Despite a slowdown in growth in the European hair care market, innovation has helped maintain consumer interest. No longer regarded as a regular personal care staple, the hair care routine has evolved to include sophisticated products, such as serums, masks and oils, targeting specific hair issues.

The European hair care market was valued at $15.9 billion by Euromonitor in 2013, up 1.7% year on year. Shampoo was the largest category at $5.0 billion, followed by conditioners ($2.5 billion) and styling agents ($3.1 billion). The fastest growing European market was Turkey, where sales surged 16.3%, while the UK managed a still respectable 4.1% gain.

The truth of the matter is that it is hard to achieve growth in a mature market such as hair care. In terms of penetration, nearly 90% of European women use shampoo, according to Kantar Worldpanel. There are more opportunities in conditioners, with penetration at just 46% among European women. Only in the UK is conditioner well established within women’s hair care routines, with 67% of women using it.

Frequency of use gives some clues as to the potential for growth. On average, European women wash their hair 2.8 times a week, but use conditioners slightly less often at 2.3 times a week. The UK is the most mature market in usage terms, with women using shampoo 3.1 times and conditioners 2.7 times in a week. Factor in European men, who use very little in terms of conditioner (5%), and it is clear that opportunities for targeting by gender are still there for the taking.

Consumer-led Innovation
Today’s conditioners go beyond the traditional functions of “wet hair, apply conditioner and rinse,” note industry observers.
“The dynamism of the conditioner category can be attributed to changing consumer demands prompting innovation in three key areas: leave-in solutions, new product benefits and the migration of hair oils into the mainstream hair care space,” explained Jamie Mills, associate analyst, Datamonitor. “As consumers recognize the convenience of leave-in conditioning solutions, they are now seeking products which can deliver on more complex and multifunctional benefits.”

The trend toward multifunctional solutions mirrors consumers’ multiple requirements for conditioners. According to Kantar Worldpanel, over half of European women expect conditioners to detangle and moisturize the hair, while a quarter also want these products to smooth and make hair feel silky and soft. Moisturization is a key requirement among two-thirds of Spanish and UK women.

“Brands need to innovate into products which can deliver on these benefits alongside strong efficacy credentials,” maintained Mills, who mentions the increasing number of treatments targeted toward anti-aging, scalp care, hair thickening and intensive repair of the hair.

Furthermore, the use of clinically developed and inspired ingredients is now being incorporated into products such as serums and masks. For example, L’Oréal Elvive Fibrology Double Serum contains Filoxane, an ingredient designed to thicken the hair shaft. Another clinically inspired hair treatment is Dove’s Heat Activated Reconstructor, which includes a regenerating treatment mask and heat activating serum to repair hair at a cellular level and restore protein to the hair shaft.

Hair oils are gaining in popularity, reflecting the initial success of salon brand MoroccanOil, which features argan oil. For example, Timotei Precious Oils Hair Beautifying Mist uses argan oil and almond oil in a formula that claims to intensively moisturize dry hair and prevent frizziness caused by humidity.

Aveda has launched a hybrid hair-body-skin care oil under its successful Shampure brand, which incorporates 25 pure flower and plant essences. Aveda Shampure Composition is said to elevate multi-tasking to an art form, offering eight different ways to use the product, including scalp, bath, nails and massage.

Hair care brands are increasingly looking at new oil sources to differentiate their products and maintain the novelty factor. The use of lesser-known ingredients, such as marula oil and kukui nut oil are likely to satisfy consdemand for oil-based products.

Scalp health is an emerging trend and is claimed in an increasing number of hair care products. Mibelle Biochemistry has adapted technology from skin care to hair care and specifically, the scalp. Launched earlier this summer in the UK, the Salon Science range is designed to treat the scalp much in the same way as skin care. For example, Hydrafoliant Scalp Scrub contains exfoliants that remove skin cells for a healthier scalp.

NPD in Hair Colorants
The European market for hair colorants was valued at $4.4 billion in 2013, according to Datamonitor. Permanent colorants accounted for two-thirds of sales. Like conditioners, the category has benefited from innovation, including the migration of oil technology. For example, Garnier’s Olia claims to be the first oil-powered permanent hair colorant that boosts the coloring process as well as conditions the hair. Formulated without ammonia, Olia uses oil for the penetration of pigments as a gentler alternative to hair coloring.

Mills noted that formulators have created bolder color options, while at the same time developing formulas that can best be described as “super temporary.”

“They allow consumers to instantly change the appearance of their hair depending on the occasion, their outfit and mood, to complement their overall appearance as they would using makeup.”

Moving forward, hair care brands must find gaps in an overcrowded market. For example, niche UK brand White Hot Hair targets white, gray and mature hair that has lost pigment and needs special care to look good. Included in the range is an all-purpose Lifeshine Oil to condition, smooth and add shine, while Shooshing Crème adds texture. The trick for hair care brands will be to preempt changes in demographics and consumer lifestyles by creating new product opportunities.

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Imogen Matthews
Headington, Oxford UK
Tel: +44 1865 764918

Imogen Matthews is a respected consultant, journalist and researcher focusing on trends in the beauty industry. She regularly contributes to many of the world’s foremost beauty trade titles. Every year in April, she publishes The Premium Market Report, focusing on trends in the UK premium beauty markets.
www.thepremiummarketreport.com