The efficacy cleansing market can't produce the next Perfect Diary.

Background

The global beauty industry is experiencing a transformation as consumers increasingly prioritize the scalp's health alongside their skin’s. The market shift can be observed in both American retail stores like Sephora and Ulta and European brands such as Douglas. According to Circana data, the US high-end hair care retail market saw an 8% year-over-year growth in 2025, significantly outpacing cosmetic (4%), skincare (3%), and perfume (5%) categories.

Key Points

The article highlights that while basic hair products like shampoos and conditioners only saw single-digit growth, repair treatments and styling products—those focused on post-coloring care, protein bonds, scalp health—grew in double digits. Specifically, scalp care products experienced continuous annual double-digit growth with a 20% increase in new product launches.

In China, the online hair care market faced stagnant overall growth of only 0.09%, while premium price segments expanded by 28%. This trend is driven by a phenomenon known as "skincareification," where skincare concepts and functional logic are applied to hair care products, emphasizing scalp health and repair through ingredients like probiotics and peptides.

Significance

Several domestic beauty companies have collectively entered the market with new brands focused on efficacy-based hair care. Notable among these is Jiulong's brand, Henderis, which launched in February 2024, followed by Porelya’s Awaken Seeds, Meitu's Yiyeshi, and Furaila's Soonmu.

However, the efficacy of these new products remains uncertain, much like their predecessors in the skincare market. The primary growth drivers were aesthetic trends rather than long-term scalp health investments. Products such as Poasis’ salt scrub and dry hair spray exemplified this trend, focusing on immediate visual improvements over long-term benefits.

The article notes that international giants like L'Oreal, Unilever, and Procter & Gamble have also entered the market but are cautious about high-end claims, often sticking to traditional shampoo forms. The underlying issue is consumer loyalty; unlike skincare markets, hair care consumers do not show as strong brand loyalty, making it challenging for brands to maintain high growth rates.

Challenges and Opportunities

The growing focus on scalp health introduces both challenges and opportunities. Brands need to prove their efficacy through research and development (R&D), as traditional aesthetics-based strategies may not suffice in the long run due to increasing price transparency driven by ingredient claims. Poasis, for instance, has developed a product with peptides that can penetrate the scalp without affecting post-rinse results.

Another opportunity lies in professional salon channels, which are seen as more premium and trustworthy among consumers. Companies like Off&Relax, backed by major cosmetics conglomerates, benefit from these resources to establish stronger brand loyalty through education on proper hair care routines.

Conclusion

The hair care industry's transition towards efficacy-driven products is a reflection of changing consumer preferences but also poses significant challenges for brands in terms of maintaining growth and establishing long-term customer trust. While the market shows promise, it requires innovative approaches to address these challenges effectively.