China’s rapid economic development has ushered in a new era of consumption upgrades, with disposable income per capita doubling in the last decade. Consumers are now willing to pay for high-end products as spending has shifted towards enjoyment-based consumption, putting a larger spotlight on the overall personal care industry.
With face masks now a daily necessity in the post-pandemic era, more consumers have shifted their focus and spending from skincare and cosmetics to hair care. China’s haircare industry consists of four categories: shampoo, conditioner and masks, hair color, and styling products. While the first two categories still make up the bulk of sales in the country, emerging consumer trends have led to steady growth—and ample market opportunities—in the hair color segment.
How big is the haircare market in China?
The haircare industry in China is expected to reach a value of 70 billion CNY in total market size by 2025, growing at a CAGR of 5% from 2021 to 2025.
In terms of sales channels, online platforms accounted for 70% of total haircare revenue in 2020. E-commerce platforms such a Taobao and T-mall have also reported greater search-based interest for the hair color category in line with current consumer trends. Younger consumers, especially those from Generation Z, are choosing to explore and show off their personality through bright hair color, while the older set is using black hair dye to look more youthful and confident in the job market.
Although many local hair color brands are active in the domestic market, foreign brands have a much larger and stronger presence. For example, Japanese hair color brands, which are some of the most popular locally, have exceeded 150 million CNY in revenue over the past year on Taobao and T-mall.
This report analyzes the current landscape of the hair color category in the Chinese haircare market—specifically, how the lack of a leading local brand is helping foreign brands enter and dominate the market easily. In line with that, this publication specifically focuses on the growth and success of Japanese brands, and how new products such as organic hair color will further increase their market share.