Market Trends of Israel Hair Care Industry
Growing Popularity of Private Label and Indigenous Brands
- The demand for hair care products in Israel is rising mainly due to an increase in the young and aspirational population who invest in grooming, appearance, and maintaining hair health. Another key trend in the market includes hair care products that comply with the halal law, which is also becoming a global trend.
- Moreover, the consumers in Israel prefer personalized products and services, further catalyzing the private-label and indigenous manufacturers to cater to this gap in the hair care industry and secure a position for themselves in the highly fragmented and intensely competitive industry.
- Private-label small and medium enterprises (SMEs) are significant contributors to key product innovations and market growth. Private label is now extending from staple categories, such as baby products, bath, shower, or oral care, to more premium categories, such as hair masks, hair color, and keratin-infused ranges. These factors have attracted multi-generational consumer groups in search of products offering a good balance between affordability and quality.
- The Israeli hair care market is thriving, and there has also been an increase in the import of hair care products, including shampoo and other such products. According to the UN Comtrade data, the import value of hair preparations and shampoo amounted to approximately USD 32.72 million in 2022.
- Furthermore, due to the popularity of private labels and indigenous brands, the products have also gained recognition in the international market. Some of Israel's popular hair care brands include Moroccanoil, La Beaute, My Way, and Pro Berry. According to the UN Comtrade data, the export value of hair preparations and shampoo rose from approximately USD 128 million in 2020 to USD 166.8 million in 2021.
- Therefore, the growing inclination toward private-label and indigenous beauty brands is expected to contribute significantly to the overall market growth during the forecast period.
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Rising Scope For Online Retail Segment
- Due to the rise in internet penetration across the region and the popularity of online retail channels, many players have been offering their products via online retail stores. For instance, International Trade Association 2022, Israel represents an excellent opportunity for online sellers of consumer goods, with internet penetration of 97% in the country. The increased exposure to the internet led to the direction of a wide variety of hair care products and promotions for such products, propelling the market growth.
- The rising fashion trends among the young population, expanding distribution channels, and high purchasing power are the primary factors driving the hair styling products market in the region. The online retail segment for retail sales in Israel's hair care market is expected to grow fastest during the forecast period.
- \The online retail platform provides consumers with more comprehensive options and brands of hair care products, which is the key growth factor of the segment. Retailers increasingly use augmented reality (AR) technologies to help online customers and improve their e-commerce experience.
- With the improving logistics capabilities, faster delivery, and hassle-free returns, single and multi-brand retailers are making customers feel more at ease with online purchases, driving the beauty and personal care market through e-commerce. Moreover, several personal care online stores and e-commerce websites offer lucrative discounts for price-sensitive Israeli consumers, likely to drive sales via online retailers.
- Some popular e-commerce retailers selling hair care products in Israel are Wow Cosmetics, H&B, Cosmo Store, Israeli Products, Care To Beauty, Judaica web Store, and others. Notably, there has been a consistent rise in the number of internet users in Israel, which will likely improve online retail sales of hair care products in the future.
