Market Overview

Propelled by the recovery of economic activities associated with the ease of pandemic restrictions, the market of hair restoration, hair transplantation, and haircare products showed steady growth in FY2022. The size of haircare market (as a total of 4 categories) for FY2022 grew to 103.5% of the preceding fiscal year to 516,600 million yen.

Future Outlook

The hair care market faces several risks, including population decline, labor shortages, and rising raw material costs driven by exchange rate fluctuations. However, there are also positive factors at play. For example,  the extension of the retirement age (based on the revision of the Act on Stabilization of Employment of Elderly Persons) and the increase of active seniors, which may increase customer lifetime value (LTV) as the situation leads people to consume/use hair care products and services for longer period of time.

Moreover, in addition to the traditional main customer segment (people in their age of 40s to 70s), acquisition of new customers is expected. The new segment is the female second-generation baby boomers (children of the post-war “first” baby boomers), the largest demography in Japan, and young men in their 20s to 30s that are beginning to experience hair thinning.
Driven by the penetration of social media and governmental initiative for digital transformation, the haircare industry will focus more on user convenience, for instance, sending product/service information relevant for each person, providing online consultation (so as not to bother customers for store visits), refining precision of measurement devices, and developing customizable products based on accumulated personal data.

Research Outline