Australia Hair Care Market Analysis by Mordor Intelligence
The Australian Hair Care Market, valued at USD 1.56 billion in 2025, is expected to reach USD 1.89 billion by 2030, growing at a CAGR of 3.86% during the forecast period. The market growth stems from increased consumer focus on personal grooming, higher demand for premium and environmentally friendly products, and enhanced product formulations for specific hair concerns. The market expansion is supported by technological progress in hair care formulations, particularly in developing targeted solutions for issues such as dandruff, hair thinning, color protection, and damage repair. Consumer response has strengthened due to improved product customization and efficacy. Demographic shifts, including an aging population, have increased the demand for anti-hair-fall and hair coloring products, while younger consumers drive growth in styling and premium segments. These factors have contributed to an expanded product range in Australia's hair care market, with ongoing consumer interest in health, wellness, and clean beauty establishing new industry standards.
Key Report Takeaways
- By product type, conditioner led with 36.44% of the Australian Hair Care market share in 2024, while hair styling products are projected to post the fastest 4.36% CAGR through 2030.
- By category, conventional products held 84.26% share of the Australian Hair Care market size in 2024, yet organic products are set to climb at a 4.81% CAGR to 2030.
- By price range, mass-market items accounted for 74.13% of the Australian Hair Care market share in 2024; the luxury and premium tier is forecast to advance at a 4.72% CAGR.
- By distribution channel, supermarkets and hypermarkets captured 42.19% share of the Australian Hair Care market size in 2024, whereas online retail is expected to grow at a 5.03% CAGR through 2030.
Australia Hair Care Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Increasing popularity of scalp health and holistic hair care | +0.8% | National, with stronger adoption in urban centers | Medium term (2-4 years) |
| Ageing population spurring anti-hair-fall and colour demand | +1.2% | National, concentrated in major metropolitan areas | Long term (≥ 4 years) |
| Innovation in hair color solutions | +0.6% | National, with premium segment focus | Short term (≤ 2 years) |
| Sustainability and eco-friendly packaging | +0.3% | National, driven by environmentally conscious consumers | Long term (≥ 4 years) |
| Growing demand for personalized hair care solutions | +0.4% | Urban Australia, expanding to regional markets | Medium term (2-4 years) |
| Rising male grooming segment | +0.5% | National, with higher penetration in metropolitan areas | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Increasing popularity of scalp health and holistic hair care
The increasing popularity of scalp health and holistic hair care stands as a powerful driving force behind the robust expansion of the Australian Hair Care Market. Consumers understand that scalp health directly impacts hair quality and overall wellness, influencing their product choices toward items that address scalp detoxification, dandruff control, sensitivity, and follicular health. Environmental challenges in urban Australia, including pollution, hard water, and stress-related factors, contribute to scalp issues and increase demand for specialized treatments. Australian consumers prefer hair care products that are sulfate-free, pH-balanced, hypoallergenic, and dermatologically tested, particularly those containing botanical ingredients, vitamins, and probiotics that support scalp microbiome balance and reduce irritation. For instance, in August 2023, Vichy Laboratories launched their Dercos anti-dandruff shampoo line in Australia, featuring a scientifically validated formula that addresses dandruff causes, demonstrating the market's evolution toward evidence-based scalp care solutions.
Ageing population spurring anti-hair-fall and colour demand
The demographic transition toward an ageing population in Australia serves as a primary catalyst for hair care market expansion, specifically in anti-hair-fall and hair color product segments. For instance, in Australia, individuals aged 65 years and above represent 16.8% of the total population in 2024, according to the Australian Institute of Health and Welfare, with this demographic segment expanding due to enhanced life expectancy rates [1]Source: Australian Institute of Health and Welfare, "Older Australians", aihw.gov.au. This population segment demonstrates increased concern regarding hair health maintenance, hair loss prevention, and grey hair management. The market exhibits elevated demand for specialized hair care formulations, encompassing anti-hair-fall shampoos, conditioners, serums, and hair colorants that deliver both aesthetic and functional benefits. Manufacturing entities have implemented product development strategies incorporating vitamins, peptides, and botanical extracts to enhance follicular strength, reduce hair loss incidence, and ensure color retention in mature hair. The expansion of this demographic segment has facilitated market growth and product innovation, as these consumers demonstrate a propensity to invest in premium, specialized hair care solutions.
Innovation in Hair Color Solutions
Innovation in hair color formulations serves as a significant growth driver in the Australian Hair Care Market. Consumer preferences increasingly gravitate toward hair color products that deliver optimal performance, enhanced safety protocols, and personalization options aligned with specific hair health requirements. For instance, in March 2025, Kevin Murphy introduced Kevin Murphy + Code, a comprehensive vegan product line comprising 91 distinct shades, offering complete grey coverage and maximum color retention. This product introduction addresses the market demand for both aesthetic enhancement and hair health maintenance. The market demonstrates responsiveness to heightened consumer awareness regarding the health implications of conventional hair dyes and the increasing preference for cruelty-free, environmentally sustainable formulations. The incorporation of AI-powered shade-matching technology, multi-dimensional color systems, and ammonia-free formulations enhances consumer confidence in product efficacy. These advancements reflect the increasing market demand for both residential and professional salon applications that integrate convenience with professional-grade performance standards.
Sustainability and Eco-Friendly Packaging
The Australian Hair Care Market demonstrates significant growth propelled by the increasing consumer preference for environmentally responsible products, with particular emphasis on sustainable and eco-friendly packaging solutions. Australian consumers exhibit a marked inclination toward hair care brands implementing plastic waste reduction strategies, utilizing recyclable materials, and incorporating advanced packaging technologies that minimize environmental impact. This consumer behavior stems from heightened environmental consciousness regarding climate change and ecological preservation, predominantly among millennial and Generation Z demographics who emphasize corporate transparency and ethical business practices. In April 2024, Wella Company exemplified this market direction through the introduction of its reformulated Welloxon Perfect salon color developer. The product's new packaging infrastructure incorporates advanced multi-layer molding technology, facilitating the substitution of virgin plastic with 70% post-consumer recycled materials while maintaining optimal product integrity and safety standards.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Safety concerns over synthetic chemicals | -0.4% | National, with higher impact in health-conscious demographics | Short term (≤ 2 years) |
| Stringent safety and regulatory compliance | -0.3% | National, affecting all market participants | Long term (≥ 4 years) |
| Intense competition between local and international brands | -0.2% | National, with higher intensity in premium segments | Medium term (2-4 years) |
| Presence of counterfeit hair care products may hamper the growth | -0.1% | National, with higher risk in online channels | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Safety concerns over synthetic chemicals
The incorporation of synthetic chemicals in hair care formulations constitutes a substantial impediment to the Australian hair care market's growth trajectory. Heightened consumer awareness regarding the potential adverse effects of synthetic ingredients has precipitated a marked shift toward natural formulations. This transformation in consumer preferences significantly impacts conventional hair care products, necessitating manufacturers to develop alternative solutions with enhanced safety profiles. Consumer apprehensions regarding synthetic chemicals' implications for scalp health, hair integrity, and environmental sustainability directly influence purchasing patterns. The market demonstrates an increasing preference for products incorporating botanical ingredients, organic components, and dermatological validation, as opposed to those containing synthetic additives. This market evolution impedes the expansion of traditional synthetic-based products and necessitates manufacturers to develop transparent, natural, and ethically sourced alternatives to maintain their competitive position in the Australian market.
Stringent safety and regulatory compliance
Australia's stringent regulatory framework for hair care products creates significant market entry barriers. The Australian Industrial Chemicals Introduction Scheme (AICIS) oversees the importation and manufacture of chemicals used in cosmetics and personal care products [2]Source: The Australian Industrial Chemicals Introduction Scheme (AICIS), "Personal care, skincare, make-up, and other cosmetic products", industrialchemicals.gov.au. All shampoos, conditioners, hair colorants, and styling products must comply with strict regulations, including business registration with AICIS and detailed ingredient assessments. Every cosmetic ingredient must be listed and meet concentration and usage restrictions, with new or unlisted ingredients requiring pre-market evaluation. Product labels must follow specific standards for ingredient disclosure, batch numbers, and contact information. Additional oversight from the Therapeutic Goods Administration (TGA) applies to products making therapeutic claims regarding advertising and labeling accuracy. These comprehensive requirements increase the time, cost, and complexity of product development and market entry, particularly affecting smaller companies and new entrants.
Segment Analysis
By Product Type: Conditioner Dominance Drives Market Stability
The conditioner segment maintains a dominant position with 36.44% market share in the Australian hair care market as of 2024. This market position demonstrates a fundamental shift in Australian consumer behavior toward prioritizing hair health and damage prevention over aesthetic considerations. The segment's substantial presence is attributed to heightened consumer awareness regarding the importance of hair hydration, structural repair, and strength maintenance, particularly in response to Australia's environmental conditions, including elevated UV exposure and fluctuating humidity levels. Conditioners function as essential components in hair care routines, providing both manageability benefits and protective properties against damage from regular cleansing procedures, thermal styling applications, and chemical processing treatments.
Hair styling products demonstrate superior market performance as the fastest-growing category in the Australian hair care market, achieving a compound annual growth rate of 4.36% through 2030. This market expansion is primarily driven by evolving consumer preferences emphasizing individual expression and efficient styling solutions. The category experiences significant development through product innovations, including advanced formulations in lightweight gels, specialized sprays, volumizing mousses, texturizing waxes, and treatment serums engineered for diverse hair characteristics. The segment's growth is further supported by social media influence, individualized beauty regimens, and increased participation in the male grooming segment.
Note: Segment shares of all individual segments available upon report purchase
By Category: Conventional Products Face Organic Challenge
Conventional hair care products continue to dominate the Australian market, commanding 84.26% share in 2024. This position reflects consumer trust in these products, which have established efficacy profiles and widespread availability. The conventional segment's leadership stems from its broad range of formulations that address diverse hair care needs through synthetic and scientifically backed ingredients. Australian consumers value the consistent performance, affordability, and accessibility these products provide, making them the preferred choice across mass-market retail outlets, including supermarkets, pharmacies, and specialty stores. Conventional products benefit from extensive brand legacy, reinforcing user confidence with formulations optimized over decades for cleansing, conditioning, protection, and styling.
Organic hair care products in Australia are experiencing growth momentum, with a CAGR of 4.81% through 2030. This surge is driven by consumer preference toward clean, natural, and eco-friendly formulations that align with wellness and sustainability trends. Australian consumers increasingly select products free from harsh chemicals, favoring ingredients that are gentle on both hair and the environment. For instance, in July 2024, a leading organic and vegan Australian brand launched a new range of 100% natural shampoo and conditioner. The collection features a Bamboo and Rosemary Shampoo and a Yuzu and Rice Protein Conditioner, combining nature-derived ingredients for nourishing and strengthening properties. This launch demonstrates the market demand for organic alternatives and product development focused on transparency, ethical sourcing, and efficacy in hair care.
By Price Range: Mass Market Stability Versus Premium Growth
Mass market hair care products dominate the Australian Hair Care Market with a 74.13% market share in 2024. This dominance stems from the affordability and widespread availability of mass-market products, making them accessible to consumers across the country. These products balance quality and cost-effectiveness, meeting everyday hair care needs while being available in supermarkets, convenience stores, pharmacies, and online retailers. Mass market offerings include diverse product variants for different hair types and concerns, ensuring broad consumer appeal. The continued preference for mass market products reflects consumer focus on reliable performance at reasonable prices in a competitive market.
Luxury and premium hair care products in Australia demonstrate robust growth, with a projected CAGR of 4.72% through 2030. This growth indicates increasing consumer preference for high-quality, effective hair care solutions that deliver enhanced performance. Premium brands respond to this demand through advanced formulations and refined packaging that appeal to consumers investing in comprehensive beauty routines. For instance, in August 2024, Kérastase expanded its presence by launching its hair care collections at Mecca, a major Australian beauty retailer. This expansion demonstrates the increasing demand for premium products and the importance of strategic retail partnerships in the luxury segment.
Note: Segment shares of all individual segments available upon report purchase
By Distribution Channel: Digital Transformation Accelerates
Supermarkets and hypermarkets dominate the Australian hair Care Market distribution channels, holding a 42.19% share in 2024. These retail formats maintain their market leadership through widespread accessibility across urban and regional areas. As one-stop shopping destinations, they enable consumers to purchase hair care products alongside other daily necessities. Their market position strengthens through extensive product displays, competitive pricing, and regular promotional activities that generate high customer traffic. These channels effectively serve diverse consumer segments by offering both mass-market and premium hair care products. Their robust distribution networks and supply chain systems ensure consistent product availability.
Online retail stores are experiencing significant expansion, with a projected CAGR of 5.03% through 2030. This growth stems from consumers increasingly favoring the convenience and product variety of online shopping platforms. E-commerce channels provide access to diverse hair care products, including niche, premium, and international brands. Digital marketing strategies and social media platforms enhance product visibility and consumer engagement. According to the Australian Bureau of Statistics, online retail sales reached AUD 4.41 billion in December 2024, indicating substantial e-commerce adoption [3]Source: Australian Bureau of Statistics, "Retail Trade, Australia", abs.gov.au. This trend reflects consumers' increasing preference for digital platforms in researching and purchasing hair care products.
Geography Analysis
Australia's hair care market exhibits concentrated characteristics with distinct regional variations that influence consumption patterns and brand preferences. The market benefits from a high-income population base, supporting demand for premium and specialized hair care products. Australian consumers show strong awareness of international beauty trends due to digital media exposure, which has increased the adoption of advanced formulations and innovative products.
Major metropolitan areas, including Sydney, Melbourne, Brisbane, and Perth, generate the most premium product sales. Urban populations demonstrate a higher interest in luxury and eco-friendly hair care solutions. Regional markets show a preference for established mass-market brands through supermarket and pharmacy channels. This urban-rural distinction reflects variations in consumer lifestyle, product accessibility, and purchasing power, with regional consumers focusing on practicality and affordability while urban consumers seek exclusive products.
The concentration of Australia's population in coastal urban centers enables efficient distribution for hair care brands through optimized logistics and inventory management. However, this creates challenges in servicing remote and rural consumers, where distribution networks remain limited and product availability varies. Companies are expanding e-commerce and digital sales channels to address geographic gaps and serve Australia's dispersed population. The balance between urban premium demand and regional market access remains essential for market growth in Australia.
Competitive Landscape
The Australian Hair Care Market shows moderate fragmentation, characterized by competition between international conglomerates and local brands across various consumer segments. The market's dominant players include The Procter & Gamble Company, Unilever PLC, Henkel AG & Co. KGaA, L'Oréal SA, and Kao Corporation. These companies maintain substantial market shares through product innovation, mergers and acquisitions, and strategic marketing. The market's competitive nature is enhanced by brands addressing diverse consumer needs across mass market, premium, and niche segments.
Technology adoption creates competitive advantages in the Australian hair care market. Companies implement personalized product recommendations, direct-to-consumer e-commerce platforms, and social media marketing to connect with customers outside traditional retail channels. This digital shift allows companies to build stronger consumer relationships, increase brand loyalty, and adapt to beauty trends. Mobile hair diagnostics, subscription services, and influencer marketing enable companies to provide personalized experiences and expand their market reach.
The market presents growth opportunities in male grooming, scalp health treatments, and sustainable packaging. New market entrants target demand for Australian-made products, natural ingredients, and ethical manufacturing, effectively competing with established international brands. These companies use authenticity and sustainability as competitive differentiators, establishing niche market positions and driving industry trends toward conscious consumerism and environmental responsibility. The market's competitive landscape combines established global companies with broad product portfolios and nimble local brands focused on innovation and ethical practices.
Australia Hair Care Industry Leaders
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The Procter & Gamble Company
-
Unilever PLC
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Henkel AG & Co. KGaA
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L’Oréal SA
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Kao Corporation
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- March 2025: Garnier unveiled its latest offering, the Damage Eraser Keratin range. This scientifically crafted three-step regimen, comprising the Damage Eraser Keratin Shampoo, Conditioner, and Filler Treatment, targets hair repair at the cortex level.
- March 2025: Davines has made its debut in Australia with The Present Time, a new demi-permanent colour line, showcasing it live at Sydney’s Museum of Contemporary Art. The formulation boasts 99% biodegradable and 93% naturally derived ingredients.
- October 2024: Australian beauty brand People Haircare partnered with Oxfam and Bullfrog to collaboratively and innovatively develop the advanced formulation for their product, ONLY SHAMPOO.
- September 2024: MUVO has introduced its Balayage shampoo, specifically designed to cater to the unique needs of both blonde and brunette hair, ensuring optimal results for diverse coloring requirements.
Australia Hair Care Market Report Scope
Hair care products help control the properties and behavior of the hair so that it can be maintained in a controlled and desirable manner. The proper use of hair care products will help boost the quality of hair by providing proper nourishment and restoration of moisture.
The Australian hair care market is segmented by type and distribution channel. On the basis of type, the market is segmented into shampoo, conditioner, hair colorants, and other types. On the basis of the distribution channel, the market is segmented into supermarkets/hypermarkets, convenience stores, specialty stores, online stores, and other distribution channels.
The market sizing has been done in value terms in USD for all the abovementioned segments.
| Shampoo |
| Conditioner |
| Hair Colorants |
| Hair Styling Products |
| Other Hair Care Products |
| Organic |
| Conventional |
| Mass |
| Luxury/Premium |
| Supermarkets/Hypermarkets |
| Convenience/Grocery Stores |
| Health and Wellness Stores |
| Online Retail Stores |
| Other Distribution Channels |
| By Product Type | Shampoo |
| Conditioner | |
| Hair Colorants | |
| Hair Styling Products | |
| Other Hair Care Products | |
| By Category | Organic |
| Conventional | |
| By Price Range | Mass |
| Luxury/Premium | |
| By Distribution Channel | Supermarkets/Hypermarkets |
| Convenience/Grocery Stores | |
| Health and Wellness Stores | |
| Online Retail Stores | |
| Other Distribution Channels |
Key Questions Answered in the Report
How big is the Australia Hair Care market in 2025?
The market stands at USD 1.56 billion in 2025 and is on track to hit USD 1.89 billion by 2030.
What is the expected CAGR for hair-care sales in Australia through 2030?
Australia Hair Care Market revenue is forecast to register a 3.86% CAGR over 2025-2030.
Which product type has the largest share of sales?
Conditioners lead the category at 36.44% of 2024 value, underscoring their central role in daily routines.
Which sales channel is growing fastest?
Online retail is projected to rise at a 5.03% CAGR, outpacing all physical formats as shoppers migrate online.
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