SHAMPOO, CONDITIONER &

STYLING
GLOBAL ANNUAL REVIEW
April 2016

2016 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel.

 Agenda
Market Overview
Knowing your consumers
Whats happening now
Notable products of the past year
Looking into the future
Analysts Views

2
 Market Overview

3
Top 5 markets for sales of shampoo and conditioner 2015

Source: Economist Intelligence Unit, U.S. Census Bureau, Information Resources, Inc., Economist Intelligence Unit,
4 ABIHPEC, The Ministry of Health, Labour and Welfare of Japan, The Ministry of Economy, Trade and Industry of Japan, Fuji-
Keizai Group, Mintel
Key Market Data Shampoo and Conditioner

China is the largest market for sales of shampoo and
conditioners, with the US and Brazil in second and third
place. Of the top five markets, India (12.6%), Brazil (9.0%)
and China (7.9%) show significantly higher than average
growth for the category in local currency terms over the last
five years.
Many developing countries are showing strong growth with
Indonesia leading the way and growing by 23% on average
annually. The biggest decline is in the developed countries,
with Switzerland declining the most with a 3.8% drop in
2015. Outside of the top and bottom five markets, South
Korea shows modest but above average growth of 6.1% for
2015.

Top 5 fastest and slowest growing markets for shampoo & conditioners, annual growth in local
currency, 2014-2015
Fastest growing % Growth 2014-2015 Slowest growing % Growth 2014-2015
Indonesia 23.0 Switzerland -3.8
Turkey 15.3 Finland -1.7
Vietnam 12.7 Italy -0.7
India 12.6 Norway -0.7
Brazil 9.0 Austria -0.5
Total category average is 3.9%

Source: U.S. Census Bureau, Information Resources, Inc., Economist Intelligence Unit, Mintel Information
5 Resources, Inc., Mintel
 Key Market Data Shampoo and Conditioner

Claims around botanical/herbal ingredients still lead in shampoos and conditioners and companies continue to convey their
products goodness by calling out well-known ingredients.
The brightening/ illuminating claim comes second but growth in product launches with this claim is levelling out as it becomes
well-established.
Paraben-free is the only free from claim to be in the top 10 with almost one in five product launches claiming this benefit.
Brands in Asia continue to compete in terms of ingredients and the contributing benefits to attract consumers while remaining
competitive in the category. Humidity in Asia leads to hair frizziness and thus brands that label hydration are better received
among consumers.

Global launches of shampoos and conditioners, % by top 10 APAC launches of shampoo & conditioner, % by
claims, 2015 claims, 2015
% launches % launches
Botanical/Herbal 61 Botanical/Herbal 64
Brightening / Illuminating 39 Brightening / Illuminating 42
Moisturising / Hydrating 36 Moisturising / Hydrating 34
Damaged Hair 28 Damaged Hair 32
Vitamin/Mineral Fortified 22 Vitamin/Mineral Fortified 22
Paraben Free 19 Paraben Free 17
Ethical - Animal 16 Ethical - Animal 17
Time/Speed 15 Time/Speed 15
Long-Lasting 12 Long-Lasting 14
Ethical - Environmentally Ethical - Environmentally Friendly
Friendly Package 12 Package 13

6 Source: Mintel GNPD

Top 5 markets for sales of hair styling products 2015

7 Source: U.S. Census Bureau, Information Resources, Inc., Economist Intelligence Unit, Information Resources, Inc.,
Mintel
Key Market Data Styling Products

Within hair styling, the US still dominates sales globally in
dollar terms. However China is the only country in the top 5
to be growing above average (local currency terms), seeing
8% growth compared to an average of 2.4% between 2014-
2015, with the other four leading markets showing either
below average growth or declines.
Notably, developing countries such as India and Brazil are
also showing increased growth in the hair styling market.
Japan is still in decline along with other developed countries
like Switzerland. Outside the fastest growing markets, South
Korea shows modest growth of 3.8%, higher than the
industry average for 2015.

Top 5 fastest and slowest growing markets for hair styling products, annual growth in local currency,
2014 - 2015
Fastest growing % Growth 2014-2015 Slowest growing % Growth 2014-2015
India 20.5 Italy -3.8
Turkey 14.9 Japan -3.8
Brazil 13.9 Belgium -3.4
Indonesia 11.1 France -3.4
Thailand 8.2 Switzerland -3.0
Total category average is 2.4%

Source: Economist Intelligence Unit, U.S. Census Bureau, Information Resources, Inc., Economist Intelligence Unit,
ABIHPEC, The Ministry of Health, Labour and Welfare of Japan, The Ministry of Economy, Trade and Industry of Japan,
Fuji-Keizai Group, Mintel
8
Key Market Data Styling Products

For styling claims, functionality is still the highest priority for consumers; long-lasting is the most common claim on pack.

Global launches of styling products, % by top APAC launches of styling products, % by top 10
10 claims, 2015 claims, 2015
% launches % launches
Long-Lasting 45 Long-Lasting* 48
Brightening / Illuminating 37 Brightening / Illuminating 43
Botanical/Herbal 23 Moisturising / Hydrating 32
Vitamin/Mineral Fortified 16 Botanical/Herbal 31
Time/Speed 16 Damaged Hair 21
Moisturizing/Hydrating 15
Male 16
Protects against elements 14
Vitamin/Mineral Fortified 16
Male 13
Time/Speed 15
UV Protection 12
UV Protection 15
Ethical Animal 10
Protects Against Elements 13

9 Source: Mintel GNPD

 Knowing your consumers

10
Most consumers are practical

Most consumers are driven by functional needs and trust: 57% of Chinese shampoo/ treatment users will try new brands if they
fit with their needs and 42% will try haircare products recommended by friends.
A majority of shoppers are value-driven, meaning that they want trustworthy products with good value. They use stores that are
recommended by others so that they dont have to worry about overpaying or wasting time, or they use stores that are running a
promotion.
China - Motivation for product switching within haircare,
January 2015

Base: 2,994 internet users aged 20-49, who have used shampoo/hair treatment products in the last 6 months
11 Source: QQ Survey/ Mintel
Health of scalp is key concern

Consumers think that overall health directly affects the quality of the hair just as much as use of haircare
products. It is important for brands to address consumers hair concerns and market the functions and
benefits that will meet their needs.

China factors considered important for hair health, Oct 2015

Base: 2,000 female internet users aged 20-49, 1,000 male internet users aged 20-49
12 Source: QQ Survey/ Mintel
Higher usage of treatment products among females

Female users believe more in ingredients contained in haircare products (eg natural essential oil) as well as
frequency of styling hair (eg perming, colouring) in terms of influencing hair health.
For women, brands need to be more specific about the benefit of each active ingredient in the product and
explain how the product works in detail on the hair, as well as demonstrating the results.

China - Haircare products usage, by gender, Oct 2015

Base: 2,000 female internet users aged 20-49, 1,000 male internet users aged 20-49
13 Source: QQ Survey/ Mintel
 Whats Happening Now
Anti-ageing claims see a youthful boost
Alternative formats become mainstream
Tailor-made haircare speaks to consumers
Professional salon brands enter mass markets

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Anti-ageing claims see a youthful boost

Multiple facets of anti-ageing haircare means that companies have many avenues they can approach when
developing their product portfolio. There are three main approaches in terms of anti-ageing from a haircare
perspective:

Problem - protection from elements such as UV or weather

Prevention
Solutions SPF factor in products

Problem - tactile and visual cues of ageing on hair like dullness,

brittleness and roughness plus signs of general breakage
Repairing Solution - Strengthening, smoothing products

Problem - Includes thinning as well as hair loss itself

Hair Loss
Solution anti-hair loss actives, volumising, thickening products

15 Source: Mintel
Anti-ageing claims see a youthful boost

In UK, 20% of male anti-ageing product users focus on hair
condition while 21% of female users (aged 16-34) use anti-
ageing haircare products to address the issue of aging hair.
Hair loss is more prominent amongst men, therefore anti-
ageing haircare products can hold appeal with a male
audience.
In the US 53% of haircare users are interested in anti-
ageing haircare products. When asked further about the top
five additional benefits wanted from anti-ageing haircare,
thickening and volumising both ranked within the top five.

US, top 5 additional benefits provided by anti-ageing haircare products, April 2015

Base: 1,893 internet users aged 18+ who use haircare products
16 Source: Lightspeed GMI/Mintel
APAC: Hair loss and dry hair are the top 2 growing concerns
Consumers understand that stress, environmental damage, and everyday washing can harm the scalp and
cause dull hair. Scalp-related problems such as dandruff, greasy hair, and hair loss remain the top concerns
among Chinese consumers.
Promoting a healthy scalp has been a major trend over the last five years in China as consumers are more
aware that only a healthy scalp can nurture beautiful hair. Some 47% of consumers believe a healthy scalp is
one of the major reasons for healthy hair.

Hair concerns, Feb 2013 and Oct 2015

Base 2013 2,977 internet users aged 20-49 who use haircare products; 2015 2,000 female internet users aged 20-49,
1,000 internet male users aged 20-49
17 Source: QQ Survey/ Mintel
Anti-ageing claims see a youthful boost
Oribe Imperial Blowout
Transformative Styling
Crme ( USA)
This product is described as a
transformative blowout crme
formulated with skincare technology
to smooth away signs of damage
and ageing for hair that looks and
feels healthier and younger after just
one use.
18 Source: Mintel GNPD
Nioxin Rejuvenating Elixir
(UK)
This product is described as a
leave-in elixir to help rejuvenate hair
texture, leaving it soft, manageable
and with natural movement,
retaining hair moisture for longer
and protecting hair from
environmental damage; and
lightweight, flexible polymers to
wrap around the hair for a balanced
style without any stiffness.
Angelis Soft Touch Instant
Restorer
(Argentina)
This product has been formulated to
restructure the hair fibre and
penetrate the core of the hair. It
exerts a restorative action, and
returns vitamins and proteins
necessary to provide youth,
brightness and silkiness.
Dry formats become mainstream

Matrix Waterless Clean &

Aveda Dry Shampoo
Although dry shampoo is still a Full Dry Shampoo
(UK)
small segment of the shampoo (USA)
category (4% of global launches in
2015), it is growing.
UK health and beauty retailer
Boots UK, has created a separate
dry shampoo section in most of its
stores.

Features 99.8% naturally derived plants, This dry shampoo is designed to create
non-petroleum minerals or water, as well body in an instant to help retain the look
as a Calming aroma comprising 25 pure and body of a blow dry whilst leaving hair
flower and plant essences. The first feeling clean with airy movement.
beauty company manufacturing with
100% wind power.
19 Source: Mintel GNPD
From dry shampoo to dry styling

Companies are creating new sub-categories, like dry styling, and could look to bring product formats such as
2in1 shampoo and conditioners up-to-date with improved claims around convenience and sustainability.

Schwarzkopf got2b Xpress Dry Batiste Texture Me Texturizing

Styling Spray Spray
(Denmark) (UK)

20 Source: Mintel GNPD

Co-washes slowly gaining traction

Cleansing Conditioners

In the US, 65% of haircare users are interested in

using a cleansing conditioner, up 7% points
compared to 2014.

Co-washes provide added convenience by

cleansing and conditioning in one step thus
reducing the water footprint by removing another
product from the hair washing regime.

Going no-poo provides a solution for consumers

with dry hair to cleanse without stripping essential
oils from the hair.

Even though co-washes represent only a handful

of product launches, it is a growing niche that will
continue to gain traction with consumers.

Living Proof Curl Conditioning Wash

(USA)

21 Source: Mintel GNPD

Tailor-made haircare speaks to consumers

Mintel trend Make it Mine highlights that for consumers,
personalisation is a right, not just a privilege; over a third of
US 18-24 year-old luxury goods buyers define luxury
products as those that offer customisable choices
In January 2015, Dove launched its #LoveYourCurls
campaign in the US, to coincide with the launch of Dove
Quench Absolute haircare range designed specifically for
naturally curly hair. The campaign includes a customizable
e-book, online videos, and a hashtag social media campaign

One of many Dove #LoveYourCurls campaign posters

22 Source: Mintel
Tailor-made haircare speaks to consumers

Boosters and top-up products may provide a simpler route for brands to appeal to consumers who want a
hand in customising their own products without the need for extensive and costly consumer research.
Customisation can go a step further in haircare by following the Bomba trend in Brazil a method by which
shampoo users add extra vitamins to their regular shampoos to customise them.
ORS Shealicious Shine Booster Shea
Butter Conditioning Hair Treatment L'Oral Elseve Booster Repair Serum
(UK) (Brazil)

23 Source: Mintel GNPD

Professional brands entering mass

The first Toni & Guy salon opened its

door in 1963. In 1997, T&G launched the
essensuals hairdressing brand, which
became the fastest-growing business
T&G had launched to date.
Countries available: SE Asia, India, U.K

Founded by a chemist named

Schwarzkopf in 1898, who invented and
marketed the first powder shampoo.
Schwarzkopf became a Henkel company
in 1995.
Countries available: SE Asia, Europe

24 Source: Products Sites

Professional brands entering mass

John Frieda formed his professional hair

care range in 1989 and eventually sold it to
Kao Company in 2002. He first launched
his products in drugstores which quickly
captured a mass-market share.
Countries available: APAC, UK

Celebrity hairdresser and a pioneer

member at Toni & Guy for 20 years, Phil
Smith created his award-winning, self-titled
haircare line to give women gorgeous and
healthy hair.
Countries available: Singapore, UK

25 Source: Brands Sites

Perfumed shampoo begins to take the next step

KeraSys Perfumed Line is the first and most

popular product in the perfumed shampoo
market. It contains a mixture of fragrant
essential oils to give hair a pleasant scent and
natural herb extracts to revitalize hair damaged
by frequent curling and drying.

Perfume Detail Note

Top Orange Blossom, White Peach &
Freesia Bouquet
Middle Jasmine, Magnolia & Daisy
Bottom White Musk, Soft Ember &
Cedarwood

26 Source: Mintel BPC

Reverse-wash trend introduced by salon-inspired brands

TRESemm is maximizing the novelty impact of

Beauty-Full Volume with a robust marketing program
across print and digital featuring Chrissy Teigen as
well as partnering with digital influencers who will be
chronicling their reverse-wash journey through a series
of videos on YouTube and in paid media in order to
leverage the reverse-washs grass-roots following.

27 Source: Mintel BPC

 Notable Products of the Past Year

28
Notable Products of the Past Year

New Textures Cream to Powder

This product can be used as a dry shampoo or

as a styling paste to add a second-day of
texture and hold to slept-on hair whilst
absorbing oil and leaving a matte finish and re-
workable hold.

This is a new format. It is a cream that turns

into a powder.

R+Co Badlands Dry Shampoo Paste

(USA)

29 Source: Mintel GNPD

Notable Products of the Past Year

Alternative Packaging - Customisation

Inspired by the art and science of cocktail

mixology.

How it works:
- Select 1 of 4 fragranced base-blends (Lemon
Verbena, Bakhour, Rosemary & Mint or Black
Pepper Citrus)
- Mix with 2 of 8 SuperSerum shots with
different functions
- Shake the bottle like mixing cocktail, creating
a uniquely tailored ShampYou.

Concoctions

30 Source: Styleicons
Notable Products of the Past Year

Sustainability to the forefront

Manufactured with reclaimed water, solar energy and

wind power, the products retail in FSC-certified outer
packs printed with soy ink and made with paper
impregnated with seeds. Biodegradable inner packs
are made with cornstarch, printed with soy ink,
featuring bamboo caps with seeds that grow into a
tree when the bottle is disposed of.

O'Right Recoffee Moisturizing

Shampoo
(UK)

31 Source: Mintel GNPD

Notable Products of the Past Year

Beauty category cross over

Living Proof PHD Perfect Hair Day Night Cap

Overnight Perfector is described as the ultimate
beauty sleep for hair, offering smooth, soft, vibrant
and shiny color, and more manageable hair for up to
five shampoos.

Skincare category crossover with this overnight

product that works while you sleep to wake-up with
beautiful hair.

Living Proof PHD Night Cap

Overnight Perfector
(USA)

32 Source: Mintel GNPD

 Looking to the Future
Haircare meets Mintels beauty trend: Gastronomia
Alternative formats to drive innovation
Augmented Human: Haircare of the future

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Haircare meets Mintels beauty trend: Gastronomia

While lifestyle affects the quality of skin and hair, consumers are still relying on products to improve the
negative effects.
Consumers are becoming more conscious of ingredients and with healthy well-being in mind, we are seeing
more natural and/or organic ingredients coming into play to meet consumers needs.

UK, selected important factors in determining the appearance of hair, February 2015

Base: 1,014 female internet users aged 16+ who have hair
34 Source: Lightspeed GMI/Mintel
Haircare meets Mintels beauty trend: Gastronomia
Colour Excellence Salon Colour
Keratin Complex Repair Professional Hair Detox for
Haircare companies are Therapy Vital Shot Restorative Colour-Treated Hair
encouraging consumers to get Keratin Ampoules
(UK)
involved in customising their (USA)
haircare products at home based
on their individual needs.

Keratin Complex range - Each

concentrated single application
delivers a powerful dose of keratin
to strengthen the hair's cortex,
while binding moisture to the
cuticle, creating a smooth, shiny
appearance.

The hair detox is claimed to deep

cleanse hair shaft and remove
environmentally-generated
oxidised films, metallic and other
surface stains.
described as a unique in-salon one-shot Deep-cleansing detoxifying formula
hair repair treatment and restorative actually improves colour vibrancy and
remedy, designed to rebuild and repair helps your hair colour last longer. Made
the bonds of the hair to deliver the best with plant-derived ingredients.
hair

35 Source: Mintel GNPD

Haircare meets Mintels beauty trend: Gastronomia

Customised scalp care mask

The MKS Crystal Face Mask Machine illustrated

here highlights potential for scalp care masks for
anti-ageing benefits or to cater for consumers
wanting all natural products.

In future, haircare companies could emulate DNA-

based beauty brand Geneu, which offers on-site
DNA testing to enable it to formulate cosmetic
products tailored for each customer. Using the
same technology, there is also a possibility to
design haircare products based on a consumers
DNA profile.

MKS Crystal Mask Machine

36 Source: Mintel
Innovative hair masks present good opportunities

Borrowing formats across

categories such as skincare or
footcare, sleeping mask or hair wrap
mask suggest white space
opportunities to further develop and
grow the category.

37
Alternative formats to drive innovation

New formats and launches will always pique consumer interest. Ensuring products deliver on their promises
will drive product repurchase. Mintels consumer research in China shows that 57% of haircare users would
try new brands if they fit their needs and 42% would try haircare products recommended by friends or
acquaintances.

China, selected factors that influence women to trial new haircare products, April 2015

Base: 2,994 internet users aged 20-49

38
Source: QQ Survey/Mintel
Alternative formats to drive innovation

Some haircare companies are developing transforming textures, which is a huge trend in the beauty
industry, such as crackling foams, powder to cream and cream to powder formulations.
Such textures can help convey product effectiveness and provide a more sensorial experience.
Lola Cosmetics Sudden
Kao Liese Reset Styling
Death Detox Exfoliating Ruby Red Beard Oil
Sheet Fresh Lady
Solid Shampoo (UK)
(Japan)
(Brazil)

Formulated with granulated sugar, claimed
to cleanse and stimulate the micro blood
circulation, offering minerals and
rebalancing; and plant active ingredients,
which are said to provide lasting hydration,
even after washing.
Infused with a minty, rich Spearmint and
Bourbon Vanilla natural aroma. Easily-
absorbed, plant-based formula features a
non-greasy blend of three pure active plant
oils to moisturise skin under beard.
Claimed to quickly and easily restore hair
style and leave the hair manageable just by
wiping with a sheet while removing
unpleasant odour.

39 Source: Mintel GNPD

Augmented Human: Haircare of the future
Krastase Fusio-Dose is said to push back the limits of ultra-personalisation: in the salon/lab, a Fusio-dose
therapist can capture high resolution images (up to 200x magnification) of the customers hair and tailor-make
a Fusio-dose treatment according to the hair needs.

Krastase Fusio-Dose Treatment Combinations

40 Source: Mintel
Augmented Human: Haircare of the future
WAY personalized skin companion
(South Korea)
This form of facial fitbit would easily be transferred to
recommend haircare regimes according to
environmental conditions, for example, or even to track
hair health.
41 Source: Mintel
The more convenient HairMax
LaserBand
Highlighted at the Consumer Electronics Show (CES)
in Las Vegas (January 2016), the HairMax LaserBand
is a device that applies Low level laser therapy (LLLT)
to the scalp to help stimulate dormant hair follicles
using a unique patented technology.
 Analyst's View

42
Analysts View
Sales of shampoo & conditioner and styling products are growing
slowly on a global basis with stagnant or declining growth rates in
developed markets being offset by significant increases in
developing markets such as China and India.
Consumers are looking for new ways to satisfy their beauty needs
Consumers but companies will have to communicate on why adding more steps
to their haircare regimes is worthwhile.
Haircare is set to take a leap into the future and take advantage of a
surge in mobile apps and wearable devices, delivering products and
encouraging consumers to alter their habits to suit their individual
needs, whatever the weather.

One key trend is for companies to target a younger audience with

anti-ageing products that promise to maintain hair volume and
Format fullness. Alternative formats and propositions will continue to excite
consumer interest, whether this is repositioning of existing offerings
or brand new textures and packaging.

Going forward consumers want to be more informed about how

their haircare products are made or even to have a hand in
making their products, focusing on the freshest, natural ingredients,
or boosting product efficacy with tailored additives. Haircare can
Ingredients continue to take inspiration from sectors such as skincare, vitamins
and supplements and even food and drink for further examples of
uniquely customisable products that can translate into highly
desirable haircare products.
43