in 17 countries across Europe, Asia Pacific, South America, North America and the Middle East, by country and product category, 2009 20
Table 4: Market value of haircare products in Europe (US$ millions), by sub-category, 2004-2014 22
Table 5: Market value of haircare products in Asia Pacific (US$ millions), by sub-category, 2004-2014 23
Table 6: Market value of haircare products in North America (US$ millions), by sub-category, 2004-2014 24
Table 7: Market value of haircare products in South and Central America (US$ millions), by sub-category, 2004-2014 25
Table 8: Market value of haircare products in MENA (US $ millions), by sub-category, 2004-2014 26
Table 9: Per capita daily usage occasions of shampoo globally, by country, 2004-2014 31
Table 10: Per capita daily usage occasions of conditioner globally, by country, 2004-2014 32
Table 11: Per capita daily usage occasions of hair styling products globally, by country, 2004-2014 33
Table 12: Consumer survey: the importance that consumers attribute to taking care of their hair, in 17 countries across Europe, Asia Pacific, South America, North America and the Middle East, by country, 2009 39
Table 13: Consumer survey: concern about greasy hair, in 15 countries across Europe, Asia Pacific, South America, and North America, by country and gender, 2008 41
Table 14: Consumer survey: concern about difficult to style hair, in 15 countries across Europe, Asia Pacific, South America, and North America, by country and gender, 2008 43
Table 15: Consumer survey: concern about graying hair, in 15 countries across Europe, Asia Pacific, South America, and North America, by country and gender, 2008 45
Table 16: Consumer survey: concern about thinning hair, in 15 countries across Europe, Asia Pacific, South America, and North America, by country and gender, 2008 47
Table 17: Consumer survey: concern about dandruff or irritable scalp, in 15 countries across Europe, Asia Pacific, South America, and North America, by country and gender, 2008 49
Table 18: Consumer survey: the statement that European consumers believe best reflects their outlook on shampoos and conditioners, by country and gender, 2009 57
Table 19: Consumer survey: the statement that European consumers believe best reflects their outlook on hair styling products, by country and gender, 2009 58
Table 20: Consumer survey: the statement that US and Brazilian consumers believe best reflects their outlook on shampoos and conditioners, by country and gender, 2009 60
Table 21: Consumer survey: the statement that US and Brazilian consumers believe best reflects their outlook on hair styling products, by country and gender, 2009 61
Table 22: Consumer survey: the statement that Asia Pacific consumers believe best reflects their outlook on shampoos and conditioners, by country and gender, 2009 63
Table 23: Consumer survey: the statement that Asia Pacific consumers believe best reflects their outlook on hair styling products, by country and gender, 2009 64
Table 24: Consumer survey: the statement that MENA consumers believe best reflects their outlook on shampoos and conditioners, by country and gender, 2009 66
Table 25: Consumer survey: the statement that MENA consumers believe best reflects their outlook on hair styling products, by country and gender, 2009 67
Table 26: Consumer survey: stated importance of materialism and experiential consumerism, in 15 countries across Europe, Asia Pacific, South America and North America, by gender and country, 2008 68
Table 27: Consumer survey: perceived similarities between store brand products (e.g. supermarket own brands) and market leading famous brands, in 17 countries across Europe, Asia Pacific, South America, North America and the Middle East, by country and FMCG product sector/category, 2009 81
Table 28: Consumer survey: the importance attached to buying ethical or socially responsible products, in 15 countries across Europe, Asia Pacific, South America, and North America by country, 2008 87
Table 29: Consumer survey: the importance attached to buying ethical or socially responsible products, in 15 countries across Europe, Asia Pacific, South America, and North America by country, 2008 88
Table 30: Launches over time: top 10 product claims in the haircare market, by claim, 2005-2009 108
Table 31: Launch data for 'natural' and 'organic' haircare products globally, 2005-2009 120
List of Figures
Figure 1: There has not been much movement in terms of where haircare stands in relation to the overall personal care market 6
Figure 2: Aside from MENA, consumers place slightly more importance on haircare than more generally looking one's best in day-to-day life 7
Figure 3: Consumers regard haircare products as important but desire for value opens up the threat of trading down and private label competition 8
Figure 4: Visual Culture is a term describing consumers' intense appearance consciousness and the widespread desire to project a more confident and favorable image to the wider world 9
Figure 5: Appearance is important to consumers across geographic territories, regardless of whether they feel pressure to conform to the pervasive presence of Visual Culture in modern society 11
Figure 6: Lauren Luke embodies the 'everywoman' element of contemporary Visual Culture 14
Figure 7: While most consumers attribute a high importance to looking good, fewer are actually happy with how they look themselves 16
Figure 8: Outside of the emerging BRIC markets, Spaniards are the most reliant on beauty products to feel more confident about themselves 18
Figure 9: Beauty is associated with success and opportunity, but workplace professionalism is deemed comparably less influential on the general personal care choices that consumers make 28
Figure 10: Personal branding is a manifestation of the pervasive influence of the 'Visual Culture' trend 29
Figure 11: Korean consumers are the most frequent users of shampoo on a daily basis 30
Figure 12: Consumers from hot and humid countries are more likely to frequently use conditioning products 31
Figure 13: Consumers in image-conscious countries such as Brazil are regular users of hair styling products 32
Figure 14: Around two thirds of global consumers believe haircare is an important part of their beauty regime 38
Figure 15: There is a significant gender difference when it comes to attributing importance to haircare 38
Figure 16: Over a third of consumers are worried about dandruff/scalp itchiness to the extent that they use haircare products to prevent this 40
Figure 17: Around a third of global consumers use haircare products to deal with the problem of greasy hair 42
Figure 18: About half of consumers are concerned that their hair is difficult to style but only a quarter purchase products to help with this 44
Figure 19: Graying hair is a particular concern to consumers in China, India and South Korea 46
Figure 20: More than half of all consumes globally show a lack of concern regarding thinning hair 48
Figure 21: More consumers are concerned and acting upon concerns about dandruff than any other haircare worry 50
Figure 22: Spanish consumers are the only Europeans to prefer branding to efficacy in haircare products 53
Figure 23: Brazilians are far more influenced by branding than US consumers 53
Figure 24: Efficacy is a major consideration for consumer in Asia Pacific 54
Figure 25: Three quarters of Saudis find branding and efficacy to be an important part of their haircare product choice 54
Figure 26: Europeans are quality conscious when purchasing shampoos and conditioners but are divided on the issue of brand importance 55
Figure 27: Europeans are generally unconcerned by branding when purchasing hair styling products 56
Figure 28: Brazilians tend to be careful about both quality and brand when selecting shampoos and conditioners 59
Figure 29: More than a third of Brazilians want quality and branding when buying hair styling products 59
Figure 30: Indian consumers in particular are quality and brand conscious with their shampoos/conditioners 62
Figure 31: A third of Australians claim not to use hair styling products at all 62
Figure 32: Quality, branded shampoos are important to consumers in the Middle East 65
Figure 33: Gulf consumers are more likely to use hair styling products compared to the global average 65
Figure 34: Experiential consumerism and premiumization represent key trends driving 'authenti-seeking' consumer behavior 69
Figure 35: Consumers assign value to products based on a number of factors 72
Figure 36: This chart summarizes consumers' hierarchy of preferences and priorities for haircare products with value-for-money standing out as the major driver of perception in most countries 73
Figure 37: For Europeans, value is by far the most important factor in haircare product purchases with the exception of in Russia 74
Figure 38: US consumers are greatly influenced by value but find packaging and endorsements to be distinctly unimportant 75
Figure 39: There is a far bigger inclination for Asian consumer to opt for efficacy 76
Figure 40: Middle Eastern consumers regard haircare as a very sensual part of their personal care regime 77
Figure 41: Obtaining value-for-money is regarded by most consumers as important but not essential 78
Figure 42: Consumers are only more value conscious in the oral hygiene category of personal care 79
Figure 43: Branding is more important in more prestigious categories such as fragrances 80
Figure 44: Private label launches in the haircare category are growing, although they still only represent a small fraction of the overall market 82
Figure 45: Spanish consumers are the most willing of all Europeans to switch to private label haircare products 83
Figure 46: One in 10 US consumers have intimated that they have switched to private label shampoos in order to save money 83
Figure 47: Japanese consumers are extremely reticent to swap branded haircare products for private label alternatives 84
Figure 48: Saudi Arabian consumers are somewhat more likely than their UAE counterparts to switch to private label shampoos, conditioners and hair styling products 84
Figure 49: Sustainability and ethics will drive a higher number of commercial and consumer decisions, driving change across the value chain 86
Figure 50: Natural haircare products are particularly desirable to Russian consumers 92
Figure 51: US consumers are relatively apathetic towards natural or ethical haircare products 92
Figure 52: Natural ingredients and ethical practices are very important to Chinese and Indian consumers 93
Figure 53: Gulf consumers prefer their hair products to have natural and/or ethical benefits 93
Figure 54: Customization benefits are likely to appeal to the high proportion of individualistic global consumers who value the opportunity to be personally expressive and have products the better meet specific needs 95
Figure 55: European consumers are seeing customization as an increasingly important thing in haircare 96
Figure 56: Product customization is becoming increasingly influential to haircare purchases in the US 96
Figure 57: Japanese consumers are relatively unconcerned about customized benefits in the haircare category 97
Figure 58: Saudi consumers in particular want haircare products that are suited to their individual needs 97
Figure 59: Some manufacturers are responding to the desire for customization in the haircare market 100
Figure 60: Product endorsements are most effective in Italy and Russia 104
Figure 61: Endorsements alone are unlikely to drive US consumers to make haircare purchases 104
Figure 62: Australians are the least influenced by marketing strategies when it comes to haircare products 105
Figure 63: Word of mouth marketing is particularly likely to be effective in the Middle East 105
Figure 64: Manufacturers are launching more conditioners at the expense of hair colorants 107
Figure 65: Functional haircare products are increasingly touting anti-aging benefits 108
Figure 66: Innovative haircare products which can provide consumers with convenience will be of interest 112
Figure 67: Innovative haircare products stand more chance of appealing to consumers in a saturated market 113
Figure 68: Haircare products are being increasingly tailored to specific demographics of consumers 116
Figure 69: Allowing consumers more freedom to customize their haircare regimes is likely to curry significant favor 117
Figure 70: Consumers congregate online to discuss issues associated with the haircare industry 118
Figure 71: Social networking websites allow fans to connect with the brand and each other 119
Figure 72: Consumers can use the internet to compare haircare products in terms of attributes and prices 119
Figure 73: Natural and organic haircare products are becoming an increasingly prominent part of the market 121