Hair care is one of the top five Health and Beauty sector’s in Australia over the next five years, and market analyst Canadean states it has the value CAGR (Compound Annual Growth Rate) of 0.9 per cent between 2012 and 2017, whilst volume will grow at a CAGR of 3.4 per cent for the same period, thanks mainly to the aforementioned categories.
Hair Colourants will show most growth, with a value CAGR of 3.8 per cent and volume CAGR of 5.9 per cent over this period.
Similarly styling agents will grow at a value and volume CAGR of 2.0 and 3.7 per cent respectively.
However these two categories are the only shining lights in a sector that will struggle slightly in the coming years, according to Canadean.
Shampoo held the majority share of the sector in 2012, with value and volume shares of 32.9 and 31.2 per cent. However, the category is to decline at a value CAGR of -0.2 per cent to 2017, with volume growing at a CAGR of 2.0 per cent.
Elsewhere, Perms and Relaxers will decline over the next five years with a value and volume CAGR of -4.8 and -4.2 per cent to 2017.
It is a similar story in Japan, which has seen its hair care market decline and fall behind other categories, as the declining population takes its toll.
Hair care in Japan is predicted to decline marginally and sales volume of daily necessities, such as shampoos and conditioners, are also expected to; whilst the trend of black hair and natural hairstyles have also hampered the sales of colourants and styling agents.