Professional Hair Oils Market Overview
The growth of the global professional hair oils market is driven by the fluctuations in hairstyle trends, rapid increase in disposable income, rapid population growth, and a rise in air pollution across the world. Professional hair oils stimulate hair growth by getting deep into the follicles. However, the high cost of premium and professional hair oil products and the use of hazardous chemicals by certain manufacturers are hampering the growth of the global professional hair oils market to a certain extent.
According to hair experts, people should give a good oil massage to the scalp once a week, to reduce itchiness, dryness, and brittles. The professional hair oils market is classified based on sales channel, ingredient, and geography. Professional oils are either used in salons or sold to consumers. Salon services products are also known as back-bar products and are used by stylists on consumers in salons. Salon retail hair oil products are those professional hair oil products that are sold through professional salons and other retail stores to consumers for use at home.
On the basis of the ingredient, professional hair oils are classified into Moroccan Oil, Macadamia Oil, Avocado Oil, and Others. Furthermore, the professional hair oils market has been analyzed on the basis of geography, comprising Asia-Pacific, North America, South America, Europe, Oceania, and Rest of the World.
Professional Hair Oils Market Outlook
The global professional hair oils market was valued at $954.26m in 2017 and is estimated to reach $1,265.33m by 2023, growing at a CAGR of 4.87% from 2018 to 2023. The Moroccan oil segment of the professional hair oils market generated $570.84m in revenue in 2017 and is poised to register a CAGR growth of 5.41% during the forecast period 2018–2023 to reach $780.96m by 2023. Many key players, in recent years, have invested considerably to expand their product portfolio by incorporating Moroccan oil based products. On the basis of the sales channel, the market is segmented into salon services and retail services. The salon services segment dominated the professional hair oils market by generating $541.45m in revenue in 2017. This is further forecast to grow at a CAGR of 5.07% to reach $726.30m by 2023.
The market is expected to witness rapid growth in the Asia-Pacific and North American regions. Europe dominated the market with a 35% share in 2017.
Professional Hair Oils Market Growth Drivers
The growing trend for usage of professional hair products, the increasing hair damage and hair fall problems due to pollution, the increasing aging population, and the growing consumer awareness about natural products are the driving factors for the global professional hair oils market.
The high social media presence of a large youth population, who constantly keep up with the changing hair care trends are influencing the growth of the market. Various trends glorified by many celebrity bloggers and stars also promote many professional hair care methods and therapies using professional hair oils. Celebrity endorsement of individual professional hair oil brands coupled with the growing adoption of professional hair products in the fashion industry has also drastically driven the market growth.
The online retail segment is growing at a fast pace and is turning out to be a major sales channel for professional hair oils.
Professional Hair Oils Market Challenges
High cost of professional hair oils, primarily essential hair oils such as lavender oil, Moroccan oil, avocado oil, chamomile oil, and many others is a restrain for the widespread adoption of professional hair oils. The process to extract these oils is complicated and long, and the yield is also usually low. Enormous quantities feedstock is required to produce these oils. For example, it takes 4,000 pounds of Bulgarian roses to produce just 1 pound of oil. These oils are sold in very small bottles at high costs. If one can get basic coconut hair oil for $70 a gallon, you would get the same quantity of Moroccan hair oil for about $1,190. The price difference between the two is more than $1,000. The exorbitant price of professional hair oils and the easy availability of cheaper alternatives are the major challenges for the growth of the professional hair oils market.
Certain products that contain key harmful chemicals such as ammonia and other kinds of allergens have led to a huge drop in sales of professional hair oils because the consumer is now more focused on quality and more aware about the long-term health risks.
The increasing number of mobile hair dressers, as consumers look for comfort and easy availability, has directly reduced the consumer base of professional hair salons and beauty parlors as the consumers would rather have the desired services at the convenience of their homes.
Top manufacturers are being challenged by small-scale manufacturers of organic products that are chemical free and constantly release new product batches. This undesirably impacts the market and manufacturers have to keep in mind the supply–demand ratio so as to not face high loss in sales.
Professional Hair Oils Market Research Scope:
The base year of the study is 2017, with forecast done up to 2023. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the professional hair oils market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include the types of hair oil product and their distribution channels.
Professional Hair Oils Market Report: Industry Coverage
Professional Hair Oils Market – By Distribution Channel: Direct, Illegal, Online and Professional
Professional Hair oil Market – By Ingredient Type: Moroccan, Macadamia, Avocado, and Others
Professional Hair Oils Market – By Geography:
- North America: The U.S., Canada, Mexico, and Rest of North America
- South America: Brazil, Columbia, and Rest of South America
- Europe: Austria, Belgium, Denmark, France, Finland, Germany, Italy, Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, The U.K, and Others.
- APAC: China, Hong Kong, Japan, South Korea, India, Taiwan, Malaysia, Indonesia, Singapore, Thailand, Vietnam, and Others.
- Oceania: Australia, New Zealand, and Others
- Rest of World: Saudi Arabia, South Africa, and Others
Professional Hair Oils Market Key Players:
The key player of the professional hair oils market is the France-based L’Oreal S.A.
Procter & Gamble Co (U.S.), Kao Corporation (Japan), Henkel AG & Co (Germany), KGaA (Germany), Shiseido Company (Japan), Unilever Ltd (U.K.), Revlon Inc (the U.S.), and Amos Professional (Korea) are some of the other key players of the professional hair oils market.
Professional Hair Oils Market Trends:
- Increasing R&D towards modernization of products to address hair care related problems faced by consumers is providing an opportunity for the growth of the market.
- The market for professional hair oils is well-established and is witnessing growth due to the growing awareness among consumers about hair care and treatment in the past few years.
- Online retail has become an important distribution channel for hair oil products. It contributes to a small percentage of sales, but the sector is growing fast as customers believe that the products that are present online are cheaper and easier to buy.
- Growing acquisitions, partnerships, and product launches by major companies are increasing the scope of the market.