Shampoos and conditioners remain highly competitive, driven by intensive promotional activity at point of sale.
The total market was valued at £460m in 2000, up 19% since 1996. However, recent trends suggest a slowdown in real terms, due to price-cutting and promotional strategies by major retailers.
Manufacturers have maintained consumer interest in the category through the creation of new niches as a result of innovative brand extensions, rather than major new brand launches.
In terms of distribution, the grocery multiples have maintained their stranglehold of the shampoo market, with a 56% value share. However, they have struggled to increase value sales due to the keen discounting conducted by the major multiples, which regularly run 2-for-1 and 3-for-2 price promotions.
Haircare is an important category within non-food, and a number of key retailers have made efforts to develop more premium business by stocking a wider range of brands, including designer ranges.
Opportunities for growth are limited, given the high penetration level, especially for shampoo which was recorded at 97% for women and 95% for men. The percentages were lower for conditioners 73% and 34% and may present some scope for growth.
Manufacturers are promoting regime shampoo and conditioner usage, and segmenting their product ranges so consumers can choose different variants for different usage occasions.
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