Hair Care Packaging Landscape in Asia Pacific

Regina Maiseviciute, Industry Analyst, Euromonitor International

Hair care products are considered commodities and thus the impact of the economic slowdown on this category has been  minimal.  In 2011, consumers globally spent almost US$74 billion on hair care products. In volume terms, shampoo is the biggest category, accounting for 2.2 billion litres in 2011, followed by conditioners and colorants.

A very wide variety of packaging formats can be found in this category. The HDPE bottle is one of the most mature packaging formats in hair care, accounting for 9.6 billion units in retail globally in 2011. However, the strong success of flexible plastic in small sizes in Asia Pacific moved this packaging type into the leading position in 2011, with almost 15 billion units sold.

Growth of larger pack sizes

Asia Pacific recorded the strongest growth in hair care packaging in 2011, posting a 7% increase in unit volumes. This was mainly driven by small-sized (5-25ml) flexible plastic packs used for shampoos and conditioners, which grew by 8% and 10%, respectively, in retail volume terms in 2011.

In India, smaller sizes of flexible plastic in shampoos were marketed mainly in rural areas, providing an affordable option for consumers with lower disposable incomes, while bigger HDPE bottles were targeted at urban consumers due to their stronger purchasing power and a more developed retail infrastructure.

The further development of retail and the move of beauty and personal care products into supermarkets and hypermarkets as well as the internet channel influenced both demand and the popularity of larger pack sizes in hair care in China. In shampoo, 501-750ml HDPE bottles were the most dynamic in 2011, growing by 5% in retail volume terms.

Rising disposable incomes in the Philippines resulted in more beauty and personal care products being introduced in larger  pack  sizes.  This trend was particularly visible in hair care. In 2011, the leading player Unilever launched Sunsilk in a 700ml HDPE bottle with a lotion pump, with a 200ml flexible plastic pouch as a refill option. However, flexible packaging still remained the most widely used packaging type in beauty and personal care products in the Philippines over the review period. In 2011, flexible packaging accounted for a 90% share of overall retail unit volumes thanks to single-serve sachets in hair care.

Taiwan appears to be the opposite of India and the Philippines in this respect. The growing offer of larger pack sizes as well as discounts and multipacks in hair care was the result of intense competition between retailers. It is worth noting that multipacks are more popular than bulk packs as the Taiwanese see the storage and usage of bulk shampoo as inconvenient.

Pouches eco-friendly refills The issue of sustainability has also entered the beauty and personal care arena in various regions across the world. The natural trend continues to be very important for key  players and is encouraging mainstream brands to launch products in this category.

Consumers in China and Japan have observed the launch of eco-friendly and user-friendly packaging
in hair care over the last few years. In many cases in China these were plastic pouches, used as refills for regular brands. However, it is believed that plastic pouches are unlikely to pose a significant challenge to rigid plastic as consumers will only purchase a refill pack if they recognize the product.

In Japan, Shiseido is intending to use more eco- and user-friendly packaging materials, which it will
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