Professional Consultants & Resources, a leading strategic consulting company and top professional beauty industry data source, recently released its in-depth, new 2012 Professional Salon Haircolor Study. The study showed that sales of professional salon color products were up by 3.6 percent and professional hair color services were up by 3.6 percent.
"Salon hair color services have become extremely vital to the growth and very survival of salons and the salon industry at large!" says Cyrus Bulsara, founder of Professional Consultants & Resources. "We face considerable headwinds in the next few quarters based on the poor results of the last two. Major retrenchments and management changes are underway within the market leaders."
Hair color remains the largest, fast growing, major salon product category at $756 million. As the economy recovers, haircolor grows well in areas with good economy. Hair color is projected to grow at a good pace over the next 5 years.
Growth is projected from increased salon visits, for gray coverage, fashion color, new haircolor, and new styles driving growth for demi permanents, permanents, vibrants/vivids, pastels, lighteners and refreshers.
"Hair color services grew by 3.5%, as salon client visits increased and newer, fresher types of hair color services grew and tweens and teens become users," says Bulsara.
Some of the major findings detailed in the 2012 Professional Salon Haircolor Study are:
· Hair color grows strongly in a low GDP growth economy - it is projected to grow to low-single digits by 2017.
· Salon distribution realignments have abated and most salon hair color companies are growing product lines.
· Hair color has become a “vital service” and brings in all other salon services, plus sales for color-care and after-care lines.
· Salon hair color services grow 3.5%, as chair/suite rentals aggressively gain share from mid-tier and mall-based salon chains.
· Demi-permanent formulas again grow at over twice the rate of permanents, indicating new hair coloring dynamics and trends.
· Men’s hair color services for gray coverage/blending sharply increase at upscale men’s barbershops/salons and are covered in-depth in the survey.
· Crèmes/gels outsell liquid hair color in the US for a major usage shift. Most liquids now have crème versions.
· L'Oréal remains the overall category leader with Matrix, Redken, L'Oréal Technique and Professionnel. P&G pursues closely and continues its rapid full-service growth, with its Clairol, Wella and Sebastian divisions; Wella is now the leading hair color company. Goldwell, Sally/ION and Schwarzkopf follow, with another strong growth by Sally’s ION and own-label brands.