ohnson launched a multi-faceted self-care brand with a variety of face, body, and hair products. Meanwhile, singer and serial entrepreneurs Beyoncé Knowles-Carter and Rihanna launched direct-to-consumer hair-care lines, Cécred and Fenty Hair, on February 20 and June 13, respectively.  We have seen the rise and fall and rise again of celebrity fragrance launches, but what is behind celebrities, and entrepreneurs with less name ID, launching a hair-care lines?  The rise of the hair care industry Newbies and veterans of the retail industry alike are well aware of the “lipstick effect”, a retail phenomenon referring to the increased demand for affordable luxuries during difficult economic times.  In previous periods of economic hardship, sales of lipstick and similar small purchases  held dominant. More recently, fragrance products, like candles and perfumes, have been in high demand, as consumers seek out self-care and entertainment.   Now, data has revealed an emerging category in the beauty industry: hair care.  According to market research firm Fortune Business Insights, the global hair-care market was valued at $99.5 billion in 2023. The market is projected to grow from $106.9 billion in 2024 to reach $213.4 billion by 2032 at a compound annual growth rate of 10.4 per cent during the forecast period.  As reported by German research and analytics platform Statista, hair care makes up one of the largest shares in the global beauty market, approximately 22 per cent as of 2022, second only to the skin-care market.  Target isn’t the only big-box retailer trying to increase its foothold in the hair-care game.  This July, New Zealand entrepreneur Jaimee Lupton, who has previously launched beauty brands Monday Haircare and Osāna Naturals in the US retail market, teamed up with Walmart to launch the retailer’s exclusive hair-care brand, Being.   Factors behind the growing interest in hair care Bethany Paris Ramsay, the founder of beauty marketing and communications firm Honey B, noted that the rise of the hair-care market is driven by several factors: social media influence, rising rates of hair loss and a growing interest in hair-care education.  Ramsay explained, “I think the pandemic was a major turning point for hair care. Consumers were under new kinds of stress in every aspect of their lives, including or unrelated to Covid, and for many, their hair was impacted in ways they hadn’t experienced before. So many women in particular, and I mean young women in their 20s and 30s, have gone through hair loss and have been looking for solutions ever since.” Pepperdine Graziadio Business School adjunct professor and seasoned beauty executive Kimber Maderazzo seconded Ramsay’s observation.  “The influx of hair care success directly reflects what is going on in life today: stress, nutrition, medication, pregnancy, menopause and so many other reasons. Due to life issues, we are starting to see things like thinning hair in younger generations,” Maderazzo told Inside Retail. Survey data published by the Dermatology & Cutaneous Surgery Institute (DCSI) in January 2022 confirmed that nearly two-thirds of Americans aged 35 years and above are suffering from hair loss or hair thinning.  Maderazzo also pointed out that “people used to go to dermatologists for these types of treatments, but now there are so many solutions at retailers that can help. The consumer is realizing this is an important category and it is going to continue growing.” Ramsay suggested that another factor behind the growth of the hair-care market is linked to customers’ ever-tightening grips on their wallets.  “We have to consider the rising cost of living, instability with jobs, concerns over the state of the economy, similar to the forced at-home time in 2020, this also brings consumers home with more of their hair care practices as an effort to save money. If products exist to increase the time between haircuts, dye jobs, and expensive in-salon treatments, consumers are intrigued,” she said. “Naturally, the uptick in DIY behavior is major for retailers to stock products that contribute to these solutions overall. Like skin, hair is something consumers view as being ‘worth the investment.’ They’ll shell out for less expensive products if it means it saves them money in the long-term with less professional-reliant services.” Ramsay added that TikTok has provided consumers with a wealth of hair-care education content, ranging from scalp care methods like consistent use of oils to the practice of wearing satin or silk bonnets to bed.  “Black creators, often the real innovators for so many beauty trends, have shared longtime practices and rituals with their viewers and it’s spread to other communities now,” she said. “Everyone wants to keep their hair as healthy as they can and wrapping your hair before bed is now ‘on trend,’ whereas previously consumers had maybe only opted for a silk pillowcase to address these concerns.” What’s next in store for the hair care market? While retailers rush to establish their foothold in the hair care market, there are a few trends to keep in mind when determining what type of brands and products to launch.  As Maderazzo and Ramsay both noted, there is an increasingly large priority amongst customers for products to alleviate hair loss and damage. Data from Grand View Research confirmed a growing interest in these types of products, noting that the global hair growth supplement and treatment market size alone was worth approximately $7.74 billion in 2023. This market is expected to grow at a CAGR of 6.15 per cent from 2024 to 2030. With an ever-increasing awareness of product ingredients, customers want a greater variety of options, especially ones with cleaner formulations for those with allergies and other skin sensitivities. Also, Ramsay observed an increased interest in hair-related supplements that don’t contain biotin, a B-complex vitamin with known benefits for skin and nail growth, as it can cause inflammation for acne-prone consumers.  Many consumers also want more eco-friendly options, from ingredient sourcing to “greener” packaging materials, like those made out of recycled paper resources.  As the hair-care market continues to grow, retailers need to be aware of the multi-faceted concerns of their audience base and figure out ways to provide the most effective solutions at an appealing price range with aesthetically pleasing packaging.