Hair Color Market - Industry Dynamics, Market Size, And Opportunity Forecast To 2030

Global hair color market generated a revenue of US$ 17,559.7 million in 2021 and it is estimated to reach the valuation of US$ 33,794.2 million by 2030 at a CAGR of 7.5% during the forecast period, 2022–2030.

The hair color market is growing at a brisk pace, spurred by the increasing preference for different hair colors among women. In 2021, the market for hair color products was worth more than $17.5 billion and is expected to reach $33.8 billion by 2030. This growing demand is attributable to several factors, including an increase in dye use among women, shifting trends among fashion-conscious consumers, and an increased focus on personal appearance among men and women.

One of the reasons why there has been such an increase in the adoption of different hair colors is that they are seen as more flattering than traditional shades. For example, light brown hair can look fairer and lighter when paired with light skin tones, while dark brown hair can look more natural on people of different skin tones. Additionally, different hair colors can add a touch of sophistication to a woman’s appearance.

Some of the other major factors driving the growth of the hair color market are technological advancements that have allowed for more dyes to be formulated specifically for darker and lighter strands alike, as well as developments in coloring techniques that provide more vibrant and accurate results. In addition, there has been an increased focus on anti-aging properties associated with various hair color treatments, which has led to a boom in demand for bleaching products and highlights services.

Top Players in Inorganic Antimicrobial Additive Market 

L’Oréal, Godrej, Unilever Group, Henkel Corp., Kao Corp., and Revlon are some of the key players in the global market. 

In 2021, the top 5 players held around 45%–50% share of the global hair color market. Therefore, it won’t be wrong to call the market Oligopoly. However, the market scenario is projected to change in the years to come with the entry of new players and growing market share of existing small and medium size players. 

Key Developments:

• In January 2022: Liese, Singapore, has relaunched its iconic Creamy Bubble color range with new packaging that leads to an innovative virtual experience. The Liese Creamy Bubble Color line includes natural brown and fashion colors. Chiffon Brown, Berry Pink, and Olive Ash are three new, contemporary hair coolers that are being introduced in conjunction with the relaunch.
• In June 2022: With the introduction of the new L'Oréal Paris Men Expert One-Twist Hair Color, the company's first permanent hair color technique developed especially for men in the hair color market, covering up greys is now quicker, more natural-looking, and more durable than ever.
• In January 2018: With the introduction of DIY hair color to the US retail market by Clairol, a revolution in hair color was ignited. With Clairol Nice'n Easy Color Care, a ground-breaking product that combines damage-blocking technology with the ground-breaking hair dye molecule ME+ to create an Allergy Gentle formula that conditions in every step, they are now ready to revolutionize at-home hair color once more.

Key Dynamics of Hair Color Market

Drivers

Increasing Usage of Hair Color by Ageing Population

The aging population is increasingly seeking hair color that better reflects their own personal individuality. This is prompting the development of new hair color technologies that are more versatile and affordable in the global hair color market. In addition, there is an increasing demand for hair color services for people with darker skin tones.

The popularity of hair coloring among people of all ages has led to a burgeoning industry catering to this demand. There are a number of reasons why this might be the case. Some women find that dyeing their hair adds a touch of glamour and makes them feel more youthful. Additionally, many older people prefer not to wear traditional hair colors such as black or brown, because those colors can become dull or thin with age.

Instead, they are interested in shades like pink or light purple which will look better as they grow older and may even help preserve their hair color. And finally, many older people in the global hair color market enjoy changing up their hairstyles from time to time, so dyeing their hair provides an easy way to do this.

There are many benefits to opting for hair coloring over traditional hairstyles in the aging population. Hair coloring can add extra pop and variation to any look, making it a versatile choice for both aging men and women. It can also help disguise areas of density or greying hair, giving some older adults the confidence to go out socializing without worrying about impressing everyone with their current style choices. 

One downside to hair coloring in the global hair color market is that it can be rather time-consuming and expensive to get all the desired results from a single application. In cases where clients want lighter tones closer to their natural color or darker hues for an edgier look, multiple applications may be required over several weeks or months in order to achieve desired results.

Detangling hair coloring to do ongoing fashion

The beauty industry's fastest expanding sector is prestige hair care. However, as people go longer between salon appointments and search for solutions to keep their hair healthy and vibrant for extended periods of time, they are turning to goods bought outside of the professional setting. Increased category and product offerings as well as a surge of independent businesses bolstering the hair color market with specialized product lines.

Parallel to this, the hair category has seen a rise in interest in skin care and wellness, which has changed how customers see and choose products. More people are becoming interested in hair products that don't contain possibly harmful chemicals than those that do. Additionally, many appearances naturally change throughout time, particularly when it comes to hair color. Manufacturers are concentrating on learning what their consumers are demanding and what hues they believe will continue to be a significant trend in the approaching years as a new season offers new trends and innovative ways to color and highlight hair. 

Restraint

Side Effects of Hair Color

Ammonia and peroxide are frequently included in permanent hair coloring. The peroxide neutralizes or bleaches out the natural pigment in the hair, removing color, while the ammonia penetrates the hair shaft. In essence, hair damage occurs during the process of relaxing the hair cuticles in order to access the cortex of the hair and bleach out its natural pigment. The hair will lose its shine, break easily, and in extreme situations, wash away with water if individual over-treat it with these chemicals in the hair color market. While hair care products can restore some of the damage from over-processing, the only way to completely remove it is to cut the hair off.

PPD and other compounds included in dyes are more likely to induce responses in those who suffer contact dermatitis. 

Additionally, hair dyes are not used to color the hair of individuals who suffer from skin problems like eczema and psoriasis. Itching, skin irritation, redness, and swelling on the scalp or other delicate areas like face and neck are less severe side effects of permanent dyes.

Trend

Captivating Advertisement and Adoption of Organic Hair Color

The demand for natural and organic cosmetic products has increased more than ever during the past few years. Many customers believe that "organic" or "natural" hair care ingredients automatically make them safer. The natural occurrence of greying hair is caused by ageing and frequent use of synthetic shampoos, which has pushed the use of synthetic dyes due to the increased use of dangerous chemicals in manufacturing. 

As a result, several manufacturers in the global hair color market have been studying consumer needs and developing their products to be safer and more natural. For instance, Aveda claims to have a hair color formula that is largely natural. According to Justina Mejia-Montane, Vice President of Global Product Development at Aveda, "96% of the recipe is comprised of elements originating from nature, including as the humectants, conditioners, viscosity builders, solvents, and antioxidants." Thus, the market's growth has been greatly accelerated by the growing demand for organic hair color. 

Market Segmentation

By Type 

By type, global hair color market is segmented into chemical, natural, and vegetal. According to our estimates, the chemical segment held more than 50% market share in 2021 thanks to their longer shelf life.

A growing proportion of millennials are embracing current trends in clothing, which includes attractive hair coloring. The hair color market is being driven by evolving lifestyles, increased urbanization, and the rising youth population in emerging economies. The vegetal hair color segment is expected to grow at a CAGR of 8.7% in the years to come.

By Application

By application, global hair color market is bifurcated into two segments based on applications: men and women. In 2021, the women segment was able to generate around ~68% of the market's revenue. In general, women care more about their appearance and personality than men do. Women also spend more money on cosmetics and other beauty supplies.

According to the American Society of Cosmetic Chemists, women are the key consumers of hair color products. In fact, they account for nearly two-thirds of all hair color product sales. This is likely due to their willingness to change their look frequently, as well as the diversity of hair colors that appeal to them. Here are some other key factors about women in the global hair color market:

• Women have a wider range of hair color choices than men, which means they can often find a shade that matches their skin tone.
• They also use more products than men to achieve the same effect. They typically use three times as much product to get the same result as a man.
• Women are more likely than men to dye their hair multiple times throughout the year. This is because they want to keep up with trends and try out different shades.

During the forecast period, the men category is expected to increase at the highest CAGR. Globally, men's growing concerns about their looks and grooming are some of the key elements driving the hair color market expansion. Additionally, increasing availability of expert salon services and a range of men's grooming products would add value to the growth of men's hair color products over the forecast period.

By Form 

By form, the global hair color market is categorized into cream, powder, and others. The cream segment is projected to continue dominating the global market due to higher preferences among consumers. Cream dye is more concentrated than powder dye and has already been dissolved in water. 

One of the main benefits of cream hair dye is that it is extremely versatile. User can use it to create a natural look, or can go for a more dramatic effect by using a darker cream color. User can also use different shades to create many different looks.

This type of dye is also ideal for people who are sensitive to caustic chemicals. In addition, this type of hair color does not require conditioning treatments like regular dyes do. As a result, consumer save time and money when they choose to use cream form instead of other kinds.

Furthermore, cream is cost-effective and enables one to use only the amount required. It is simple to apply along the hairline and the mixture does not spatter or leak readily. This is perfect for touch-ups at the hairline and roots.

By Usage Analysis

By usage, the global hair color market is divided into permanent, semi-permanent, temporary, and highlights/bleach based on how it is used. As per our findings, the permanent sector accounted for the largest market share. This can be attributed to growing inclination of vendors in the permanent hair color market segment towards delivering cutting-edge formulations to fulfil client expectations. For instance, many key companies in the global hair color market offer hair colors that shield the hair completely from the root and avoid brassiness in the hair.

Additionally, a lot of merchants offer fade-resistant permanent hair colors that need little color care. 

Geographical Analysis

Asia Pacific is projected to hold a key position in the global hair color market and is likely to continue holding its dominance in the years to come.The key drivers behind this trend are aging populations and increasing spending on cosmetics and beauty products. In addition, women in Asia Pacific are more likely than those in other regions to seek lighter hair colors, which appeals to a trend toward enviro-conscious lifestyles.

The main drivers of this hair color market are China and India, which together accounted for a significant global hair color expenditure in 2021. These two countries are increasingly obsessed with altering their appearance, with over 60% of Chinese women and 45% of Indian women dyeing their hair sometime during their lifetime. In addition, economies in Southeast Asia are growing rapidly and there is an increasing demand for luxury goods, including hair color.

There are several reasons why Asian consumers in the hair color market are so keen on having a varied range of hair colors. One reason is that many Asians especially in Japan and South Korea believe that having multiple types of hair shows diversity and strength. Another reason is that people in Asian cultures often wear traditional dress that does not allow for natural coloring or lightening of the hair. As a result, many Asians opt for permanent or semi-permanent hair dyes to give them the desired look without needing to change their clothing or hairstyle regularly.

North America will hold a sizable share of the global hair color market, making it the second-largest region. This is because the area continues to play a significant role in the expansion of the cosmetics sector. Additionally, a number of cosmetic producers are searching for fresh tailored product offers to meet the customers' changing wants. Additionally, American women spend a lot of money each year on cosmetics.

Segmental Overview

By Type

• Chemical
• Natural
• Vegetal

By Application

• Women
• Men

By Form

• Cream
• Powder
• Others

By Usage

• Permanent Hair Color
• Semi-Permanent Hair Color
• Temporary Hair Color
• Highlights/Bleach

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • The U.K.
  • Germany
  • France
  • Italy
  • Spain
  • Poland
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia & New Zealand
  • ASEAN
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of Middle East & Africa