The US Haircare Market: What Consumers Use and Why?




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Product Synopsis

This report provides the results for the Haircare market in the US from Canadeans unique, highly detailed study of consumers Consumer Packaged Goods (CPG) consumption habits, and forms part of an overall series covering all CPG product markets. Its coverage includes, but is not limited to, consumption behaviors, the extent to which consumer trends influence their consumption, the value of the market these trends influence, and brand and private label choices as well as retailer choices. Much of this information can also be analyzed by specific consumer groups, providing hard and fast data on consumers and markets at the product category level.

Introduction and Landscape

Why was the report written?

Marketers in the Haircare market face a major challenge. Understanding market size and segmentation is valuable, but the key to effective targeting is knowing just how valuable specific consumer groups are, and being able to quantify the impact of consumer trends. This data report solves these problems by providing survey-based data on consumer trends and consumer groups, and market data that shows the exact size of consumer groups, how much of the Haircare market they account for, and which consumer trends drive their behavior.

What is the current market landscape and what is changing?

As consumer confidence increases proportionally to economic recovery, consumer trends will be directly affected. Since the global financial crisis of 20082009 the retail market has been characterized by an increase in the amount of discounted and own-brand products. Conditioner, Hair Colorants, Perms & Relaxers, Shampoo, and Styling Agents are not considered essential items and therefore consumption patterns have been comparatively affected. As economic and market recovery continues over 2012, consumption patterns will record a positive trend in both the medium and heavy frequency bands and the amount of non-users should decrease.

What are the key drivers behind recent market changes?

Consumers uptake of products and the influence of consumer trends are fundamental causes of change in markets making knowing what these trends are and the extent of their influence crucial. The survey-based data provided in this report examines over 20 consumer trends that affect the market and examines the share of consumption across 26 consumer groups. This data provides a detailed insight into exactly who the consumer is and just how much impact the latest consumer trends are having.

What makes this report unique and essential to read?

The data provided is unique in the market as it tracks consumer behavior through to its actual value impact on a product market. This provides readers with a unique data analysis of the market, allowing marketing tactics and strategy to be updated in line with the very latest consumer behaviors.

Key Features and Benefits

  • Consumer data, based upon proprietary surveys and then consumer group tracking and modeling for the following specific categories: Conditioner, Hair Colorants, Perms & Relaxers, Shampoo, and Styling Agents.
  • Detailed consumer segmentation covering over 26 consumer groups, 20 consumer trends, and consumption frequency for each product category.
  • Consumer penetration for brands and private labels, based upon the original survey and then subsequent consumer tracking and modeling.
  • Unique retailer choice data at the product category level, based upon the original survey and then subsequent consumer tracking and modeling.

Key Market Issues

  • Consumption of Conditioner in the US mirrors consumption of Shampoo, whereby the proportion of Heavy frequency users peaks among Early Young Adults, after which it declines slowly. However, there are significantly more Heavy frequency consumers of Shampoo than Conditioner, indicating that suppliers of Conditioners need to increase the consumption frequency of current users.
  • Significantly more women consume Hair Colorants than men. While the proportion of Heavy users is similar across genders, 22% of women record Medium frequency consumption compared to only 5% of men, while 17% of women record Light frequency consumption compared to only 9% of men. This highlights that women are willing to spend more to prevent the graying of their hair than men.
  • Consumption of Styling Agents peaks among Pre-Mid-Lifers. Within this age group 21% of consumers record Heavy frequency consumption, 14% record Medium frequency consumption, and 10% record Light frequency consumption. Suppliers should aim to increase the consumption frequency of the substantial numbers of Medium and Light frequency users.

Key Highlights

  • Private label penetration is less than 5% of the market by volume across the US Haircare market. While the presence of private label is highest for hair styling agents, it is lowest for hair colorants. The US is a mature retail environment and, as such, retailers are expecting to invest further in their Haircare private label programs in order to grow their market share.
  • The Better value for money trend is a key factor driving the Haircare market in the US. This highlights the weak state of the US economy and that consumers consider Haircare a market in which they can control their spending by trading down, purchasing private label products or decreasing their consumption frequency. An emphasis on price means that suppliers need to focus on differentiating their products through innovation to prevent a cost-cutting race to the bottom and to increase their margins.
  • Market valuation reveals that Shampoo accounts for almost a third of total Haircare sales in the US. It is followed by Conditioner and Hair Colorants. Given that Shampoo and Conditioner products are often designed to be used together, suppliers should develop marketing strategies that will encourage joint consumption and therefore increase the value of the Conditioner market