According to new research from Canadean, the focus on hair health and new products are pushing Conditioners to show highest growth in Canadian hair care to 2017.
Hair Conditioners will show the largest growth of the sector with a value and volume compound annual growth rate (CAGR) of 0.8 per cent and 1.4 per cent respectively.
Categories
The Shampoo category continues to have the largest share with value and volume shares of 40.7 and 40.4 per cent respectively in 2012.
Towards 2017 shampoo will grow at a value CAGR of 0.5 per cent and volume CAGR of 0.8 per cent, says Canadean.
The Perms & Relaxers category will display the lowest growth, with value and volume CAGRs of 0.2 and 0.8 per cent respectively for the same period, reflecting an increasing focus on hair health and manageability, as well as the further saturation of the Conditioners category, thanks to emerging products such as conditioning masks and oils.
Saturated
Overall growth in the market has slowed slightly in the last year, compared to in 2011, when the hair care category grew by 3 per cent, which was favourable compared to the CAGR during the review period of 2 per cent.
Having declined in value when the recession took its toll in 2009, the tide began to turn the following year and posted positive growth.
The downturn in growth was driven by the fact that the hair care category is fairly mature and saturated in Canada, and therefore developing product innovations that will allow for price increases is increasingly difficult.
Prospects for manufacturers could lie with hair loss treatments which is constantly driven by the aging of the Canadian population, on top of the aforementioned potential in conditioners.