Hair health is driving category premiumization, opening the door to further innovation opportunities for standout functions and claims.
Prestige hair care sales increased 11% in Q1 2023, according to Circana (formerly IRI/NPD), while mass grew 7%. Though prestige sales grew faster, mass hair care still represents 3/4 of total hair sales volume.
Notably, hair health continued to be a major growth driver in the sector, particularly targeted treatments, heat protectants, leave-in treatments, scalp care and hair thinning solutions. These product types outgrew the general hair category, per Circana.
These treatments have driven the highest year-over-year average price increase across all beauty categories. In particular, this growth was led by an increase in sales of products priced above $30.
Ingredients Drive Differentiation & Premiumization
Ingredients have been front-and-center in this premiumization trend. To illustrate, Mielle was single-handedly responsible for a massive spike in online searches regarding rosemary and hair care due to the virality of the brand’s Rosemary Mint Scalp & Hair Strengthening Oil, now reportedly the top hair oil in the U.S. market (per the brand).