SALON HAIR CARE

Australia Market Analysis and Opportunities

THIS IS A FICTIVE REPORT

July 2022
DESIGNED FOR RECRUITMENT PURPOSE ONLY

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Contents
1 Introduction

2 Salon Hair Care Market in 2018

3 Category Performance

4 Competitive Landscape

2
 Introduction

Scope

• This report analyzes the Australian market for consumable salon hair care products sold to professional
salons for back-bar and take-home use in the full calendar year 2018.
– Back-bar products are defined as products used by stylists on consumers for services performed in
the salon.
– Take-home products, which are also known as salon retail products, are defined as those
professional hair products sold to consumers for use at home.

 The focus of this report is on products sold and used in salons.

– It also includes the sale of products from hair salon brands through other channels, whether
diverted or legitimate, including beauty supply stores, mass merchandisers, food stores, drug
stores, cosmetic specialty stores, warehouse clubs, other mass outlets, and the Internet.
– The geographic scope of this report is Australia.

 All data are expressed in manufacturers’ sales unless noted otherwise.

– Manufacturers’ sales refer to the price received by the marketer before distributor and/or retail
markups.

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 Introduction

Category Descriptions

Conditioners

Moisturize and treat the hair. Available in a variety of formulae. Detangle and soften the hair. Includes “instant” products,
therapeutic conditioners, and leave-in conditioners, deep conditioners, as well as hair oils.

Hair coloring products

Designed to change the level of pigmentation and tone of natural or colored hair by varying degrees of intensity and
permanence. Includes permanent, semi-/demi-permanent, toners, bleaches, and other color products.

Hair straightening and perming products

Designed to re-texturize the hair, either permanently or semi-permanently. Excludes devices used to curl or straighten the
hair, such as curlers, curling irons, and flat irons.

Hair styling products and sprays

Covers a variety of products for controlling and enhancing the appearance of hair.

Shampoos

Cleanse the hair and scalp while removing dirt, oils, and buildup caused by the environment and by other hair care
products.

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 Market Size

Market Size and Growth

• The market size of the Australian Salon Hair Care market in 2018 accounted for 213 AUD Million, which
is 1.76 % up compared to 2017.
– Innovation and education are key factors driving the market.
– There are key product launches such as organic products which are slowly gaining popularity
among consumers.
– Relationship with distributors, wholesalers, and the salesman is also helping drive the demand for
salon hair care products.
– Barbershop is another area that is witnessing significant growth in the last couple of years. It is
growing at a rate of 15-20%.
– Mobile hairdressers have also increased significantly in the last couple of years contributing to this
growth. These hairdressers procure products from wholesalers.
– However, it can be observed that the market is flat with minimal growth. This is due to a decrease
in the frequency of consumer visits to salons and an increase in online visits. The products are
available at comparatively cheaper prices hence consumers often purchase products through e-
commerce channels.
– This is also due to economic challenges in certain parts of Australia. For example:
– The mining sector in the western part of Australia is significantly down which has affected the
income of the working class.
– Housing prices have declined drastically and as a result of this people do not have the money for
luxuries.
– There has been a substantial increase in the barbershop business and American Crew is growing
significantly due to the growing popularity of the barbershop trend.

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 Market Size

Market Size and Growth

Figure 1: Sales and Growth of Salon Hair Care Products in Australia, 2017 to 2018

 Size of the salon hair care market accounted for 213 AUD Million in 2018 (AUD Million) as compared to
209.3 AUD Million in 2019, a year-on-year increase of

214

213

212

211

210

209

208

207
2017 2018

Series 1
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 Key Trends and Developments

Key Trends and Developments

• In Australia, the trend of vegan, natural, and organic products is rapidly unfolding and is expected to
reach new levels in 2018. In the past year 2017, 22% of all beauty and cosmetic consumers in Australia
purchased organic products.”
• Virtual Imaging and Augmented Reality is the latest trending technology in the salon hair care market in
Australia and is bringing revolutionary changes. On January 07, 2018, Henkel launched SalonLab
Analyzer, an augmented reality-based handheld device that can give a preview of one’s looks before
committing through an in-depth analysis of hair profile or it is Loreal’s hairstyling app which lets one try
different hairstyles and colors.
• The manufacturers are investing more actively in the attractive packaging of the product while packaging
material includes, flexible packaging, rigid plastics, rigid metal, and several others. For instance, Rigid
plastics are the most commonly used pack material in the Australian hair care sector, followed by flexible
packaging and rigid metal.
• Bond builders continue to be growing in double digits in 2018 and Olaplex is the pioneer in this category.
• Permanent hair colors are in great demand among the consumers and the real trend is for bright colors
such as blonde in women and grey coverage among men.
• There is an increase in demand for ammonia-free and sulphate-free products.

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 New Product Launches

New Product Launches

• Shampoos and conditioners:
– In February 2018, Wella Professionals launched Wellaplex Bond, a tool that is designed to ensure
the health of one’s hair throughout all the stages of the coloring process, no matter how dramatic
the change. The new range of three products enables colorists to perform bold changes on hair
while ensuring it stays healthy in the salon and at home. It experienced double-digit growth in
2018.
• Hair coloring:
– On March 15, 2018, Kao Corporation launched the new hair coloring product "Pure Pigments”
which is based on a new nonreactive hair dye developed through joint research with FUJIFILM
Corporation and Dresden University of Technology in Germany. The technology elevates hair color
with vibrancy and brilliance and makes it possible to achieve a wide range of colors and hues with a
multi-dimensional color result, in which the hair color changes vividly in response to hair
movement and light.
– On December 10, 2018, Revlon Professional launched new Revlonissimo Intense Blondes built from
hyaluronic acid and soy protein for covetable results.

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 Category Performance

Category Performance

Key category developments

 Please add a sentence on what is the largest category with its sales and growth
– Add reasons for growth/decline and drivers
– Add what is the fastest growing category and reasons for its strong growth
– Any category trends and developments
– If necessary, please feel free to add one more page – but keep it succinct.

Figure 2: Sales Share of Salon Hair Care Products

Table : Sales by Category, 2018
in Australia by Category, 2018
2018 Change, %
Brand (Company) AUD % Of total
Million (2017-2018)
PREPARE A PIE CHART WITH THE
Shampoos and conditioners BELOW DATA
Hair coloring products Shampoos and conditioners - %
Hair styling products Hair coloring products- %
Hair straightening/perming products Hair styling products - %
Total 100.0 Hair straightening/perming products -%
Total: X AUD Million
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 Category Performance

Category Performance

Key category developments

 Hair Coloring is the largest category with a market share of 55-70% in 2018 as compared to 2017, a year-on-
year growth of 1%.
 Add reasons for growth/decline and drivers
– Lots of new products in the market such as Pure Pigments, Revlonissimo Intense Blondes, etc.
– No ammonia, fashion colors are the trends in this category.
– The real trend is for bright colors such as blonde in women and grey coverage among men.
– Permanent hair colors are in great demand among the consumers
Figure 2: Sales Share of Salon Hair Care Products
Table : Sales by Category, 2018
in Australia by Category, 2018
2018 Change, %
Brand (Company) AUD
Million
(2017-2018) % Of total
Percentage share
Shampoos and conditioners 26.6 0 12.5 2.5
7.5 12.5 Shampoos and condi-
Hair coloring products 133.1 4.1% 62.5 tioners

Hair styling products 16.0 0 7.5 Hair coloring products

Hair straightening/perming products 5.3 -66.9 2.5 213 AUD Million Hair styling products
Total 180.9 100.0
Hair straightening/perming
products
62.5

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 Competitive Landscape

Figure 3: Top Five Companies in Australia: Key Highlights in 2018

Total market

Change %
AUD Million % Of total
(2017-2018)
Company

1 L’Oreal 52.5 25% +2.9%

2 Coty 30 14-15% +2-4%

3 Kao 17 8% -15%
4 Revlon 13 6% +15-20%

5 De Lorenzo 10%

All other companies

Total Market 100.0

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