Concepts about masculinity and male hygiene have drastically changed in the last few decades. Thanks to changing social ideas as well as celebrity influence, there has been a shift in public opinions about men’s personal care. As a result, men are spending more money on grooming and beard care products. With more global demand from both individual and commercial consumers, there will also be new investment opportunities. But, how can you penetrate the booming beard care market?
Expanding the Market with Beard Care Products
As of 2021, the global market for men’s grooming products was valued at $74.8 billion dollars. However, market analysts expect there to be a huge uptick in global sales that will vastly expand the market. With a projected CAGR of 6.58% by 2030, most experts agree that the market will reach a value closer to $132.73 billion by 2030.
While this brings significant investment opportunities, there are a few things you should know before you change you investing strategy.
Men are becoming more aware of the importance of total body care and being well-groomed, especially in professional settings. Social trends that have also made facial hair more stylish and less shabby are also helping to drive market growth. In addition to the growing personal demands, the presence of more male salons has also created new opportunities.
Introduction of New Products
Another contributing factor has been that companies are taking a broader approach to personal grooming beyond shaving. By introducing new products, other companies have the potential to capture more of the market share. Therefore, many are stimulating market expansion with new beard care products.
For example, many companies have developed new electric shavers and razors that utilize cutting-edge technology. There are also different products for new trimming techniques as well as new beard care products to moisturize, sculpt, and maintain them.
However, monopolies and brand loyalty put significant restraints on market growth. There is little room for competition among the leading brands, so it’s hard for new startups to break into the market. These monopolies also discourage venture capitalists and private equity firms from investing. When companies like Gillett hold 50% of the market share for shaving products, making headway becomes even more challenging.
Furthermore, people also have fierce brand loyalty. It’s hard to attract new customers since they have relied on these products for most of their adult lives. But with growing restrictions on the chemicals and ingredients that are allowed in beard care products, it could create new opportunities within the beard care market.
Considers Before Investing in the Beard Care Market
While there may be new opportunities, it can be difficult to identify how investors can penetrate the booming beard care market. Here are a few things to consider if you are looking to invest in companies that develop, distribute, or sell beard care products.
1. There is greater demand for beard care products with e-commerce.
Although convenience stores still hold the largest market share, younger consumers rely more on e-commerce and online shopping. Not only is it easier for people who are too busy to shop in person, but they can also find more information about what products are available and best suited for their needs.
Online retailers like Nykaa are looking to tap into billion-dollar markets by developing a line for men in India. Based on their current performance, men’s grooming products are one of the fastest-growing platforms for the company and are projected to contribute 10% of the total revenue this year. It won’t be long until other online retailers realize this potential and put more resources and products that are targeted toward regional e-commerce.
2. Market analysts predict the skin care segment of men’s grooming products will expand at a compound annual growth rate (CAGR) of 6% by 2030.
As previously mentioned, there are several segments of the beard care market that show significant growth. However, skin care has shown the highest growth rate. As e-commerce gains a stronger foothold, market analysts predict that the market will yield about a 6.58% CAGR from 2023 to 2031.
3. There are more eco-conscious shoppers looking for products with natural ingredients.
Today’s consumers are becoming more aware of the harmful effects of certain chemicals and ingredients often used in grooming products. However, the increased awareness has led to tighter restrictions and higher production costs.
Therefore, there has been greater demand for organic products with natural ingredients. As industry giants look for alternatives, smaller companies that offer organic products will play a significant role in market demands.
4. While regional market analysis shows varying rates of growth, there will be significant market expansion worldwide.
Current market data shows that Europe has the greatest demand for grooming and beard care products. However, the Asia-Pacific region is the fastest-growing market with a CAGR of 8.1%. But, some analysts predict that North America will have the most growth potential in the coming years. This is partially due to the increase of e-commerce during rapid urbanization, more disposable income, and changing attitudes toward men’s appearance.
As personal care becomes more normalized in every culture, there will continue to be increasing demands as there is more emphasis on men to maintain and enhance their youthful appearance. Since men are becoming more conscious of their image and how it can hinder professional and personal relationships, they will be spending more money on grooming and beard care products.
Companies to Watch
Although there are no guarantees when it comes to investing, market analysts and researchers all agree that this is one area that shows huge growth potential. Based on the extensive reports from Straits Research, these are the 10 companies you should be watching for your market cues.
- Procter & Gamble Company
- Unilever PLC/NV
- Edgewell Personal Care Company
- Beiersdorf AG
- LVMH Mot Hennessy – Louis Vuitton SE
- LO’real SA
- Coty Inc.
- Natura Cosmeticos SA (NATURA)
- PUIG SL
- Koninklijke Philips NV
- Panasonic Corporation
What companies do you think will be the major players within this market in the years ahead? Share your thoughts in the comments below!