Future of SkinCare and HairCare Industry Trends 2021-22 | A Case Study

Past

The skincare industry got a significant push during the pandemic period and lockdowns worldwide, more specifically under the “self-care” trend. Gender-neutral, that is.

Many wellness and personal care startups benefited from it.

In April, Bengaluru-based Fit & Glow Health Care Pvt Ltd, which runs the WOW Skin Science brand, raised $50 million from private equity (PE) firm ChrysCapital. Rival brand Mamaearth, owned by Honasa Consumer Pvt Ltd, raised $50 million led by Belgian investment fund Sofina. In March 2021, both brands crossed Rs 500 crore in revenue.

Bare Anatomy has built an algorithm to provide customised hair and skincare products. It has raised $1 million from Sauce, the family office of the Patni Group, and other investors. Since February 2020, the startup has grown 3.5x in terms of revenue.

On the other hand, mCaffeine has grown 3x from pre-Covid-19 times. The company raised Rs 42 crore last September in series B funding, led by Amicus Capital, RPSG Ventures and Telama Investments. Since its launch in 2016, the company states to have served 2.5 million customers and has crossed Rs 100 crore in revenue.

Driven by increasing disposable incomes and growing aspirations, the personal care market in India is projected to touch $20 billion by 2035, according to ASSOCHAM.

Present

With 60% of the world having curly or wavy hair, the population seems to finally drift away from the obsession with straight hair and embrace their natural texture. Products and techniques for curly hair have gained mainstream familiarity through platforms like TikTok and Instagram. Users testing them out are uncovering curls previously disguised as frizz or unruly hair.

For the period 2021-2028, the global haircare market is forecasted to grow from $77.15 billion in 2021 to $112.97 billion in 2028 at a CAGR of 5.6%

The Pandemic has changed a lot for consumers; in terms of choices, awareness or helplessness.

Hair Loss combating products

Whether seasonal, stress-related, or one of the residual effects of COVID-19 infection, people are noticing a lot of hair loss lately.Google search for hair loss shows an uptrend of 8% in the last 12 months, in a report by NDTV. Brands can latch on products for - Hair Thickening, Hair Restoration, hair growth, hair re-growth, baldness/ patchiness - the list in hair loss goes on.

Wigs and Extensions

As accessories or necessities against hair loss, companies have forayed into the false hair domain. They provided no-commitment makeovers that one can do at home; it offers options of playing with styles, textures, colours, and brands.Haircare brands can launch a product line aimed at helping one maintain the wig and the natural hair underneath.