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UK hair care market to increase by a CAGR of 1%

Industry Sector

Consumer Goods

Published

16 July 2012

Author

Matt Bodimeade

Type of News

Market

Looking ahead to 2016, value sales within the UK hair care market have been forecast to increase by a CAGR of 1% in constant value terms, to reach a value of £1.5 billion. Market growth is set to be attributed to new forms of innovation, better quality ingredients (following the herbal/organic trend) and greener packaging, but also to consumers continuing the trend to treating themselves to good quality hair care at home rather than in the salon.

The UK hair care market experienced a compound annual growth rate (CAGR) of 3% in value terms throughout 2011, to reach a market value of £1.4 billion.

Standard shampoo remained the largest segment within the UK hair care market, experiencing a CAGR of 4% from 2010 to record a sales value of £405 million. No matter the economic conditions, consumers will continue to buy and use shampoo, while also keeping an eye out for promotions such as "buy one for £3.50 or buy two for £5". These offers seem to have had a great impact on the UK hair care market, and have proven successful with many manufacturers.

Colourants became the fastest growing segment of the UK hair care market in 2011, recording a CAGR of 7%. Due to recent innovations within this sector, hair dye has been made less tricky to use at home, meaning it is now easier to create and maintain a look from home without breaking the bank and without the need to go to a salon as often.

Proctor & Gamble UK Ltd remained the number one brand within the UK hair care market in 2011, recording a value share of 24% and total market sales of £333 million. Its five best performing brands accounted for 23% of hair care sales. The category in which it held the strongest share was shampoo, with value sales reaching £147 million, led by Pantene. In 2011, L'Oréal (UK) Ltd ranked number two within the UK hair care market, with a 15% market share and total sales of £204 million.

For more information on the UK hair care market, see the latest research: UK Hair Care Market Report

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