PUBLISHER: Mordor Intelligence Pvt Ltd | PRODUCT CODE: 1201052
PUBLISHER: Mordor Intelligence Pvt Ltd | PRODUCT CODE: 1201052
The Middle Eastn hair care market is projected to register a CAGR of 5.26 % during the forecast period (2022-2027).
The COVID-19 pandemic had a negative effect on the Middle East haircare market, which witnessed a minor decline throughout the pandemic period and is currently still in the recovery phase. The beauty and personal market in the region witnessed a notable decline in sales owing to the disruption caused by the COVID-19 outbreak. A similar scenario was observed in the hair care market as well. The industry suffered from a sales slump, rising prices, shrinking profits, and uneven labor policies. Sales in the first quarter went down by huge margins. There were widespread disruptions in the business operations. Most hair care brands and retailers with inventory and shipment operations were ready to scale up the reported e-commerce sales, twice as high as their pre-COVID-19 levels. Furthermore, consumer behavior also underwent a significant near-term shift during the pandemic. Most consumers opted to order hair care products online rather than visiting the stores throughout the epidemic. At the same time, more than half of those polled in an independent survey anticipated resuming their pre-pandemic habits by early 2021.
In the meantime, the Middle Eastern region witnessed an increasing demand for natural and organic products due to the rise in consumer awareness about the harmful effects of certain compounds, such as paraben and aluminum compounds, present in hair care products. This has increased the demand for safe, natural, and organic shampoos, conditioners, hair oils, and hair masks, among others, in recent times. The purchases are based on the product's efficacy, long-lasting protection, and clinical properties. The increase in demand for hair care products in the Middle Eastern region is mainly due to an increase in the young and aspirational populations who invest in grooming and appearance, primarily in the maintenance of their health.
One of the key trends in the market includes hair care products that comply with the halal law, which is also becoming a global trend. Moreover, Gulf consumers prefer personalized products and services, which is further bolstering the growth of the market studied by catalyzing the private-label and indigenous manufacturers to cater to this gap in the hair care industry and secure a position for themselves in the highly fragmented and intensely competitive industry.
The rising fashion trends among the young population, expanding distribution channels, and high purchasing power are the primary factors driving the hair styling products market in the region. The concentration of internet user penetration increased in Qatar, Bahrain, and the United Arab Emirates as the most prominent users. A significant chunk of the population in the United Arab Emirates carries a smartphone in their pocket, placing it at the top list of global smartphone penetration. Convenience, availability of multiple brands, and discounts offered by online retailers have further fueled online sales. With the increasing digital adoption, e-commerce is becoming a reality, reinventing the road to purchase for customers, shaping new user interactions, disrupting business models, and creating new growth opportunities for single and multi-brand stores of hair care products across the Middle Eastern region. It has provided easy access to product-related information and prices to the customers. This has contributed to the overall growth of Middle Eastern hair care products. Market retailers are increasingly using technologies, like augmented reality (AR), to help online customers and improve their e-commerce experience. With the improving logistics capabilities, faster delivery, and hassle-free returns, single and multi-brand retailers are making customers feel more at ease with online purchases, driving the market of beauty and personal care through e-commerce.
African women, in particular, are prone to a type of hair loss called traction alopecia, which is caused by heat, chemicals, and tight styles that pull at the hair root, including some braids, dreadlocks, extensions, and weaves. Unhealthy eating habits, hot weather, and rising pollution levels across the country are some other factors expected to drive the growth of the shampoo and conditioner market in the country. Considering the fact that the country is battling with severe climatic changes, manufacturers operating in this space are innovating new and improvised hair shampoo and conditioners products that not only help them gain an edge over their industry rivals while catering to the demand of the consumers but also reduce their impact on the environment. For instance, in March 2019, P&G launched its first new retail hair care brand "Waterless hair care" in Cape Town. The range is designed to cater to the different hair care needs of all women and includes an ultra-lightweight foam dry shampoo, a residue-free dry shampoo spray, dry conditioners, and alcohol-free hair refreshers. Moreover, increased preference for hairstyling, changing lifestyles, urbanization, and marketing and promotional activities are the primary factors fueling the market growth of professional hair care products like hair loss treatments and professional color protective kits. Owing to these factors, foreign players are marking their presence in the country and introducing professional home care products. For instance, in April 2021, Qiqi, a professional offering sustainable and transformative solutions for hair problems, expanded its presence in South Africa and introduced a range of professional home care products, including professional shampoos, conditioners, and masques, especially for damage repair.
The Middle East & African haircare market is competitive among a few companies such as Loreal SA, Proctor and Gamble, Henkel AG & Co. KGaA, and Unilever. L'Oreal held a prominent market share. The company currently markets its brands and several thousands of individual products in all sectors of the beauty business: hair color, permanents, hair styling. Players are strengthening their presence through online marketing and distribution to increase their market penetration in the region. The prominent market players have been focusing on developing new and innovative products and acquiring new consumer demographics. Additionally, these companies are focusing on increasing their presence across the region by opening new stores.