In Global Hair Care, Pack Size Really Matters

Dr. Benjamin Punchard, head of global packaging research, Euromonitor International, says there’s one type of packaging consumers never tire of.

Written by Dr. Benjamin Punchard, head of global packaging research, Euromonitor International

ABOUT THE AUTHOR: Dr. Benjamin Punchard is head of global packaging research at Euromonitor International. He leads a global research team, which delivers high-quality research on the packaging industry, shaped to meet the demands of a wide client base.

Euromonitor International has researched key global pack type and size developments in hair care, and has found three general trends: Tubes are performing well, even in saturated markets; “sachet marketing” holds sway in low-income areas of Asia; and HDPE bottles lost the top spot in hair care packaging in 2009.

No Squeeze Yet for Tubes

Consumers do not seem to tire of plastic tubes. Among developed regions, this squeezable pack type pretty much “owns” the vast territories of hair colorants and conditioners, as well as a fair share of styling agents. Even when markets seem to be reaching total saturation, plastic tubes impressively continue their march at an upbeat pace, holding some of the best growth prospects to 2014 including in North America and Western Europe.

When it comes to dispensing a colorant on your hair, the squeezable plastic tube is simply a great match for the job, and the increasing use of small sizes can only keep boosting unit sales. Consumers have responded very well to increased availability of small packs for travel and single use convenience, while brand owners can leverage opportunities for higher profit margins.
The squeezability and texture of its commonly used material, PP (polypropylene), is also currently en vogue. For example L’Oréal’s power brand, Garnier, and its squeezable PP bottles combine an attractive mix of material texture, product usability and affordability, contributing to the brand’s strong and steady growth in most regions over the last few years. L’Oréal has also chosen to utilize this pack type for the Nutrisse product range.

Asia: Affordability Now with Flexible Plastic

At the global level, a continued rise in hygiene levels is boosting usage of shampoos, leading to dynamic and steady unit sales growth for HDPE bottles. Until 2008, the HDPE bottle was the dominant pack solution with sales of 9.5 billion units, being used in most categories of hair care. Flexible plastic was not far behind at 9.1 billion units, owing to its prevalence in shampoo in the form of single serve sachets, a small high unit volume packaging solution specific to the Asia-Pacific region.

Individual shampoo sachets are a common hair care solution for low-income Indonesian, Filipino and Indian consumers, meeting the consumer’s immediate hair care needs at a low retail price. In addition, this pack type enables a deep geographical reach in countries with a high rural population. In Indonesia, brand owners, such as leader Unilever Indonesia Tbk PT and Gloria Origita Cosmetics PT, make the bulk of their unit sales with 5- or 6ml sachets purchased in warungs (small shops or outdoor stalls) in rural and semi urban areas.

2009: A Shake-up Year for Hair Care Packaging

In 2009, “sachet marketing” got the better of the multi-use pack format. Leveraging the fast unit growth enabled by its very small product size and presence in fast growing markets, flexible plastic became the highest unit sales pack type in global hair care, ahead of the HDPE bottle, a pack type more common to the stagnating markets of Western Europe and North America. Shampoo bottles will no doubt continue to be the pack of choice for an increasing number of urban and semi urban consumers who can afford bulky products for the entire household and/or for a usage which is typically spread out over several months. Yet HDPE bottle suppliers will need to keep offering a low cost product for international and local shampoo brand owners to be able to extend their reach to lower income brands.