Guest Post by Himesh Khatri
According to a new report by Allied Market Research, the global personal care electrical appliance market is expected to reach $22.8 billion by 2020, registering a compound annual growth rate (CAGR) of 7.1 per cent during the years to 2020. Hair care appliances hold the lion’s share in this market, followed by hair removal appliances, collectively capturing around 75 per cent of the global market throughout the forecast period.
Key Findings
- Among various types of personal care appliances, oral care appliances will grow at the fastest CAGR: 9.7 per cent during 2014 to 2020.
- Within the hair care segment, hair straighteners continues to be the biggest market, but stylers will grow at a fastest CAGR: 8.4 per cent during 2014-2020.
- Powered toothbrushes holds nearly 75 per cent of the oral care market.
- Asia-Pacific will witness the highest CAGR — 10.5 per cent during 2014 to 2020 — though it will still remain the third largest market by 2020.
The demand for personal care electrical appliances is growing at a steady pace. The market is witnessing increased per-year growth of demand for these appliances throughout the globe. However, the adoption is faster in Asia Pacific, including Australia, and the developing world.
With the increasing penetration in the North American and European market, especially for the products such as hair straighteners and dryers, manufacturers are now targeting developing nations such as India and China as the potential markets. Growing population and improving economic conditions are the key reasons fuelling the growth of personal care markets in these regions.
China has attracted a huge number of manufacturers of personal care electrical appliances and has transformed itself into a cost-effective manufacturing hub. Many of the companies have shifted their manufacturing base from the West to the East, and especially to China, due to low labour and other manufacturing expenses. The recent strengthening of Renminbi, however, increases the overall price of the exported products. Expectedly, this scenario will lead to a shift in the manufacturers’ strategy from low-cost offering to product differentiation and innovation. This is also expected to bring an arrangement in production bases and distribution channel, so that the final price of the product can be lowered down.
The personal care electronic appliances market has a limited number of players and the Top 10 companies that dominate the market hold approximately 70 per cent of share. The rest of the market is captured by other small brands and local non-branded products. Procter & Gamble and Conair are the two leading companies in the market. The market for non-branded products is decreasing gradually as people are now more concerned about the quality. This change in consumer preferences has been noticed even in the developing nations. Hair care appliances are expected to lead the global market during rest of the decade, followed by hair removal products.
However, hair removal products are expected to grow at a comparatively faster rate, favoured by expected replacement of manual razors and shavers with electric shavers. Amongst hair care appliances, the hair stylers market would grow at the fastest rate as people are more interested in getting styled hair rather than just straightening. Oral care appliances are gradually gaining prominence in the global market and this expected to be the fastest growing product segment during the forecast period.
North America holds the largest market share and is expected to continue its hold on the global market throughout the forecast period. Europe is the second-largest market in the current scenario, followed by Asia Pacific. Improving economic condition, enhancements in lifestyle and increasing hygiene awareness are the key factors propelling the market, particularly in Asian countries.
Panasonic and Philips are some of the key companies enjoying a strong foothold in the Asia Pacific market. Philips is benefiting from the awareness and brand reputation that it has built in the Asian countries. Remington Products Company, Procter & Gamble, Conair, Philips, Panasonic, Groupe SEB, Colgate Palmolive, Helen of Troy, HoMedics are also expected to do well during the rest of the decade.
Himesh Khatri is the digital marketing engineer for Allied Market Research. Read more about this research into the personal care market.