Market Overview

The market size of professional use cosmetics for hair salons and barber shops attained 153,800 million yen for FY2022, 104% of the previous fiscal year, based on the shipment value at manufacturers. Owing to the ease of activity restrictions including so-called 'quasi-emergency coronavirus measures' that requested people to stay home to avoid infections, the number of customers and visit frequency have recovered.

Given that the lifestyle to avoid spread of infections (wearing facial masks,  refraining from going out) continues,  the market will not be the same as pre-pandemic years. Still, the demand for haircare and barbering is increasing (especially coloring), and the sales of salon exclusive products  (offline and online)  are also growing steadily.

Noteworthy Topics

Manufacturers' Strategy to Manage Rising Costs of Raw Materials

Affected by the soaring market prices of ingredients  widely used in haircare cosmetics due to global demand expansion, manufacturers have raised product prices several times. Although they tried to manage material price hike by cutting  other expenses, significan increase in the cost of packaging, energy, logistics, and human resources have neccessitated domestic manufacturers to raisee product prices in the latter half of 2022.  

Quite a few companies have confirmed that they will raise prices in FY2023 and beyond for new brands and products, as well as for renewals.  However, there are also manufacturers that keep price at current level for fear of losing market share.

To mitigate the negative impact of price revisions, manufacturers are bringing forward customer retention ideas for hair salons and barber shops, with a focus on sales activities which may have ripple effect on an increase of  customer LTV and higher salary for salon staffs.

Future Outlook

In responce to the return of pre-pandemic lifestyle, propelled by the government decision to downgrade COVID-19's category to Class 5 Infectious Disease, coupled with the increase in prices of professional use haircare cosmetics anticipated, the hair salon and barber shop cosmetics market is projected to expand in FY2023. However,  consumer spending will diversify across entertainment, hobbies, leisure, and fashion. Amid the shrinking demographics, the market trend the may turn to worse thereafter.

Research Outline