The Asia-Pacific (APAC) area was the second-largest world haircare sector market with worth gross sales of US$30.3bn, accounting for a share of 32.9% in 2020. Benefiting from the excessive residing requirements, rising well being consciousness and growth of e-commerce channel, the APAC area is forecast to develop at a price compound annual growth price (CAGR) of three.7% between 2020-2025, says GlobalData, a number one information and analytics firm.
GlobalData’s report, ‘Opportunities within the Asia-Pacific Haircare Sector’, reveals that the shampoo class led the sector in worth phrases with 51.6% market share in 2020. The salon haircare class is forecast to develop the quickest in worth phrases, at a CAGR of seven.6% whereas the hair colorants class is projected to register highest quantity CAGR at 4.9% throughout 2020-2025.
The report identifies Australia, Malaysia, Vietnam and Thailand because the high-potential international locations based mostly on GlobalData’s distinctive scoring system, which entails the risk-reward evaluation derived from a number of metrics. These metrics embody market dimension and growth evaluation, moreover the political, financial, social, and technological evaluation of 26 main economies within the APAC area.
Among the high-potential international locations, Thailand accounted for the most important worth share of 4% within the general APAC haircare market in 2020 whereas Vietnam is forecast to register the very best worth and quantity CAGRs of 11.6% and 10.1%, respectively, over 2020-2025.
Nilanjan Dutta, Consumer Analyst at GlobalData, says: ‘The APAC area is predicted to register excessive annual quantity growth in contrast to all the opposite areas in the course of the forecast interval, underpinned by rising disposable revenue ranges, and social aspirations in international locations throughout area, enabling shoppers to spend extra on haircare merchandise. In addition, giant millennial inhabitants, which is thought to pay excessive consideration to look and search revolutionary merchandise, is poised to drive additional growth within the sector.’
‘Hypermarkets & supermarkets’ was the main distribution channel within the APAC haircare sector, with a price share of 28.3% in 2020, adopted by comfort shops with a 19.5% share.
In phrases of per capita expenditure (PCE), shampoo class led the sector with US$3.8 in 2020. It was adopted by conditioner and hair colorants classes with PCEs of US$1.9 and US$0.8 respectively, in the identical 12 months.
Consumers’ rising mistrust of chemical and artificial elements has led to the launch of extra haircare strains with ‘pure’ and ‘natural’ tags. Moreover, rising shopper consciousness of the unfavorable ecological impression of greenhouse gasoline emissions is driving curiosity in ‘inexperienced’ private care merchandise.
In line with the development, Australian producer ‘Nature’s Organics’ claims to have the bottom doable unfavorable impression on the setting whereas making its merchandise and it provides its haircare vary in 100% recycled HDPE bottles to attraction to eco-conscious shoppers
Mr. Dutta concludes: ‘Driven by a extra holistic understanding of well being and wellbeing, the demand for haircare merchandise that transcend offering aesthetic enhancements is rising. For instance, pure, botanical elements with calming or soothing results are generally used. However, the pure haircare market within the area faces a problem within the type of inexperienced washing, with the manufacturers making false claims of being pure or containing pure elements, which can have an effect on the authentic pure manufacturers.’