Industry products are mostly essential, and the industry recovered quickly from the recession
Los Angeles, CA (PRWEB) March 15, 2012
The African-American Hair Product Manufacturing industry is composed of producers that make hair products used to maintain and style African-American hair. Demand for industry products is driven primarily by the growing African-American population in the United States. According to the US Census, the African-American population has grown by over four million people from 2000 to 2010 (latest available data). According to IBISWorld industry analyst Mary Nanfelt, this growth has created an environment in which industry products have expanded. In the five years to 2012, industry revenue is expected to grow at an average annual rate of 1.7% to $185.1 million.
Despite the industry's growing market base, the industry was still hampered by the recession. In 2008, when consumer sentiment crashed by 25.5%, industry revenue growth slowed to 1.8%. In 2009, when per capita disposable income fell for the first time since 1991, industry revenue declined 1.3%. “With limited income,” says Nanfelt, “consumers refrained from purchasing discretionary hair products and purchased lower-priced essential items.” Profit also suffered during the recession but has since rebounded as the economy has begun to recover. The economy has been slowly growing, and an uptick in per capita disposable income is expected to help industry revenue grow in 2012. Industry revenue is also expected to expand as firms bring new products to market in response to changing consumer preferences. These new items have helped boost revenue further. The African-American Hair Product Manufacturing industry has a moderate degree of concentration, with the three major companies – L’Oreal, Unilever and Johnson Products Company – controlling a little over half of the industry’s revenue.
Fortunately for African-American Hair product manufacturers, conditions are only expected to get better for the industry over the five years to 2017. As the African-American population continues to grow, demand for industry products will increase further. This trend, coupled with per capita disposable income growth, will push industry revenue up. The increasing demand and opportunities for African-American hair product manufacturers will bring new operators into the industry. The number of companies is expected to grow as well. For more information, visit IBISWorld’s African-American Hair Product Manufacturing report in the US industry page.
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IBISWorld industry Report Key Topics
This industry makes hair products that are specifically created to treat, maintain and style African-American hair. Industry products include shampoo and conditioner, styling products, moisturizing products and hair dye.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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