Market Overview

Propelled by the recovery of economic activities associated with the ease of pandemic restrictions, the market of hair industry, hair transplantation, and hair-care products showed steady growth for FY2022. The size of hair care 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

Population decline, chronic labor shortage, currency fluctuations, and inflation stemming from soaring material prices are huge risks for the future of the hair care market. However, the market also observes multiple factors that may affect the favorably, such as the raise of mandatory 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. In detail, such new segment indicates the female second-generation baby boomers (children of the post-war “first” baby boomers), which is the largest customer segment in terms of population, and young males (in their 20s to 30s) concerned about hair thinning.
Driven by the penetration of social media and governmental initiative for digital transformation, the hair care industry will focus more on user convenience, for instance, sending product/service information opted for each individual, 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