Professional Hair Oil Market Size (2024 – 2030)

The global professional hair oil market was valued at USD 1.2 billion in 2023 and is projected to reach a market size of USD 1.67 billion by the end of 2030. Over the forecast period of 2024–2030, the market is projected to grow at a CAGR of 4.87%.

Professional hair oils are carefully formulated to keep hair healthy and beautiful. These oils are natural and synthetic ingredients designed to address hair concerns, from moisturizing to softening and styling. Argan oil is prized for its rich nutritional properties that provide moisture to hair and protect against environmental stress. Coconut oil penetrates deeply to strengthen and repair damaged hair, reduce protein loss, and increase strength. Jojoba oil is similar to the oils in the scalp and regulates sebum production while nourishing the hair and scalp. Olive oil is rich in vitamins and antioxidants that control frizz and add shine. Known for its ability to stimulate blood circulation and promote hair growth, castor oil can regenerate hair follicles for thicker, fuller strands. Whether used as a treatment, as a night mask, or mixed with shampoo or conditioner, hair oil meets many needs and repairs hair from root to tip. Selecting the appropriate oil depends on individual hair type, texture, and desired outcomes, ensuring a personalized approach to hair care excellence.

Key Market Insights:

The worldwide professional hair oils market is being shaped by the growing consumer desire for natural and organic formulations, technological developments, and the incorporation of customized hair treatments. These factors are propelling innovation and satisfying the changing demands of consumers. The market's largest and fastest-growing ingredient category is coconut oil, which has several advantages for hair health, such as conditioning, strengthening, and moisturizing qualities. The highest revenue share in sales channels is accounted for by salons and spas; online platforms, which provide convenience and accessibility to customers globally, are growing at the quickest rate. With the largest and fastest-growing market, Asia-Pacific is driven by factors such as changing beauty standards, rising disposable income, and population expansion.

Professional Hair Oil Market Drivers:

Rising emphasis on hair health and aesthetics is fueling market growth.

There is a growing global interest in hair health and aesthetics as a result of changing beauty standards and lifestyles. Consumers are looking for products that not only address hair problems but also improve the overall appearance and texture of their hair. Professional hair oils have become an important part of consumers' hair care routines with their care, repair, and shine-adding properties.

The surge in salon and spa services is accelerating the growth rate.

The rise of salon and spa services worldwide has contributed significantly to the growth of the professional hair oil industry. Salons and spas often recommend and offer hair oils as part of treatments, from deep treatments to scalp massages. This trend is expanding consumer access to hair care and aesthetic products and increasing sales in the market.

Innovative formulations targeting specific hair issues act as a catalyst for the market.

Businesses are constantly innovating and creating products designed for specific hair conditions, such as dryness, damage, frizz, and hair loss. These new formulas often include natural ingredients and proven research to provide solutions to meet different consumer needs. Whether it's argan oil to moisturize, coconut oil to repair, or castor oil to stimulate growth, these brands resonate with consumers looking for the right solution for their hair.

Professional Hair Oil Market Restraints and Challenges:

The high cost of professional hair oils restrains market growth.

A major limitation is the high cost of professional-grade hair oil compared to mass-market products. When consumers value quality and performance, the high price of a particular hair oil may deter price-sensitive consumers from purchasing the product. This high-price constraint restricts market entry, especially in regions where income is low or where consumers prioritize affordability over product quality.

Competition from home remedies and DIY treatments proves to be a challenge in the sector.

Many consumers are using home remedies and do-it-yourself (DIY) treatments that use natural oils and kitchen ingredients as alternatives to professional hair oils. While products offer solutions with specific benefits and scientific backing, the popularity of DIY treatments poses a challenge by offering alternatives that are considered good value. Educating customers about the benefits of professional standards and dispelling misconceptions about DIY repairs is key to meeting this challenge.

Environmental and sustainability concerns hinder market growth.

Increasing awareness of environmental sustainability and ethical behavior is becoming an issue for the hair oil industry. Consumers are increasingly aware of the environmental impact of ingredients, production, and packaging. Businesses should prioritize sustainable practices, environmentally friendly packaging, and transparent labels to meet consumer needs and expectations. Failure to resolve these issues can lead to reputational damage and loss of customer trust, affecting the long-term growth of the business.

Professional Hair Oil Market Opportunities:

The global Professional hair oil industry has many opportunities for growth and innovation. Opportunity to tap into emerging markets, particularly in emerging markets where rising disposable income and changing aesthetic standards are leading to increased demand for quality hair care products. By expanding communications and investing in regional markets, companies can capitalize on untapped markets and build stability in existing regions.

Additionally, the increase in customization in the beauty industry provides hair oil brands with the opportunity to offer solutions that suit customers' needs. Using technologies such as artificial intelligence and behavioral analytics, companies can identify customer preferences and produce personalized solutions. This personal approach not only increases customer satisfaction but also creates brand loyalty, ultimately ensuring long-term growth and success in the global professional hair oil market.

PROFESSIONAL HAIR OIL MARKET REPORT COVERAGE:

Professional Hair Oil Market Segmentation - by Ingredients

• Argan Oil

• Coconut Oil

• Olive Oil

• Avocado Oil

• Others

Coconut oil is the largest and fastest-growing type. Because coconut oil has so many positive effects on hair health, it has become more and more popular in the hair care market. It contains a lot of medium-chain fatty acids, especially lauric acid, which helps strengthen hair strands by penetrating the hair shaft and nourishing the scalp. Additionally, well-known for its conditioning and moisturizing properties, coconut oil may improve the overall structure of the hair while also reducing frizz and enhancing shine. Furthermore, coconut oil is adaptable and may be utilized in a range of hair care products, such as conditioners, masks, oils, and style treatments. Both consumers and hair care experts have widely adopted it due to its natural nature and perceived efficacy.

Professional Hair Oil Market Segmentation - by Sales Channel

• Salons and Spas

• Specialty Beauty Retailers

• Online Platforms

• Direct Sales

• Other Retail Channels

In 2023, based on the sales channel, the salons and spas segment accounted for the largest revenue share. Professional hair oils are often sold through hair salons and spas, where professionals can recommend and use products to suit the client's needs. This channel provides personal interaction and expertise, improves the customer experience, and helps increase sales during salon visits. Online platforms have shown the fastest growth in recent years, offering convenience, accessibility, and a wide range of hair care oils to consumers around the world. Additionally, specialty beauty stores and direct sellers also play an important role in hair oil distribution based on different consumer preferences and business practices.

Professional Hair Oil Market Segmentation: Regional Analysis

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

Asia-Pacific is the largest and fastest-growing market. The Asia-Pacific region, which includes countries such as China, Japan, India, and South Korea, has huge growth opportunities for the hair oil industry. Factors such as population growth, increased disposable income, increased urbanization, and changing beauty standards have accelerated growth in this region. Additionally, the popularity of salon treatments and the growth of social media and beauty influencers are increasing people's need for hair care products. In North America, including the United States, Canada, and Mexico, the hair oil industry is characterized by high-quality products, customer experience, and premiumization. Factors such as the revolution in beauty, the development of hair health, and the existence of the manufacturing and spa industries have accelerated the growth of the professional hair oil market in this region. Europe is a mature market for the hair industry, and countries such as the UK, France, Germany, and Italy are increasing demand. The region is known for its diverse customer base, stringent regulatory standards, and strong distribution network through department stores, specialty stores, and online platforms. South America has emerged as a lucrative market for hair oil, led by countries such as Brazil, Argentina, Colombia, and Chile. Factors such as the growing middle class, increased adoption of salon services, and a culture of personal care have fueled the growth of the industry in this region. There is a growing demand for professional hair oils in the Middle East and Africa, driven by factors such as youth, urbanization, and the growth of the beauty industry. Countries such as the United Arab Emirates, Saudi Arabia, and South Africa are key markets in the region due to consumers' preferences for high-quality hair products and the need for beauty products.

COVID-19 Impact Analysis on the Global Professional Hair Oil Market:

The COVID-19 pandemic has had a major impact on the global professional hair oil industry, affecting many parts of the industry. Demand for professional hair oils has decreased due to widespread quarantines, salon closures, and consumers spending less on non-essential products. Many customers have turned to at-home hair care, resulting in a temporary reduction in doctor visits and hair care treatments. Additionally, disruptions in the supply chain, including production restrictions and transportation restrictions, have affected the availability of hair oil on the market. However, as lockdown measures ease and salons reopen, demand is slowly returning, driven by consumer demand for salon services and innovative hair care products. In addition, the growth of the e-commerce line has given life to the business; Consumers have been able to purchase hair oil online, albeit slowly. Overall, while the COVID-19 pandemic has put pressure on the world's professional hair industry, the industry has demonstrated resilience and change during this crisis.

Latest Trends/ Developments:

Some new trends and developments in the global hair oil industry are shaping the business landscape. One notable trend is the increasing demand for natural and organic formulations, driven by consumer preferences for clean and sustainable beauty products. Hair oils containing ingredients such as argan oil, coconut oil, and jojoba oil have become popular due to their nourishing properties and environmental friendliness.

There is also interest in many hair oils that combine the benefits of conditioner, scalp treatment, and scalp care. This new model is suitable for customers looking for comfort and good hair care.

Furthermore, technological developments such as the integration of artificial intelligence and data analysis have led to the emergence of personalized hair treatments. Companies use this technology to identify individual hair needs and create products tailored to customer needs.

Additionally, the rise of social media and influencer marketing is influencing consumer decisions; influencers and celebrities recommend hair services, increasing brand awareness and sales. Together, these changes and innovations are shaping the global professional hair oil industry, driving innovation and meeting consumer needs.

Key Players:

1. L'Oréal S.A. 

2. Unilever PLC

3. Henkel 

4. Amway (Alticor)   

5. Kao Corporation 

6. Avon Products, Inc. (Natura &Co) 

7. Oriflame Cosmetics AG

8. Moroccanoil Inc.   

9. Macadamia Natural Oil, Inc. 

10. Dabur

• In February 2022, L'Oreal Paris launched the Extraordinary Oil Smooth Products. The range consists of 4 products: a shampoo, conditioner, hair serum, and steam mask.

• In February 2022, Dabur India Ltd. announced the launch of "Virgin Coconut Oil', further strengthening its presence in the coconut oil market.