Monday, May 26, 2008

GROWTH IN THE HAIR COLOR BUSINESS

If you're in the color business, we thought you might be interested in an article from the March issue of Modern Salon - HAIR COLOR BUSINESS: GREAT GROWTH by Cyrus Bulsara. Below are some highlights.

During the 2002-2007 period, when the all hair care products taken together grew only 3.2 percent, hair color product sales grew at 6.3 percent, nearly double the overall market growth rate.

At $644 million in 2007, it is the largest salon hair care product category.

In the salon, hair color is projected to grow at approximately 5.5 percent over the next five years, with most of the business, understandably, on the service side.

In 2007, hair color services at salon level grew by 5.3 percent from $12.54 to $13.20 billion.

In 2007, dollar shipments of permanent hair color in both liquid and creme/gel form together total $343 million and constitute 53 percent of hair color sales.

Cremes and gels constitute 30.1 percent of the category and permanent liquids contribute 23.1 percent.

Semi- and semipermanent products are now rather flat, although at 20.2 percent they form the second largest segment of salon color.

Bleaches and lighteners rank third and constitute a 10.4 percent share of hair color with sales of $67 million.

Color refreshers also show good growth for a segment share of 8.4 percent. These mainly consist of salon retail products for use between hair color services.

FASTEST GROWTH
Service Type

Cutting & Styling: In 2006 25.85; In 2007 26.55; 2.7 % Increase

Hair Coloring: In 2006 12.54; In 2007 13.20; 5.3 % Increase

Perming & Relaxing: In 2006 8.64; In 2007 8.81; 2.0 % Increase

Total of hair care services: In 2006 47.0; In 2007 48.6; 3.3 % Increase

COLOR BY NUMBERS
Segments in 2007

Permanents - creme: 194 Million; 30.1 % of Total

Permanents - liquids: 149 Million; 23.1 % of Total

Semi-Demipermanents: 130 Million; 20.2 % of Total

Bleaches/lighteners: 67 Million; 10.4 % of Total

Color refreshers: 54 Million; 8.4 % of Total

Temporaries: 32 Million; 5.0 % of Total

Toners: 18 Million; 2.8 % of Total

Total: 644 Million; 100.0 $ of Total