The hair care category remains the star performer in both Canada and the United States, despite the overall slowdown of the two markets. While Canada maintained its overall double-digit growth of 11% in 2022, the United States dropped significantly, from 23% growth in 2021 to only 6% in 2022. What are the key factors behind these divergent growth rates? Which companies and distribution channels are leading the way in these markets?
Canada
The rapid recovery of Quebec and Ontario, the key business regions for most Canadian salon hair care companies, was the main driver behind the market’s robust performance. Marketers dedicated their efforts to rebuilding their businesses, resulting in impressive double-digit growth for industry frontrunners, such as L’Oréal, Olaplex, Kao, Estee Lauder, and Moroccanoil. Among the different product categories, hair care stood out as the fastest-growing one, while the hair coloring and hair styling categories trailed behind the overall market’s growth.
Brick-and-mortar stores emerged as the best-performing channel, with almost 20% growth in 2022. This was mainly powered by the increase in footfall in department and specialty stores, where consumers sought professional products at lower price points than in salons.
United States
Inflation pressure and concerns surrounding a potential economic downturn hampered growth in the U.S. salon hair care market. Moreover, the decline in salon footfall further contributed to the market’s underwhelming performance. Many consumers chose to extend the intervals between salon visits and instead opted to purchase hair care and maintenance products from brick-and-mortar stores or through e-commerce platforms, which collectively increased by 12% in 2022. Despite the reduced number of customers physically visiting salons, these establishments continued to generate sales growth, largely due to increased service costs.
Similar to Canada, hair care remained the main driving force behind the market’s performance, while hair coloring exerted a dampening effect in 2022. Among the top five companies in the industry, L’Oréal, Olaplex, and John Paul Mitchell Systems outperformed the overall market, demonstrating their resilience and adaptability.
For more data on 30 markets, including Canada and the United States, refer to the upcoming edition of our Salon Hair Care Global Series report, encompassing an interactive database that features manufacturers’ sales, market shares, growth rates, and sales channels. The data for most countries is now released, followed by written reports with interactive features and advanced forecasting. Additionally, you can further delve into add-on modules to better understand trending topics such as scalp care and independent stylists, as well as your position in major segments such as hair coloring. Moreover, you can keep an eye on the most important market developments through our mid-year updates and always-on tracking tool.
