Haircare Emerges as Fastest-Growing Beauty Segment Amid Economic Pressures and Health Trends
The beauty industry is experiencing a surge in haircare demand, with salon-grade hair treatments and premium products becoming the fastest-growing segment in the US premium beauty market. Economic uncertainty, GLP-1 weight-loss drug side effects, and increased social discussion of hair health on social media are driving the trend. The shift represents a significant opportunity for beauty companies as haircare sales outpace fragrances and other divisions.
Haircare has become the fastest-growing segment of the US premium beauty market, with L'Oréal reporting 12.9 percent sales growth in 2025 across its haircare division, outpacing fragrances and other product lines. The trend is driven by multiple factors: economic uncertainty prompting consumers to seek affordable indulgences (similar to the "Lipstick Index"), increased awareness of hair health issues linked to GLP-1 weight-loss drugs, and younger consumers openly discussing scalp health on social media platforms. The phenomenon has roots in pandemic-era lockdowns and the viral success of premium styling tools like Dyson's Airwrap on TikTok. Haircare has undergone "skinification," with multi-step routines using serums, heat sprays, and oils mirroring skincare regimens. Premium haircare currently represents only 25 percent of the total haircare market compared to 50 percent for skincare, suggesting significant growth potential for upmarket brands like Kérastase and Color Wow.
What's missing
The article does not provide specific data on overall haircare market size or projections, nor does it include perspectives from competing beauty companies or consumer research firms beyond Circana. Additionally, while GLP-1 drugs are mentioned as linked to hair thinning, the article does not cite specific medical studies or prevalence rates of this side effect.
What different sources said
- Sydney Morning HeraldCenter
Inflation is hair-raising for the beauty industry
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