The haircare sector in Australia is forecast to grow from A$1,130.3m (US$786.2m) in 2019 to A$1,367.4m (US$932.2m) by 2024, recording a compound annual growth rate (CAGR) of 3.9%, says GlobalData, a leading data and analytics company.

GlobalData’s report, ‘Australia Haircare – Market Assessment and Forecasts to 2024’, reveals that the shampoo category led the sector with value sales of A$350.8m (US$244m) in 2019, followed by conditioner and hair colorants categories. Furthermore, styling agents category is forecast to register the fastest value growth at a CAGR of 5.6% during 2019–2024 and it is also expected to gain maximum market share from other categories during the same period.

Susmitha Bynagari, Consumer Analyst at GlobalData, says: “Consumer awareness and education on product ingredients gained substantially over the years, nudging them towards the products with organic/natural claims. As the trend continues to gain in strength, the market witnessed the launch of several new products in recent times.

“Basic cleansing and conditioning benefits alone are no longer enticing consumers, who are now looking at additional benefits that tend to suit their individual needs, leading to the emergence of products that claim better hydration and those that address breakage and thinning among others.”

The per capita consumption (PCC) of haircare in Australia is high compared to the regional and global averages. It stood at 4.4 units in 2019 and is expected to decrease in the next five years to reach 4.3 units by 2024.

L’Oreal SA, Unilever and Procter & Gamble are the top three companies in the Australian haircare sector accounting for a combined value share of 63.1% in 2019.

Among the distribution channels, hypermarkets & supermarkets led the sector with a value share of 43.1% in 2019.

Ms. Bynagari concludes: “With the growing health awareness among the Australian consumers, the demand for haircare products with health and wellness claims such as ‘free-from’ and ‘organic/natural’ ‘is expected to increase, particularly in shampoo and hair colorants categories.”