7 Keys To The Hair Wellness Boom

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Hair care is one of beauty’s all-star categories, powered by a growing array of health- and inclusion-focused innovations. To illustrate: U.S. prestige hair product sales grew 22% in 2022, driven by masks and targeted treatments, per NPD.

Category sales online and in brick-and-mortar are almost evenly split, per the firm. In addition, the sector has actually reduced the number of units sold on promotion by two points as of Q3.

According to its latest financials, hair care is Ulta’s second largest category, driven (no surprise) by hair health, damage repair and targeted treatments. Key performing brands include Ouai and Briogeo in prestige, and masstige brands such as Eva NYC, Batiste and Kristin Ess, as well as professional brands such as Pureology, Redken and Kenra.

With so much healthy growth, investments in the hair wellness sector are on the rise. Recently, textured hair health brand Mielle Organics, which specifically centers Black women, was acquired by P&G.?

Elsewhere, Arey, a direct-to-consumer hair care brand targeting gray hair, blew past its $2 million fundraising target, generating a $4.15 million seed round led by the Female Founders Fund and Greycroft. Arey addresses gray hair with a supplement and hair serum, as well as a duo of shampoo and conditioner that helps prevent an increase in graying hair. In total, the system can reportedly preserve and perhaps restore hair pigment.

Around the same time, Dae Hair raised an $8 million series A funding round led by Verity Venture Partners (co-founded by Tina Bou-Saba and Matt Levin), an early growth firm which previously invested in Noto Botanics, with participation from Digital Brand Architects (DBA), Whitney Port, Aimee Song and Christine Andrew, and with continued participation of existing investor Willow Growth Partners. Dae’s hair care assortment includes shampoos and conditioners, along with multitasking styling and treatment products.

Bou-Saba notes, "Hair care has been a high growth sector in beauty and a major focus for us as investors. Clean, prestige hair care is growing especially rapidly, driven by consumer interest in ingredients and the ‘skinification’ of hair. Of course, beauty is a crowded space, and we look for brands with the potential to break through and scale. We think that Dae is incredibly wellpositioned to be a major winner!"

Jenny Son, president of Dae, adds, "This past year we have seen a movement of the consumer’s interest towards clean hair care–and looking for that clean hair care option within the prestige space specifically. The category continues to grow year over year and we don’t see that slowing any time soon. Just like what we have seen with skin care, the consumer has become more savvy and is looking for the best in terms of performance and quality."

Son concludes, "We are seeing a similar trend to skin care now show up in the hair space, where the consumer is becoming more savvy and looking for the best ingredients and results based on hair type and concern. She wants her hair care products to be both safe and effective and not have to compromise. The consumer is thinking about the scalp like they think about their skin care routines. At Dae, every product has been intentionally crafted with clean ingredients that are safe and effective and all formulations are loaded with nourishing ingredients derived from desert botanicals that have worked for centuries to revive hair to its healthiest and shiniest."

With the hair care boom fully underway,?Global Cosmetic Industry?took some time to break down the key drivers and growth opportunities for brand innovation.

Read or download "7 Keys To The Hair Wellness Boom", addressing:

• Scalp care
• Hair density & loss
• Exposomal defense
• Hydration: hyaluronic acid for the hair
• The elevation & destigmatization of dandruff care
• Waterless innovation
• Personalized textured hair care