Scalp Care: Still a Niche Segment with Lucrative Opportunities

Whether they’re for hair loss, itchiness, or an aging scalp, products targeting scalp care continue to be launched by key professional hair care marketers as well as small and medium players around the globe. Scalp care continues to be an important topic for stylists, marketers, and consumers despite accounting for only a few percentages of global salon hair care sales. And while our soon-to-be-published Professional Scalp Care Products: Global Market Snapshot report shows that the market has slowed down, it’s still showing growth in line with overall salon market growth in key global markets.

Brazil is the smallest country market covered in our study but the fastest-growing one, increasing by over 18% during the first half of 2019. This solid growth is mainly driven by changes in distribution, with brands entering and expanding in e-commerce and beauty stores, as well as premium drug stores.

The United States, meanwhile, is the largest market but registers the lowest growth of the 10 country markets covered. The growth in H1 2019 has reduced considerably in comparison to the double-digit growth in 2018 due to limited promotions and new product activity, along with an increase in service prices. The majority of scalp care sales in the United States are generated from the take-home segment, as consumers continue to treat their scalp care concerns outside salons. Hair regrowth and hair loss prevention are the leading benefits customers seek in scalp care products.

In Asia, China registers a robust growth of 10% during the first half of 2019, driven by consumers’ increasing demand for premium services and their desire to maintain healthy hair. Japan is the largest market, however, with growth well behind China. In Japan, new product launches, coupled with an increased consumer awareness, are key contributors to scalp care sales. While in China, scalp care products still focus on basic functions such as deep cleansing, itch/dandruff prevention, moisturizing, and scalp relief, anti-aging is the most addressed function in Japan. Unlike any other country, in China and Japan, most scalp care treatment sales take place in salons.

Scalp care remains a niche segment in most of the European countries we track. The segment advances between 2% and 5% during the first half of 2019, registering growth above the salon hair care market average. Sales are mostly fueled by rising consumer awareness and the growing trend directed toward wellness and health. Take-home sales rise due to the growing prevalence of e-commerce. Anti-aging and hair loss prevention are among the top benefits consumers search for in scalp care products.

The market for scalp care products is expected to grow at a CAGR of 5% through 2024. Education will play a key role in spreading the word about scalp care products to consumers. For an in-depth view on this promising segment, please refer to our soon-to-be-published Professional Scalp Care Products: Global Market Brief report, covering 10 key markets including Japan, China, Brazil, France, Germany, Italy, Spain, the United Kingdom, and the United States. The study dives into products targeting issues related to the scalp, such as hair thinning, hair loss, dandruff, and sensitive scalp.