22 Jun 2021
Posted in Consumer
Philippines’s haircare market to reach US$1.3bn by 2025, says GlobalData
The haircare market in the Philippines is projected to grow from ₱55.5bn (US$1.1bn) in 2020 to ₱64.8bn (US$1.3bn) by 2025 at a compound annual growth rate (CAGR) of 3.2% over the 5-year period, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Philippines Haircare – Market Assessment and Forecasts to 2025’ reveals that the market is majorly driven by the growth of the salon haircare category, which is forecast to register the fastest value CAGR of 7.1% during 2020–2025. The category is followed by styling agents, which is expected to record a CAGR of 4.7% during the same period.
Shifali Heerekar, Consumer Analyst at GlobalData, says: “Increasing disposable income is driving the consumer spending in personal care and hair care products. While shampoos continue to dominate the sector, consumers are also investing in other products such as conditioners and styling agents that engender elevated perceived looks and appearance. Furthermore, the demand for haircare is expected to be boosted by the e-commerce channel, which has gained wider popularity during the pandemic.”
Convenience stores was the leading distribution channel in the haircare market in the Philippines in 2020, followed by ‘hypermarkets & supermarkets’ and ‘health & beauty’ stores.
Per capita expenditure (PCE) of haircare in the Philippines increased marginally from US$10.1 in 2015 to US$10.2 in 2020, which was higher than the regional level (US$7.4) but lower than the global level (US$11.4). Furthermore, the PCE of haircare in the country is expected to increase further and reach US$10.6 by 2025.
Unilever, Proctor & Gamble, and Colgate-Palmolive Company were the top three companies in the country by value in 2020, while Cream Silk and Palmolive Naturals were the leading brands.
Ms Heerekar concludes: “With growing concerns over the harmful effects of chemical-based haircare products, consumers in the Philippines are opting for products which are labelled organic and contain natural ingredients or available in chemical free-options.”