Ethnic Hair Care Market Trends & Formulating Solutions

Creating value, growing together

Ethnic Hair Care market Trends & Formulation Solutions


Value Proposition

Glenn, an Azelis Americas company, provides comprehensive service through the delivery of specialty chemical solutions for the formulation of Personal Care and Home Care & Industrial Cleaning products. Our super-regional footprint accompanied by our technical competence and our optimized marketing engine exemplify our value-added standards to both our supplier partners and customers.


1. Market Data 2. Consumer Data 3. Ethnic Hair Types and Routines 4. Product Examples


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Growing Economic Opportunity Justifies Product Development

• Greater Black population rise vs. Whites: the population of Black consumers in the US is expected to rise 5% between 2015 and 2020 vs. 2.8% for White.

• Black spending power: projected to increase to $1.4 trillion by 2020, which would make their spending power in terms of GDP as large as Mexico (only $320 million in 1990).

• Experimenting with different hair/fashion styles: important to 37% of Black women (vs. 14% of men) – boding well for hair styling products.

• Usage: styling products are used by 51% of Black consumers (May 2014) rising to 67% of women.

Sources: Mintel and Atlanta black star

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• In the Black haircare category, styling products saw the greatest gain of 26.8% between 2013 and 2015 (est.) – in contrast to stagnant hair styling sales in the overall US haircare market.

• There was an 18.6% fall for relaxer sales, an 18.3% increase for shampoo, a 9.8% increase for conditioner and a 1.6% increase for home hair colour.

• The fashion for more natural afro hairstyles (vs. straight / relaxed) is arguably driving sales of styling products as a natural look for curly/afro hair often requires consumers to add a few more products to their daily routine.

Targeting Black consumers: US styling product sales rise by biggest share

Source: Mintel Reports, Black Consumers and Haircare - US - August 2015

Madam C.J. Walker Beauty Culture Frizz Fighting Coconut & Moringa Oils

26.8%

Styling products increased

18.6%

Relaxers sales fell

Africa’s Best

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• Consistent with their high engagement in the haircare category, Black haircare users report above-average interest in many new products such as scalp treatments (69%), lightweight hair oils (63%) and hair fragrance (56%).

Targeting Black consumers: interest in scalp treatments, light oils, fragrance

Source: Mintel Reports, Black Consumers and Haircare - US - August 2015; Base: 1,893 internet users aged 18+ who use haircare products

Scalp treatments Lightweight hair oils Hair fragrances

AllBlack

53%

69%

49%

63%

47%56%

Interest in select new products, by race, January 2015

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Hair Treatments Lead in Ethnic Hair Product Launches in NA (2013-July 2016)

Hair Treat-ments, 47.17%

Hair Styling; 33.96%

Shampoo; 11.32%

Conditioner; 7.55%

Moisturising / Hydrating

Botanical/Herbal

Leave-In

Brightening / Il-luminating

Ethical - An-imal

Organic

Friendly Package

Damaged HairTime/Speed

Ethnic Hair Treatment Claims

Strong influence of natural and moisturizing claims in ethnic hair treatments

Sources: Mintel

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US, new product launches of shampoos, conditioners and styling products, % by ingredient-related claims, Jan 2013-July 2016

Natural and moisturizing claims in shampoos, conditioners and styling products are highly relevant in the ethnic hair care market

Sources: Mintel

86% 38%

Moisturizing/hydrating

93% 57%

Botanical/herbal

39% 7%

Mineral Oil/Pertroleum free

68% 32%

Paraben free

25% 14%

No Additives/preservatives

46% 28%

Sulphate/Sulfate free

Ethnic hair care products All hair care products

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Nourishing Needs are Top Priority

42% of Black consumers have tried or would be interested in trying anti-aging hair care products

30% of Black consumers have used or are interested in hair care products that treat baldness and thinning

Consumer facts:

Hair treatments (rinse-off and leave-on)

Conditioning shampoos

Cleansing conditioners

Less damaging relaxing systems

Generating market opportunity for:

Driving the need for:

Dry scalp prevention

Increased moisturization and elasticity

39% of consumers think that cleansing conditioners are good for occasional use, 34% that they work as well as traditional hair-washing products, 33% that they are less damaging than traditional shampoo and 32% that they make hairstyles last longer.

Source: Mintel

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Conditioners Evolve, Regular Shampoos Slip

Source: Mintel

Regular shampoo usage dips slightly85% of respondents in the US indicate using shampoo (January 2016) – a small fall on the 89% in 2015 – arguably linked to consumers washing hair less frequently.

Overall usage of regular conditioner stands at a steady 63% of US consumers (January 2016) – rising to 76% of women and falling to 48% of men.

17% of US respondents indicated using cleansing conditioners which provide a gentler wash; men are as likely as women to report usage (16% vs. 18%); and men who use hair care products are also more likely than women to say that they occasionally replace their shampoo with a conditioner (18% vs. 12%).

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Trend Toward Natural Hair Styles

67% of Black women and 77% of Black consumers overall wore a natural hairstyle in 2013

Over half (51%) of Black consumers report using styling products compared to one third (34%) of consumers overall

Consumer facts:Generating market opportunity for:

Intensive conditioners

styling products

Dry Shampoos

Driving the need for:

Curl control – predominant

concern

Prevention of hair breakage caused by simple, daily

grooming

Frizz control

Source: Mintel

12% of consumers used dry shampoos in 2016 (a fifth among Hispanics) compared to 9% in 2015.

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Opportunities in Multi-Cultural Beauty

• Cultural shift in beauty ideals• Embracing cultural identity• Large, mixed race population in NA• Opportunity to extend product development beyond ethnicity to

cater to common needs among broader consumer groups• This opens up the opportunity for “specialty” brands to move to

mass channels with products effective for curly, wavy and generally unruly hair

Ethnic hair

Curly hair

Hispanic

Caucasian

Pacific islander

Multicultural market

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Top Ethnic Hair Care Companies by Product Launches in NA (2014 – Aug 2016)

Source: Mintel

Carol's Daughter Product

Sundial Brands

SoftSheen-Carson

Curls

Advanced Beauty

Miss Jessie's

Mizani

Beautyge

Black Onyx World

Andre Walker Hair

0 5 10 15 20 25

Sundial Brands• Madam C.J. Walker (Styling

and Treatments)

SoftSheen-Carson• SoftSheen-Carson Dark &

Lovely (Treatment)

Curls• Curls (Styling)

Brand & Top Products

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Exciting Companies for Inspiration

A collection of handmade hair and skin products

• Whether providing natural or handmade products, these three brands provide consumers with innovated and intriguing products to satisfy an entire hair care regimen

17 Source: naturallycurly.com, Evonik Research

Curl PatternShows the amount of wave or curl in the hair

Well-defined, springy, copious curls from bouncy ringlets to tight corkscrews

Needs

PorosityAbility to absorb and hold moisture by how tightly the cuticle scales adhere to the surface of the hair shaft

High: The curlier the hair, the more areas of discontinuity in the cuticle layer. Coily has fewer cuticle layers, less protection from the damage inflicted by combing, brushing, curling, blow-drying and straightening

Frizz reduction, deep moisturizing, conditioning during the washing process to help restore the hair to a more manageable porosity level

Tight curls, kinky, or very tightly curled

DensityHow closely individual strands of hair are packed together on the scalp. Determines hair volume

Higher for Coily hair. Lots of strands densely packed together. Hair is voluminous

Curly with medium density: Enhance the hair’s texture and play up volume Coily with high density: Hold the curls and reduce volume

Sebum Sebum migration to the hair shaft is very low and not evenly distributed due to the large diameter and tight curvature along the hair fibers

Remove excess oils without stripping hair of its natural oils and sebum. Nurture the dry scalp

Growth Slow growing, at less than 0.9 cm a month Nourishing

Curly CoilyManaging Hair

Textures

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Formulate products that meet consumers’ natural hair care regimens!Maintain and beautify natural curls

Sulfate-FreeWith moisturizing properties

1. ShampooEvery 5-7 days

Use of conditioner instead of shampoo to clean the hair. Opportunity for Cleansing Conditioners!

2. Co-wash for dry hair

Replenishing masks, oils, creams, scalp care balms

3. Deep ConditioningTwice a month

Detanglers, sprays, creams

4. Leave-in ConditionerAfter every wash

Sprays for curl definition/shine, moisturizing gels, hair polish and freeze control serums, heat protectants, curl friendly foams, moisturizing balms

5. Styling

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“Naturalista” Growing, but Straighter Styles Remain in DemandFormulate products to restore and nourish treated hair

Lightweight naturally-derived oils, repair tonics

1. Day Care

Lightweight moisturizer

2. Night Care

Pre-shampoo treatment, shampoo or cleansing conditioner and deep conditioning treatment

3. Weekly

Serum to protect the hair from heatSheen-moisture and/or styling sprays with natural oils and/or siliconesScalp massage treatmentTreatment/Styling hybrid products

4. Styling & Nutritional Support

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The Hair Relaxer MechanismThe cortex (the inner layer responsible for the strength of hair) is usually shown as one unit but actually consists of several fibres (known as fibrils) which are neatly and tightly packed together.

Relaxing process:Swelling of the cortex which happens when the relaxer separates the bonds within the proteins of the fibrils Supercontraction where the broken bonds essentially realign themselves into a configuration that allows the hair to be straight instead of curlyIssues:

Weakened cortex due to expansion and bond breakingCuticle damage by lifting, increase in porosity

Source: naturalista.com

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A Friendlier Approach to Relaxers

1. Straightening crème: with coconut, avocado and olive oils2. Two part activator system: Once combined, the pH rises to effectively to straighten the

hair. The natural oils in the relaxer creme are alive and present at the point of activation, allowing the coconut, avocado & olive oils to penetrate the cuticle of the hair shaft

3. Sulfate-Free Shampoo4. Plant-derived conditioning treatment and oil

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Hair Maintenance: Dry Shampoo

Marketing Claims:

A translucent dry shampoo designed to blend with all hair colors without leaving any powdery residue.

Safe for keratin-treated hair, the cruelty-free product is suitable for all hair textures and is free from sulphates, parabens and gluten.

Ingredients: isobutane, alcohol denat., dimethylimidazolidinone rice starch, Solanum tuberosum (potato) starch, butane, aluminum starch octenylsuccinate, volcanic ash, Macadamia ternifolia (macadamia) seed oil, Argania spinosa (argan) kernel oil, Hedychium coronarium (ginger) root extract, Mangifera indica (mango) fruit extract, Actinidia chinensis (kiwi) fruit extract, Passiflora incarnata (passion flower) extract, Aloe barbadensis (aloe vera) leaf extract, panthenol, tocopheryl acetate, silica, benzoic acid, sorbic acid, water (aqua), ethylhexyl methoxycinnamate, fragrance (parfum), chlorphenesin, phenoxyethanol, eugenol, hexyl cinnamal, linalool, benzyl salicylate

Macadamia Professional

$25

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Hair Maintenance: Dry Conditioners

Marketing Claims:

Weightlessly condition tresses with an antioxidant-packed dry formulation that will never dampen a style. The product is suitable for all hair types, including colour, keratin and Brazillian treated hair, has not been tested on animals, and is free from animal derived ingredients, parabens, sulfates, phthalates, sodium chloride and artificial colours.

Ingredients: butane, SD alcohol 40-B, propane, diisopropyl adipate, PEG-8 dimethicone, panthenol, butylene glycol, quaternium-91, cetrimonium methosulfate, cetearyl alcohol, fragrance, Hippophae rhamnoides (sea buckthorn) extract, water

Amika Obliphica

$10

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Hair Styling: Enhancing the natural look

Marketing Claims:Designed to stop frizz, add shine, shape and seal in curls for leave-in conditioning with no build up.Dries soft and adds shine with no flaking.It is free from parabens, animal testing or harmful ingredients for humans or the environment.Taliah Waajid

$7.91

Ingredients: water (aqua), glycerine, polyquaternium-10, PEG-14M, polyquaternium-37, polysorbate 20, Achillea millefolium (yarrow) extract, Ziziphus joazeiro (jual) bark extract, Citrus medica limonum (lemon) fruit extract, caprylyl glycol, phenoxyethanol, fragrance (parfum)

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Hair Styling: Edge Control• Although this category is still niche, it posts growing opportunities for product

development

Creme of Nature Argan OilThe product is said to provide perfect hold without hardening, an exotic shine and make hair stronger thanks to its non-greasy, non-sticky, non-flaking formula infused with Moroccan argan oil, rich in fatty acids and essential nutrients.

Ingredients: aqua (water), ceteareth 25, propylene glycol, PEG-7 glyceryl cocoate, glycerin, oleth-20, PEG-25 hydrogenated castor oil, polysorbate 60, Prunus amygdalus dulcis (sweet almond) oil, Argania spinosa kernel oil, Rosmarinus officinalis (rosemary) leaf oil, hydrolyzed wheat protein PG-propyl silanetriol, keratin amino acids, parfum (fragrance), hydroxyisohexyl 3-cyclohexene carboxaldehyde, phenoxyethanol, methylparaben, ethylparaben, CI 19140 (yellow 5), CI 17200 (red 33)

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Hair Treatment: Enhancing the natural look

Madam C.J. Walker Beauty Culture Frizz

Fighting $26

Marketing Claims:Said to block humidity for a frizz-free finish on wavy and curly styles.Described as a nourishing and moisturizing oil to protect curls and featuring a fast-absorbing, lightweight multi-tasking formula to help maintain curl definition and healthy shine.Designed to be used as a leave-in or pre-shampoo treatment.

Ingredients:capric/caprylic triglycerides (coconut oil derived), fragrance (essential oil blend)

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Co-Washing = Conditioner-Only-Washing!

Marketing Claims:Low-lather formula cleanses like a shampoo. For dry, damaged, curly, coarse, or colored hair.

Ingredients:Water, Stearyl Alcohol, Cetyl Alcohol, Stearamidopropyl Dimethylamine, Glutamic Acid, Fragrance, Dimethicone, Phenoxyethanol, Benzyl Alcohol, Zinc Pyrithione, Citric Acid, Sodium Chloride, Panthenol, Panthenyl Ethyl Ether, Prunus Amygdalus Dulcis (Sweet Almond) Oil, Methylchloroisothiazolinone, Methylisothiazolinone

Pantene$6.99 – Mass Market

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Transitioning Products: Back to natural

• Products to transition from chemically relaxed hair to natural hair managing and styling these two very different textures

– Moisturize new natural growth– Replenish relaxed hair– Prevent frizz– Fortify and hydrate dull, lifeless curls

Leave-in treatment and styling hybrid for texture management.

water, glycerin, Ricinus communis (castor) seed oil, acetylated lanolin, Crambe abyssinica seed oil, hydrogenated castor oil, Triticum vulgare (wheat) germ oil, glyceryl stearate, PEG-100 stearate, fragrance, ceteareth-20, PEG-8 dilaurate, stearyl alcohol, DMDM hydantoin, carbomer, aminomethyl propanol, panthenol, Butyrospermum parkii (shea) butter, Theobroma cacao (cocoa) seed butter, disodium EDTA, hydrolyzed keratin, butane, iodopropynyl butylcarbamate, sodium chloride, phenoxyethanol, potassium sorbate

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“To Build Unwavering Customer Loyalty”

We accomplish through:

Developing long-term customer and supplier relationships by providing innovative solutions to meet the formulating and production needs of our customers.

Employing a leading team of technical sales people, supported by an exceptional service organization.

Demonstrating the highest level of integrity in every transaction to the mutual benefit of our customers, suppliers and employees.

Mission Statement


glenncorp.com300 Jefferson Blvd.Warwick, RI 02888(p): (888) 453 6267

http://glenncorp.com/

Ethnic Hair Care Market Trends & Formulating Solutions

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