Market Overview

The market size of hair salon and barber shop cosmetics for FY2023 increased to 156,800 million yen, 102.0% of the previous fiscal year, based on the shipment value at manufacturers. The market continued the prosperity because of relaxed behavior restrictions in the previous fiscal year, which brought about recovery in the number of salon customers, causing growing sales of products and services from such customers. At salons, the price revisions for each service menu were underway, effective to bring up the industry-wide prices. In addition, the pattern to purchase salon-specific cosmetics products at the salon or via ecommerce channels (offline/online) have established.
On the other hand, as the government lifted the ban on events or traveling overseas, consumer spending on hobbies and entertainment increased. This slowed down the spending on beauty, which once was on the rise due to higher consciousness on beauty and being neat, decelerating the market growth.

Noteworthy Topics

In addition to Manufacturer Price Revisions, Efforts to Deal with 2024 Logistics Issues Observed at Dealers

The impact of soaring raw material prices due to rapidly expanded demand worldwide fueled material suppliers to revise prices several times to the present. Domestic hair-salon cosmetics manufacturers had kept on making efforts to absorb such rises in-house, but they started raising product prices since the latter half of 2022.

In association with commencement of the workstyle reform application from April 2024, concerns over overtime cap for truck drivers are looming (the 2024 Logistics issue). Current logistics capacity to destinations is not likely to be maintained after April due to significantly declined transportation capacity per day.
Rise of service prices at logistics businesses can affect the transportation costs for providing merchandise to salons and salon customers, which may lead to further revisions to merchandise prices.
Dealers that distribute business-use haircare cosmetics are therefore, addressing to enhance logistics.

Future Outlook

Although the business-use haircare cosmetics market has restored to the pre-COVID level, it cannot be said as complete market recovery, as those consumer behaviors such as wearing masks accordingly and teleworking that is reducing outing opportunities continue.
Price revisions to professional-use cosmetics at each manufacturer for FY2023 went on at major and medium-size companies. However, because the uptrend in energy, product ingredients, logistics, and labor costs have not ended, further price rise for products may occur.
In around FY2025 when price rise becomes overall over, structural factors, such as a decreasing number of beauty-conscious people owing to waning population, are projected to affect the market size of hair salon and barber shop cosmetics for a downtrend.

Research Outline