The European haircare market post-pandemic is in good shape. Forecast by Euromonitor International to be valued at $21 billion in 2022, hair care remains one of Europe’s most valuable beauty categories. “Skinification” is a key driver for the sector, along with a growing trend for brands to take steps to become more environmentally sustainable.
According to Euromonitor International, Germany ($4.1 billion), the UK ($2.3 billion), France ($1.86 billion), Russia ($1.83 billion) and Italy ($1.4 billion) remain the highest value hair care markets in Europe. At the top of the shopping lists are shampoo ($7.3 billion, +5.4%); home hair colorants ($4.0 billion, +3.7%) and conditioners and treatments ($3.3 billion,+5.5%).

Euromonitor predicts salon professional product sales will rise 7.3% this year to more than $2.1 billion. During the pandemic, when hair salons were shuttered, salon brands benefited from consumers searching for ways to replicate the professional hairdressing experience in their own homes. At the time, Scottish hairdresser-to-the-stars Sam McKnight reflected long and hard over how best to develop his Hair by Sam McKnight range. Despite the formulas already having been decided on before the pandemic, McKnight decided to replace them with vegan alternatives, and the packaging was ditched in favor of recycled plastic.

The result is a pared-down range based on the type of products that McKnight uses regularly on his clients. Hair by Sam McKnight includes Deeper Love, a conditioning mask with the strengthening molecule Rep’Hair and restorative Crodabond, aimed at consumers with colored or overprocessed hair—who account for more than 90% of McKnight’s customers. The line also includes Happy Endings nourishing balm, containing shine-boosting “vegabead” microcapsules that claim to work form outside in to nourish and style the hair.

Gray Hair Is On-Trend

Another pandemic-induced trend was the number of consumers who embraced their naturally graying hair, rather than risk the tricky transition from professionally dyed hair to natural gray. Financial constraints caused by the pandemic saw consumers reprioritize their purchases. Many decided that box of colorant was not all that essential, according to Kayla Villena of Euromonitor.

“Some did not return to regular dyeing when restrictions eased,” Villena recalled. “Normalization of gray and curly styles continued in 2021, with Andie McDowell and Jodie Foster debuting natural gray hair on the red carpet in Cannes.”

One of the first to cater to the needs of graying hair was Pantene with its “Grey & Glowing” range.

“However, innovation in targeted products remains slow, thus opportunities remain for brands within this space,” she added.

Sustainability Moves Up

L’Oréal is a leader in environmentally sustainable hair care. Euromonitor notes that the company is testing plastic packaging that uses recycled captured carbon. If successful, the world’s largest beauty company will incorporate it in shampoos and conditioners in 2024.

“The company is doing other internal work with packaging partners in the recyclable paper bottle and tube space,” states Villena.

Meanwhile, L’Oréal’s Pureology was reformulated to be 100% vegan in 2020. Solid formats and refill packs are gaining ground among brands operating on the European haircare market. GlobalData cites Schwarzkopf’s Solid Shampoo with seven herb extracts (Spain), which is packaged in a paperboard box and said to be equivalent to a 330ml bottle of shampoo. The solid format also lends itself to multi-use, such as L’Oréal Men Expert Barber Club Solid Shampoo and Wash Bar for hair, face, beard and body.
Johnson’s Baby Shampoo Eco Refill pack (UK) is the first refill pack from the brand.

A Focus on Skinification

As consumers increasingly perceive their scalp and hair as an extension of the skin, ingredients and formats first seen in skin care continue to inspire innovation in the hair care sector.

“The hair and scalp are focal areas of the appearance and consumers are interested in products that can deliver superior benefits and care to these areas,” explains Lia Neophytou of GlobalData plc. She highlights L’Oréal Paris Elvive, Hydra Hyaluronic Acid Serum, which is infused with a “2% care complex with hyaluronic acid.”
“Its inclusion in a hair care product could generate curiosity about its efficacy and benefits for the hair,” she stated.

Another more unusual adaptation is Tarte’s Hair Concealer. Described as a “full coverage cream-to-powder hair concealer,” the product can be applied to touch up roots, contour the hairline and fill in thin spots of gaps in the hair.

“The product mimics a traditional makeup skin concealer both with its functionality and format, thus appealing to consumers seeking familiar, easy to use haircare solutions,” said Neophytou.

Villena has noted greater demand for healthy looking hair, specifically in scalp health, the microbiome, skin-influenced ingredients, bond-building and ingestibles.

“The term ‘skinification’ has widely been used within hair care to describe the adoption of skin care-like ingredients and formulations, with the scalp acting as a natural extension of facial skin care,” she noted. “Not only are we seeing these value-driven trends in Western Europe, but also in North America and Asia Pacific.”

According to Villena, British brand Philip Kingsley leads in scalp expertise and has had clinical expertise in trichology for many years. Meanwhile, skin care brands Gallinée and Venn are launching probiotic hair care products, drawing from their expertise on the skin microbiome.

“Maintaining the hair and scalp’s microbiome helps with issues such as irritation and fragile hair, and both of those brands have been doing a great job at educating consumers on these benefits,” she points out.

Looking to 2023 and beyond, Villena expects only slight growth in Western Europe; growth in shampoos and conditioners offset by a contraction in styling agents. Eastern Europe is expected to experience strong growth in colorants.

“There will be growth…specifically through premiumization, expansion and demographic targeting,” she predicted.

In particular, salon professional products with a trusted positioning are expected to grow in Western Europe.