Continued strong growth is expected in the Spanish salon hair care market says a recent study, however, it has emerged that smaller cosmetic manufacturers must pay more attention to emerging trends and 'economic conditions' in order to forge a place within the competitive category.
The professional hair care segment was valued at over €2.3 billion in 2005 and is set to experience a 2.1 per cent annual growth rate over the next five years, surging ahead of all salon markets the company monitors, including the highly competitive US market.
"Because salon hair care products are a luxury item, this growth could signal the potential for overall economic growth in a country where disposable income and consumer confidence are on the rise" said Deirdre McNulty, associate manager for Kline Europe.
However, the research company indicates that due to heavy competition and the significance of the two leading cosmetic manufacturers, L'Oreal and Procter and Gamble (P&G), there is a need for smaller, less well-known companies to concentrate on different trends in order to earn a place within the competitive industry.
Susan Babinsky, senior vice president and head of Klein's consumer products consulting practice said, "Aside from these two giants, the salon market in Western Europe is highly fragmented, which is a reflection of the complexities in each national market."
Trends that are currently thought to be driving the high growth rate is the increase of more innovative, multi-functional salon products, with consumer need for these formulas mounting.
The study suggests that European consumers are increasing interested in formulas that offer 'added shine, UV protection, and colour extenders and enhancers', which most reputable salon products offer.
Babinsky goes on to suggest that companies hoping to capitalize on this impending growth must first set about understanding 'the trends and economic conditions in the country' as they each have a significant impact on market share and position.
"Companies looking for opportunities in Western Europe need to really understand the nuances of each market in order to plan an appropriate strategy." she stated.
Despite this documented growth, Spain is currently not as developed as other European markets within the cosmetics industry as a whole. Although it has developed rapidly in recent years, only ten years ago the market looked very different, with choice of hair care products still limited compared to other European markets.
Although significant effort has been made in recent years to catch up with the other lucrative European markets, such as France, Spain still has some way to go to reach the level of the other countries.