We recently compiled a list of the 10 best hair care stocks to buy right now. In this article, we’ll take a look at how Procter & Gamble Company (NYSE:PG) stands compared to other hair care stocks.
According to Fortune Business Insights, the global hair care industry is estimated to be worth $99.52 billion in 2023. From 2024 to 2032, the market is projected to grow from $106.91 billion to $213.47 billion at a CAGR of 10.4%. In 2023, Europe led the Hair Care industry with a market share of 36.43%.
The increasing acceptance of longer hairstyles by men and the growing popularity of hair color have increased the demand for hair care products. According to a 2020 Garnier survey, 42% of 2,000 Americans have discovered a new technique to dye their gray hair. Second, as more consumers are experiencing hair problems such as dandruff, gray hair, and hair loss, their use of beauty products is likely to increase as well. According to a survey released in January 2022 by the Dermatology and Skin Surgery Institute (DCSI), more than two-thirds of Americans over the age of 35 experience hair thinning or hair loss. Furthermore, the World Health Organization (WHO) released an estimate showing that in 2020, 30% of Japanese people will be over 60 years old. Third, increasing emphasis is being placed on developing organic and natural products to meet growing product demand. For example, Australian scalp care brand Straand debuted in the UK in November 2023. To create product uniqueness in a highly competitive market, the company focuses on developing microbiome-centric products that are free of animal testing.
Specifically, as mentioned in the article “20 Cheap Alternatives to Aveda Shampoo,” the global luxury hair care market is dominated by the luxury shampoo segment, which is expected to account for approximately 30.5% of the revenue share in 2023. I was there.
According to a Cirana report, sales of hair products in the prestige market grew by 10% year-on-year in the first half of 2024 in dollar terms, with styling and treatments having the highest growth rate within the category. Premiumization trends continue to drive growth. Over the past three years, three times as many hair products have been added as lower-end products, and these products account for 25% of the category’s volume (compared to 15% just three years ago). The premium hair market also makes for an interesting story for the channel, as it is the only beauty category where the majority of sales occur online. In fact, sales are growing by double digits, and the e-commerce channel shows no signs of slowing down.
the story continues
Dry shampoo is becoming increasingly popular among hair care products. As mentioned in our article “11 Dry Shampoo Alternatives for All Hair Colors and Types,” the dry shampoo market will grow from $5.35 billion in 2023 to a valuation of $9.18 billion in 2030. It is expected to grow to USD.
Looking ahead, the Frost & Sullivan report reveals that the hair care market is being transformed by disruptive technologies such as artificial intelligence, customized solutions, and innovative ingredients. The “dermatization” movement focuses on scalp health, with companies turning to regenerative medicine and beneficial ingredients like biotin and peptides. IoT-enabled grooming products and AI-powered scalp analysis technology improve personalized care. Companies are adopting water-free products, recyclable packaging, and reducing toxic chemicals as key sustainability priorities. Companies that want to meet changing customer preferences and reduce their environmental impact must promote scalp health and integrate next-generation technologies. These developments facilitate expansion and help brands remain competitive in a rapidly changing market.
Benoit Butruille, growth expert and principal consultant for Frost & Sullivan’s TechVision.
“Hair and scalp care is experiencing rapid growth, and it is very interesting to understand the innovations and strategies that are driving this growth. Technologies such as AI are being leveraged in the development of smart hair care devices. Additionally, sustainable practices are becoming increasingly important as more customers seek products made with ethically sourced and environmentally friendly ingredients.”
Methodology:
We scoured hair care ETF holdings and online rankings to create an initial list of 20 hair care stocks. We have selected the 10 most popular stocks among institutional investors. Stocks are ranked by the number of hedge funds that own the stock as of Q2 2024.
Why are we interested in stocks that hedge funds invest in? The reason is simple. Our research shows that by mimicking the top stock picks of the best hedge funds, you can outperform the market. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, outperforming the benchmark by 150 points. (Click here for details)
A happy couple browses products from this home and personal products company at a mass retailer.
Procter & Gamble Company (NYSE:PG)
Number of hedge fund investors: 64
The Procter & Gamble Company (NYSE:PG), one of the top stocks in the hair care industry, has grown to become one of the world leaders in consumer goods production with annual sales of more than $84 billion. Sales outside the company’s home market (the United States) account for more than half of its consolidated sales.
Leading hair care brands such as Head &Shoulders, Herbal Essences, Pantene, and Rejoice, as well as skin care and personal care brands such as Olay, Old Spice, Safeguard, Secret, SK-II, and Native, make up the Cincinnati-based company’s beauty I’m doing it. This division will account for 18% of the company’s net sales in 2024, excluding the corporate segment from the calculation.
Although PG’s 2024 results and 2025 outlook were in line with expectations, PG’s stock price fell 5% to 6% due to weak sales growth and slowing price growth over the past two quarters.
However, this does not mean that the company’s ability to compete has diminished. Additionally, P&G has changed its approach to brand investing to be more holistic, considering product performance, packaging, brand messaging, online and in-store execution, and the value it provides to retailers and customers. The move follows the company’s 10-year decision to discontinue approximately 100 brands to right-size its categories and geography.
In addition, the company’s strategic goals include investments in product development and marketing to support its consumer products lineup, ensuring the company’s brands continue to make an impact with customers and retailers. It continues to be one of the best hair care brands to buy. now.
Additionally, Procter & Gamble Company’s (NYSE:PG) strategic goals include investing in marketing and product innovation to promote a variety of everyday essentials, and to ensure that its brands reach consumers and retailers. ensure that it continues to have an impact, thereby maintaining the company’s position. A list of the best hair care stocks to buy right now.
Hair care organic sales in the second quarter of 2024 increased by high single digits compared to the same period last year due to an improved product mix due to price increases and an expansion of premium items.
This is one of the “stocks Jim Cramer can’t stop talking about.” He said:
With our commitment to innovation, sustainability and healthy cash flow, Procter & Gamble is well positioned to meet growing consumer demand and deliver value to our shareholders.
Fisher Asset Management, led by Ken Fisher, is the company’s largest shareholder with 17,550,134 shares worth $2.89 billion.
PG ranks #1 overall on our list of the best hair care stocks to buy. While we recognize PG’s potential as an investment, we believe some AI stocks are more likely to deliver higher returns over shorter time periods. If you’re looking for AI stocks with better prospects than PG, but trading at less than 5 times earnings, check out our report on the cheapest AI stocks.
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Disclosure: None. This article was originally published on Insider Monkey.
