The global men’s hair loss prevention and growth products market is projected to register a CAGR of 5.11% during the review period. The growth of the market can be attributed to the increasing prevalence of androgenetic alopecia, with people suffering from the condition witnessing hair loss as early as in their teens or early 20s. Another major factor driving the demand for men’s hair care products is media promotion and celebrity endorsements.
Market strategy analysis
The key players operating in the global men’s hair loss prevention and growth products market include The Procter & Gamble Company (US), L’oreal S.A. (France), Unilever (UK), Kao Corporation (Japan), Shiseido Company, Limited (Japan), Taisho Pharmaceutical Holdings Co., Ltd (Japan), Johnson & Johnson Services, Inc. (US), ROHTO Pharmaceutical Co., Ltd (Japan), Church & Dwight Co., Inc. (US), Forest Essentials (India), artnatural (US), Vital’s International Group (US), Helios Lifestyle Private Limited (India), Natura&Co (Brazil), and Hain Celestial (US). The market comprises tier-1, tier-2, and local players. Tier-1 and tier-2 players have a global reach along with diverse product portfolios. Companies such as The Procter & Gamble Company, L’oreal S.A., Unilever, Kao Corporation, and Shiseido Company, Limited dominate the global market due to brand reputation, product differentiation, financial stability, and a global presence.
The players are focused on lowering their environmental footprint and investing in research and development along with strategic growth initiatives such as acquisitions, product launches, and expansions to strengthen their market position and capture a large customer base.
With the rising disposable incomes of consumers and a focus on appearance by men, the demand for hair loss prevention and growth products is set to increase during the assessment period.
Threat of New Entrants
The global men’s hair loss prevention and growth products market is large and highly competitive. The initial investments required are high and include processing equipment costs. The revenues are also high considering the widespread demand for hair protection products in various forms and packaging across the globe.
The global men’s hair loss prevention and growth products market is fragmented owing to the presence of established players, along with local and regional players. The new players need to invest heavily in creating a brand identity through strategies such as innovative formulations, designs, and quality with the help of advanced technology. Moreover, the initial set up costs are quite high, including the cost of premises and advanced machinery.
Hence, the threat of new entrants in the global men’s hair loss prevention and growth products market is expected to be moderate.
Bargaining Power of Suppliers
The suppliers in the global men’s hair loss prevention and growth products market include manufacturers of foaming and detergent agents, cationic surfactants, conditioning agents, active ingredients, preservatives. Numerous suppliers provide the raw materials required to produce men’s hair loss prevention and growth products, with limited differentiation in quality and price. Thus, manufacturers can easily switch between suppliers as they are not dependent on a single supplier, which reduces their operational risks. The suppliers are not only concentrated in one region but have a cross-regional presence, which further decreases switching costs.
Hence, the bargaining power of suppliers in the global men’s hair loss prevention and growth products market is expected to be low.
Threat of Substitutes
There are no immediate substitutes for men’s hair loss prevention and growth products. The demand for these products is high as they help protect hair follicles from damage caused by pollution and other environmental factors. However, the market is highly fragmented with intense internal competition based on quality, price, efficacy, and convenience. For instance, consumers are substituting shampoos with oils due to convenience, efficacy, and the comparative cost benefit. Additionally, consumers seeking a permanent solution for hair loss may opt for hair transplants. However, increasing incidences of post-surgical complications and side effects along with the extremely high costs of treatment limits the substitution of hair protection products with transplant.
Hence, the threat of substitutes in the global men’s hair loss prevention and growth products market is expected to be low.
Bargaining Power of Buyers
The presence of large industrial players in the global men’s hair loss prevention and growth products market, growing concerns for hair loss, and the need for hair maintenance have attracted a wide consumer base. Due to a large number of existing manufacturers in the market, the switching costs for consumers are low. Consumers are also well-informed about the products and their brand loyalty is low. Moreover, most of the consumers are price sensitive and tend to switch to offerings with a comparatively lower price.
Hence, the bargaining power of buyers in the global men’s hair loss prevention and growth products market is expected to be high.
Intensity of Rivalry
The global men’s hair loss prevention and growth products market is marked by high industry rivalry. Established players are targeting competitors based on quality and price, making the industry competitive and reducing profit margins for all existing firms. Additionally, the players operating in the market compete based on customized offerings and technological advancements.
Players in the global men’s hair loss prevention and growth products market have moderate production capacities and focus on strategic investments. Major manufacturers are inclined toward enhancing their production capacities, especially in emerging economies, owing to the high demand for the products.
Hence, the intensity of rivalry in the global men’s hair loss prevention and growth products market is expected to be high.
