THE BACKGROUND
The days of shampoos formulated for three hair-types only - normal, greasy or dry - or exclusively to tackle dandruff are long gone. Consumers no longer want merely to clean their hair, but also to choose from an array of benefits that range from coloured-hair-specific variants to straight-hair or curl-enhancing formulations in both shampoos and conditioners. As manufacturers have extended their offerings, shampoo and conditioner brands have shifted consumer perceptions so that they are now viewed as beauty products and not simply as toiletries.
Shampoo is a classic mature market - penetration sits at near-saturation levels and its value has suffered as discounting and promotions have been rife. The market for shampoo and conditioners was worth 拢545m in 2006, according to Mintel.
Marketers have sought to introduce added benefits in a bid to boost value. Products offering anti-ageing properties, UV protection, anti-breakage and other benefits have been launched by manufacturers seeking greater product differentiation.
As hair has become more heavily and frequently styled among both sexes, consumers have sought out shampoos and conditioners that help to fix their look or purport to improve the condition of their hair as a result of this styling. The trend has been a boon for the sector, although women remain the key and more frequent purchasers of haircare products. The trend for poker-straight hair of all lengths, which took hold when ceramic straighteners became available in the shops in 2003, means that more people are using such hot appliances on their locks. As a result, brands have formulated more products to treat heat-damaged hair.
Brands are very important in this sector. They tend to be focused on either the women's or unisex market, with very few men-only offerings - one rare example being Elvive for Men.
The rise of so-called 'metrosexual man' may have been good news for the toiletries and beauty sectors, but the latest trend for a return to more macho values, dubbed 'menaissance', means multiple grooming products and styling efforts could be ditched. In their place, shower-and-shampoo combination products are more likely to take off. The brands that have launched these so far have tended to come from the bodywash market, such as Radox and Badedas.
However, a growing number of consumers recognise the benefit of separate products with increased functionality, and the fortunes of two-in-one products have waned as a result. As in other sectors, a focus on natural ingredients has benefited brands that trade on this positioning, such as Procter & Gamble's Herbal Essences - the company's fastest-growing brand. P&G is the leading manufacturer, owning brands including Pantene Pro-V and Head & Shoulders. The company has invested in NPD, its most recent variants including Pantene Pro-V Ice Shine for glossy hair and Colour Expressions for coloured hair.
L'Oreal's portfolio includes Elvive, Garnier Fructis and Nutralia. It also has L'Oreal Kids, the only big brand to compete against Johnson & Johnson in the children's market. The Elvive brand has introduced innovations such as a Nutri-Repair Anti-Breakage shampoo and conditioner. While Garnier Fructis has been positioned in the natural camp, it has struggled against products that fit more obviously into this niche.
Unilever has extended skincare brand Dove into this sector as part of its power brands strategy. Dove shampoo and conditioner have been positioned as offering moisturising and volumising benefits. It recently added a Pro-Age line aimed specifically at the mature woman.
Some key consumer patterns are affecting the market. Non-Caucasians, of whom there are a growing number in the UK, tend to spend more on haircare. Also higher levels of people in employment means there is a greater number of people willing to spend more to achieve a professional look and hairstyle.
While older people tend to be less frequent hair-washers, the number of women aged 45-54 is on the increase, so products aimed at them should do well. Also, the proportion of women under 25 is expected to increase from 30% of the female population to 35% by 2012; this group tends to be very aware of their hair's appearance and wear it longer, which may bolster volume sales.
Conversely, while some in the ageing male population will turn to hair-rejuvenating products, others will have less use for haircare, especially if the trend for shaving the head as baldness sets in continues. This could have a significant negative impact on sales.
Future market growth will be affected by continuing price pressures. By 2012 it should have reached a value of 拢561m, according to Mintel; this equates to a decline of 4% from 2007 when inflation is taken into consideration.
ANALYST COMMENT - JAMES FOSTER, CLIENT EXECUTIVE, TNS WORLDPANEL
The UK shampoo market is worth 拢257m, with 34.9m individuals buying its products at least once this year. The conditioner market is smaller in value at 拢196.5m, but, unlike shampoo, is growing.
The rise of the conditioner category has been driven by products designed for coloured hair, which are growing ahead of the market.
Despite the shampoo market's overall decline, coloured-hair variants are bucking the trend, growing by 5%. The number of women having colour treatments has increased over the past decade, with 11m doing so in the past six months. This has increased demand for products that enhance and protect their hair.
Some 675,000 more individuals are buying colour shampoo and 1.4m more are buying colour conditioners this year. As well as a bigger pool of consumers, launches such as Pantene Colour Expressions and John Frieda Luminous Colour Glow have been driving business.
Another key development has been the launch of shampoos for specific hair colours to maintain and enhance the various shades.
Shampoos and conditioners in this segment attract an upmarket female consumer compared with the average buyer. However, a greater social mix among purchasers entering the market suggests a broadening of appeal. This could be due to mass brands such as Pantene and Sunsilk moving into this area and gaining supermarket listings.
The challenge for coloured-hair shampoo and conditioner brands will be to develop loyalty among new shoppers. The colour-specific ranges are priced at a premium and manufacturers will need to monitor whether shoppers believe their performance is worth the extra cost.
SHAMPOO AND CONDITIONER BRANDS BY SALES AND MARKET SHARE
2007* 2005 05-07
pounds m % pounds m % % chng
1 Procter & Gamble 208 38.0 180 34.0 16.1
Pantene Pro-V 74 14.0 70 13.0 5.7
Head & Shoulders 50 9.0 44 8.0 13.6
Herbal Essences 50 9.0 37 7.0 35.1
Aussie 22 4.0 17 3.0 29.4
Wash & Go 6 1.0 6 1.0 0.0
2 L'Oreal 66 12.0 60 11.0 6.6
Elvive 52 10.0 43 8.0 20.9
Garnier Fructis 9 2.0 14 3.0 -35.7
L'Oreal Kids 4 1.0 4 1.0 0.0
3 Alberto Culver 58 11.0 72 13.0 -14.8
TRESemme 33 6.0 36 7.0 -8.3
VO5 8 1.0 10 2.0 -20.0
Alberto Balsam 5 1.0 8 1.0 -37.5
4 Unilever 54 10.0 63 12.0 -12.7
Dove 21 4.0 24 4.0 -12.5
Sunsilk 20 4.0 26 5.0 -23.1
Timotei 14 3.0 13 2.0 7.7
5 Kao Brands 50 9.2 45 8.4 11.1
John Frieda 50 9.2 45 8.4 11.1
6 Johnson & Johnson 19 3.0 23 4.0 -14.3
Neutrogena 10 2.0 14 3.0 -28.6
Johnson's Baby 8 1.0 7 1.0 14.3
Other brands 60 11.0 62 12.0 -8.5
Own-label 30 6.0 32 6.0 -6.3
Total 545 100.0 537 100.0 1.5
Source: Mintel
*est
NOTE: manufacturer totals include key brands and others not listed, and
may not add up due to rounding
SHAMPOO AND CONDITIONER MANUFACTURERS BY ADSPEND (pounds)
Jun 06-May 07 Jun 05-May 06
1 Procter & Gamble 31,835,630 25,576,982
2 L'Oreal Paris 10,678,621 9,318,714
3 Unilever 10,405,305 7,797,385
4 John Frieda 5,529,604 6,376,113
5 Alberto Culver 4,296,182 5,873,774
6 Garnier 2,329,053 3,929,293
7 Schwarzkopf 943,479 0
8 PZ Cussons 903,773 2568
7 Boots 600,804 126,201
8 L'Oreal Professional 577,818 320,370
Source: Nielsen Media Research