The US hair care market is expected to grow at a CAGR of 1.06% from 2023 to 2029 per a new report from ResearchAndMarkets.com.

The US hair care market report consists of exclusive data on 30 vendors. The competitive landscape of the US hair care market is shaped by key players, such as L’Oréal, Procter & Gamble, Unilever, Beiersdorf, The Estée Lauder Companies, Amway, Kao Corporation and Henkel, which hold a strong market presence. Analysts say L’Oréal is a dominant player in the US hair care market, known for its extensive product portfolio, which spans luxury to mass-market offerings.

L’Oréal Paris and Redken lead in both professional salon and retail spaces. P&G’s brands, especially Pantene and Head & Shoulders, are household names in the US hair care market. The company holds a significant share in both mass-market and value segments. Amway’s hair care products, particularly under the Satinique brand, cater to the premium segment of the US market.

Recent Vendor Activities

In 2023, L’Oréal debuted the iNOA [iD] color tool, enabling clients to explore over 4,000 shades for a personalized hair color experience. This innovation marks a shift toward highly customizable color solutions that help consumers select the perfect shade based on their unique needs. To stay competitive, hair care brands in the US should consider developing or adopting similar color consultation tools to enhance the consumer experience, driving both in-salon and at-home color product sales.

In 2024, Dove debuted its Scalp + Hair therapy collection marking a major move into the premium hair care segment, focusing on scalp health. Developed with dermatologists, the line promises clinically proven results, which could appeal to consumers looking for both affordability and high-performance solutions. This product line’s emphasis on scalp care aligns with the rising trend of consumers prioritizing scalp health as an essential component of overall hair care. US hair care brands should explore similar dermatologically backed formulations that offer scientifically proven benefits, especially in the growing scalp care segment.

Key Takeaways

The shampoo segment holds the largest market share of over 35%, driven by consumers increasingly seeking shampoos tailored to specific hair needs, such as anti-dandruff, and volumizing.

The Gen Z segment shows the highest growth, with a CAGR of 1.43%. The segmental growth is due to the early adoption of new trends, with a strong inclination toward products that are bold, expressive and unique.

The female segment dominates and holds the largest market share. The segmental growth is because females tend to have highly individualized routines, often using multiple products, such as shampoos, conditioners, masks, oils and styling products.

The offline segment holds the largest market share as consumers continue to value in-store shopping experiences.

The premium segment shows the highest growth, as consumers are willing to invest in high-quality, often salon-inspired formulations that deliver enhanced benefits.

The US hair care market is set to grow due to a rising focus on scalp care and an increase in hair-related issues.

Technological Advancements

The market is rapidly adopting advanced technologies to transform the way consumers experience and engage with hair care. Artificial Intelligence (AI) algorithms play a significant role, in analyzing customer data to create highly personalized recommendations for each individual’s unique hair type, condition and preferences. AI-powered tools can assess factors like hair porosity, scalp condition and moisture levels, leading to more precise product recommendations. Major brands are integrating AI-driven platforms that allow consumers to input personal details or complete assessments, generating customized routines and even developing custom-formulated products.

Scalp analysis tools and imaging technology are becoming essential in salons and retail settings, helping customers understand their hair and scalp needs on a deeper level. These tools can detect issues such as scalp dryness, dandruff and thinning hair, which were traditionally only identified through in-person consultations with hair specialists. The Internet of Things (IoT) also introduces a new dimension to the hair care market with connected grooming devices. Smart hairbrushes, for instance, can track brushing patterns, monitor hair health over time, and sync data to an app for analysis. IoT-enabled hair dryers and stylers adjust heat settings based on hair type and styling needs, ensuring minimal damage.

Rise of Personalized & Customized Hair Care Solutions

In today’s hair care market, personalization has become a core value, as consumers increasingly look for products that reflect their hair characteristics and unique lifestyle needs. Customization in hair care allows consumers to choose products tailored to their hair type, texture and daily habits, offering a more targeted approach to achieving desired hair health and styling outcomes. Many companies are offering digital consultations where users can answer questions about their hair, lifestyle and specific goals, such as enhancing shine, reducing frizz, or addressing color-treated hair.

For example, brands now provide personalized formulations that can be mixed and matched based on hair condition, season and even personal fragrance preference, resulting in a one-of-a-kind hair care solution. Some companies are taking it a step further with subscription models that deliver tailored products directly to the consumer’s doorstep each month, ensuring that customers never run out of their customized products.

This approach, analysts say, not only builds brand loyalty, but appeals to convenience-oriented consumers who appreciate a consistent, hassle-free hair care routine. Additionally, AI-powered algorithms analyze collected data to further refine product recommendations, while virtual consultations connect consumers with hair care experts who can offer real-time advice.

Rising Focus on Scalp Care

Scalp care is gaining recognition as an essential aspect of overall hair health, with US consumers increasingly focusing on the importance of a healthy scalp as the foundation for beautiful hair. Scalp exfoliators, serums and treatments are becoming popular as consumers recognize that issues like itchiness, dryness and excess oil can all stem from poor scalp health, impacting hair growth and quality. Traditional hair care routines often overlooked the scalp, but today, brands are educating consumers on the importance of scalp health, leading to a surge in demand for products specifically formulated to cleanse, nourish and balance the scalp.

Scalp-focused products are formulated with ingredients like tea tree oil, salicylic acid and probiotics, which target concerns like dandruff, inflammation and scalp pH imbalance. In addition to treating scalp-specific issues, many of these products aim to create an optimal environment for hair growth, thus appealing to consumers looking for comprehensive hair care solutions.

As scalp care becomes mainstream, brands are launching product lines dedicated exclusively to scalp health, and salons are increasingly offering scalp treatments as part of their services. This trend highlights the evolution of hair care from a styling-centric approach to a more holistic, root-focused routine, catering to consumers who understand that healthy hair starts at the scalp.

Allergens in Hair Care Products

Analysts say allergens in hair care products are becoming a critical concern for both consumers and brands, especially as awareness grows around the impact of ingredients on skin and hair health. Common allergens such as sulfates, parabens, fragrances and certain preservatives can lead to adverse reactions, including scalp irritation, itching and hair loss.

With the rise in reported cases of allergies and sensitivities, consumers are becoming more discerning about the ingredients in their hair care products, seeking options that are hypoallergenic, fragrance-free or free from common irritants. Brands are now challenged to reformulate their products to reduce allergenic content while maintaining effectiveness.

This shift often requires additional R&D investment and a reevaluation of ingredient sourcing, particularly as “clean” and “natural” claims are increasingly scrutinized. Additionally, there is rising pressure from regulatory bodies and advocacy groups to clearly label allergens and ensure transparency in ingredient listings. For companies, balancing product efficacy with allergen-free formulations is becoming a key focus to retain customer trust and meet the needs of an increasingly ingredient-conscious market.

Check out our coverage of the latest innovations in shampoo and conditioner, here.