Target’s launch of actress Blake Lively’s new hair care brand Blake Brown in stores and online earlier this month is its biggest hair care launch ever as demand for the product category increases. The wholesaler is making an active effort to expand its hair care assortment and has found that nearly 40 percent of guests are purchasing its hair care assortment. Lively isn’t the only celebrity to launch a hair care-focused brand this year. In March, Dwayne “The Rock” Johnson launched
ohnson has launched a multifaceted personal care brand with a variety of face, body and hair products. Meanwhile, singers and serial entrepreneurs Beyoncé Knowles-Carter and Rihanna launched direct-to-consumer hair care lines: Cécred and Fenty Hair, on February 20 and June 13, respectively. We’ve seen the rise, fall and rise again of celebrity perfume launches, but what’s behind the hair care lines of celebs and lesser-known entrepreneurs? The Rise of the Hair Care Industry. Retail industry newcomers and veterans alike are aware of the “lipstick effect,” a retail phenomenon that refers to the increased demand for affordable luxury items during tough economic times. In previous times of economic hardship, sales of lipsticks and similar small purchases dominated. More recently, scented products such as candles and perfumes have been in high demand as consumers seek personal care and entertainment. Now, data has revealed a new category in the beauty industry: hair care. According to market research firm Fortune Business Insights, the global hair care market was valued at $99.5 billion in 2023. The market is expected to grow from $106.9 billion in 2024 to $213.4 billion in 2032, reaching a compound annual growth rate of 10.4 percent during the forecast period. As reported by German research and analytics platform Statista, hair care occupies one of the largest shares of the global beauty market, about 22 percent in 2022, surpassed only by the skin care market. Target is not the only major retailer trying to strengthen its position in the hair care business. This July, New Zealand entrepreneur Jaimee Lupton, who previously launched beauty brands Monday Haircare and Osāna Naturals in U.S. retail, teamed up with Walmart to launch the retailer’s exclusive hair care brand, Being. Factors Behind the Growing Interest in Hair Care Bethany Paris Ramsay, founder of beauty marketing and communications firm Honey B, noted that the rise of the hair care market is driven by several factors: the influence of social media, the increase in hair loss, and a growing interest in hair care education. Ramsay explained, “I think the pandemic was a major turning point for hair care. Consumers were facing new types of stress in every aspect of their lives, including due to Covid or without, and for many, their hair was impacted in ways they had never experienced before. So many women in particular, and I mean young women in their 20s and 30s, have experienced hair loss and have been looking for solutions ever since.” Kimber Maderazzo, associate professor at Pepperdine Graziadio Business School and veteran beauty executive, echoed Ramsay’s observation. “The rise in hair care successes is a direct reflection of what’s going on in life today: stress, diet, medications, pregnancy, menopause, and so many other reasons. “For lifestyle reasons, we’re seeing things like thinning hair in younger generations,” Maderazzo told Inside Retail. Survey data released in January 2022 by the Dermatology & Cutaneous Surgery Institute (DCSI) confirmed that nearly two-thirds of Americans ages 35 and older are experiencing hair loss or thinning hair. Maderazzo also pointed out that “people used to go to the dermatologist for these types of treatments, but now there are so many solutions in retail that can help. The consumer is realizing this is an important category and it’s going to continue to grow.” Ramsay suspects another factor behind the growth of the hair care market is related to customers’ increasingly tightened grip on their wallets. “We have to consider the rising cost of living, job uncertainty and concerns about the state of the economy. Similar to the forced time at home in 2020, this is also leading consumers to do their hair care at home more often to save money. When there are products that extend the time between haircuts, coloring and expensive salon treatments, consumers are intrigued,” she said. “Of course, the rise in DIY behavior is huge for retailers to offer products that contribute to these solutions overall. Like skin, hair is something consumers consider ‘worth the investment.’ They will spend money on less expensive products if it saves them money in the long run by being less reliant on professional services.” Ramsay added that TikTok has provided consumers with a wealth of haircare content, ranging from scalp care methods like consistently using oils to wearing satin or silk bonnets to bed. “Black creators, often the true innovators for so many beauty trends, have shared long-standing practices and rituals with their viewers and these have now spread to other communities,” she said. “Everyone wants to keep their hair as healthy as possible and wrapping hair before bed is now ‘on trend’, whereas previously consumers may have just opted for a silk pillowcase to alleviate these concerns.” What’s next for the hair care market? As retailers rush to gain a foothold in the hair care market, there are a few trends to keep an eye on when deciding what type of brands and products to launch. As Maderazzo and Ramsay both noted, customers are placing more and more emphasis on products to alleviate hair loss and damage. Data from Grand View Research confirmed a growing interest in these types of products, finding that the global hair growth supplements and treatments market alone was worth approximately $7.74 billion in 2023. This market is expected to grow at a compound annual growth rate of 6.15 percent from 2024 to 2030. With increasing awareness of product ingredients, customers want more choice, especially those with cleaner formulations for people with allergies and other skin sensitivities. Additionally, Ramsay has seen increasing interest in hair supplements that do not contain biotin, a vitamin B complex with known benefits for skin and nail growth, as it can cause inflammation in acne-prone consumers. Many consumers also want more environmentally friendly options, from ingredient sourcing to “greener” packaging materials, such as recycled paper. As the hair care market continues to grow, retailers must be aware of the multifaceted concerns of their target audience and find ways to offer the most effective solutions at an attractive price with aesthetically pleasing packaging.
