1. Consumer Insight
Consumer and Innovation
Trends in Haircare
Shampoos, conditioners, hair colorants, styling agents,
perms, and relaxers
Category Series. Published November 2013

2. Contents
1. Introduction
• Definition and scope
• TrendSights framework
2. Sensory & Indulgence
• SWOT analysis
• Key themes
• Sensory influence
• "Truly natural"
• Premiumization
• Experimentation
3. Easy & Affordable
• SWOT analysis
• Key themes
• Private label
• On-the-go
• Multifunctional
4. Health & Wellness
• SWOT analysis
• Key themes
• Anti-aging benefits
• Scalp health
5. Individualism & Expression
• SWOT analysis
• Key themes
• Consumer segmentation
• Texture-specific
• Co-creation
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6. Comfort & Uncertainty
• SWOT analysis
• Key themes
• Salon style products
• Familiar concepts
7. Sustainability & Ethics
• SWOT analysis
• Key themes
• Ethical ingredients
• Eco-smart packaging
8. Evolving Landscapes
• SWOT analysis
• Key themes
• Single lifestyles
• East meets West
9. Smart & Connected
• SWOT analysis
• Key themes
• Mobile technology
• Informed shopping
10. Conclusions
11. Appendix
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3. Introduction
3
Standard variations continue to dominate the shampoo market
• Standard shampoos accounted for 60% of the global shampoo market with a
total value of $12bn followed by anti-dandruff shampoos ($4.3bn) and two-in-
one formulas ($2.9bn).
• The majority percentage share of standard shampoos and shampoos in
general can be attributed to the fact that it is a necessary purchase in terms of
maintaining personal hygiene, but also that there has been a high degree of
innovation in products which fit into the standard shampoo segment.
• Anti-dandruff shampoos carry the second largest share with 21% which can
be attributed to Asian consumers regionally being very concerned with scalp
care – the Asian anti-dandruff market was the largest globally, valued at
$2.4bn in 2012 compared with $1.4bn for Europe. Growing global interest in
scalp health has also contributed to growing share evident in the fact that the
anti-dandruff segment is the fastest growing haircare segment overall with a
2012–17 CAGR of 7.1%.
Colorants profit from the financial downturn
• The global colorants market has the second largest market share after
shampoos holding 23% of the global haircare market. Permanent colorants
held the largest share of this category with 60% which can be attributed to
consumers demanding more at home hair colorants which are much more
cost effective lasting much longer than other segments in the colorants
category.
• Europe led colorant sales with a market value of $4.2bn in 2012. However the
leading country in terms of value globally was Japan with a colorants market
value of $2bn, followed by the US at $1.6bn and finally Brazil at $1.5bn.
Source: Datamonitor's Market Data Analytics
Shampoos continue to dominate the global haircare space
Coverage snapshot Market snapshot Innovation snapshot Consumer snapshot Trend snapshot
Global: shampoo
market shares
Global: colorant market
shares

4. Sensory & Indulgence
Source: [1] Datamonitor Consumer Survey, 2013; [2] Datamonitor's Product Launch Analytics ; Image: shutterstock.com, 4photos.net, 20134
"Natural" in haircare is important in terms of transparency in the product formulation
Interest in the "natural" trend continues to grow within haircare, impacting haircare ingredient formulations. Consumer awareness of
chemicals and their potentially harmful effects is continually growing in conjunction with with the desire to have simpler and safer
product options. The belief that such options are inherently better for you than highly "chemical-based" products that contain
ingredients such as parabens is evident in the fact that "natural" and "no paraben" claims were the top two claims in haircare product
launches in 2012.
Global: top five claims in
haircare launches, 20122
Natural
No paraben
Private label
Long-lasting
High vitamins
One third
of global haircare shoppers
(34%) feel that
"natural"/organic ingredients
have the highest amount of
influence on their overall
haircare product choice.1
71%
of global haircare shoppers tend to
agree/strongly agree that health and
beauty products formulated with natural
ingredients are better for them.1
Overview Sensory influence "Truly natural" Premiumization Experimentation

5. Availability of information on DIY treatments plays a key
role in homemade solutions
Another factor contributing to the experimentation trend in
haircare is growing knowledge of alternative haircare methods.
Given the openness of access to information sources such as
the Internet, consumers now have more and more ways by
which to gain information to prompt producing their own
shampoo/hair treatments in the home without requiring
commercial products. This is further consolidated due to
demand for "fresh" products with over half of global consumers
(52%) highly/very highly influenced by "fresh" claims when
making personal care and beauty choices1. This creates a
challenge for manufacturers in that consumers may opt to
formulate their own "fresh" innovations at home rather than
purchasing pre-made goods. Nevertheless, manufacturers can
use the formulations from such DIY treatments to inspire their
product ranges to provide fresh and convenient solutions.
Sensory & Indulgence
The novelty factor plays a large part in the consumer desire
to experiment, and one that manufacturers can profit from
For consumers, using novel products and ingredients all add to
the experimentation process. Unique and new ingredient
combinations as well as alternative treatments can all be used to
profit from consumers' interest in finding new ways by which to
enhance the appearance of their hair. For example, over one
quarter of global consumers (26%) believe that beauty products
made with rare/exotic ingredients are worth paying a bit extra
for.1 Therefore, manufacturers can profit from this as consumers
are much more willing to purchase products at a higher price if
they lend themselves to the experimentation trend through
unconventional ingredients. Such ingredients may not
necessarily have a particularly high cost, but consumer
willingness to try could allow for manufacturers to charge a
premium price for the experience.
Source: [1] Datamonitor Consumer Survey 2011; [2] Women's Day, accessed September 20135
Eight homemade hair treatments2
All hair
types
Dull hair Itchy scalp Limp/fine
hair
Dry/sun-
damaged
hair
Oily/greasy hair Frizzy hair Residue-
ridden hair
Raw eggs Sour cream and
plain yoghurt
Lemon juice and
olive oil
Beer Honey Cornmeal/
cornstarch
Avocado Baking soda
Overview Sensory influence "Truly natural" Premiumization Experimentation

6. Easy & Affordable
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Overview Private label On-the-go Multifunctional benefits
Dry shampoos and one-step treatments are ideally suited to cater to consumers seeking quick and convenient haircare
solutions
Source: Datamonitor's Product Launch Analytics [1] Unilever January 2013; Image: Axe website 20136
Lāfes "all-natural" dry
shampoo by Lāfes Natural
Body Care – A tinted dry
shampoo in black, brunette,
red, and blond colors, this
product provides "a quick
and easy alternative to
washing hair with water" in
order to remove oil and odors
as well as giving hair added
volume.
Axe Reset waterless
shampoo foam by
Unilever – A dry
shampoo for men
designed to refresh hair
"when a shower isn't an
option" to remove "the
greasy/oily morning after
look," resulting in hair
"that looks and smells
great."1
Define Hair Care dry
shampoo by Lilleborg
AS – A dry shampoo in
spray form for use
specifically on dry hair
types. The product
claims to absorb "oils
from the hair and scalp,"
catering to consumers
concerned with hair
dryness and cleanliness.
.
Volumizing dry shampoo
lift powder by Keratin
Complex – This product
claims to remove dirt and oil
to leave hair softer and
healthy-looking, with variants
for blondes and brunettes as
well as a neutral option. The
product is applied using a
brush rather than the
traditional spray.
Syoss "anti-grease" dry
shampoo by Henkel
Belgium – A new "anti-
grease" dry shampoo that
is for use on "hair that
becomes greasy quickly,"
keeping hair clean without
washing, specifically for
greasy hair types.
Herbal Essences
Honey I'm Strong
rinse-off treatment
by Procter &
Gamble – A new
rinse-off treatment
that is designed to
protect the outer
layer of each hair
strand to make it 10
times stronger in just
one wash.