According to a report by Mordor Intelligence, the global hair care industry is valued at $93.89 billion as of 2025. It is anticipated to grow at a compound annual growth rate of 3.4% between 2025 and 2030 and reach $110.97 billion by 2030. The Asia-Pacific region is the largest market for the hair care industry worldwide. However, South America takes the top spot as the fastest growing.
The steady growth in the global hair care industry can be attributed to various factors, including consumers’ evolving preferences and increasing technological advancements. In addition, macro trends such as a growing focus on personal wellness, inclination towards top luxury and premium hair care brands, and growing disposable incomes are further supporting growth in the global hair care industry. The demand for eco-friendly and sustainable solutions is also growing, as consumers are inclined towards organic, natural, and vegan hair care solutions and products.
Another prominent driver of market growth in the global hair care industry is the rising prevalence of hair concerns. These include hair fall, dandruff, heat damage from styling tools, and other conditions. Around 50 million men and 30 million women in the United States were affected by androgenetic alopecia in 2023 alone. Androgenetic alopecia is commonly known as male-pattern baldness in men and female-pattern hair loss in women. The rise of such concerns is ballooning the demand for specialized hair care products. The hair loss treatment segment is thus anticipated to grow at a compound annual growth rate of 7.6% between 2024 and 2029.
Another report by Mordor Intelligence shows similar trends in the hair care products market. It has a size of $94.10 billion as of 2025 and is expected to grow at a compound annual growth rate of 3.39% between 2025 and 2030. This translates to an anticipated market size of around $111.16 billion by 2030. Specialized concerns such as hair and scalp problems are driving this growth. In addition, consumers are inclined towards hair care products recommended by professionals, further driving the market.
Trump’s Tariffs: Would American Consumers Suffer from Increased Prices?
American consumers are rightfully skeptical about the future, wondering if President Donald Trump’s tariffs could lead to a trade war. Trump said he would impose 25% tariffs on Canadian and Mexican goods and 10% on imported goods from China. He also signaled that potential tariffs on items imported from the European Union may be next. According to CNBC, Trump agreed to halt tariffs against Mexico for a month and delay those against Canada for at least 30 days. However, China has already responded with additional tariffs of up to 15% on goods imported from the United States.
American consumers expect these tariffs to directly impact their wallets. A recent consumer survey conducted by BOE on the potential effects of tariffs on consumers found that nearly 86% of Americans believed their wallets would be affected by the scenario. 12% are already stockpiling items, with a majority of others changing their shopping habits to accommodate the effects of these tariffs on their bank accounts.
Economists corroborate this view and say that many businesses will likely pass down the additional expenses to customers, indirectly or directly. This is why tariffs typically trigger increased prices for consumers. Higher tariffs on items traded between the US and China may result in inflated prices on appliances, apparel, electronics, and toys. Similarly, tariffs against Canada and Mexico may increase the already existing pressure on grocery prices.
According to the Bureau of Labor Statistics, grocery prices are up 28% over the last five years. These conditions are materializing when consumer spending is already stretched, with many households feeling financial strain. The US economy has noted steady progress overall in bringing inflation down. According to the Bureau of Labor Statistics, the consumer price index, a significant inflation measure, increased 2.9% in December 2024 compared to a year earlier, down from a June 2022 pandemic-era high of 9.1%. However, most cases show a slowing in price increases instead of a significant fall.
Our Methodology
We sifted through stock screeners, online rankings, and ETFs to compile a list of 25 hair care stocks. We then selected the top 12 most popular stocks among elite hedge funds as of Q3 2024. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund sentiment.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
11 Dry Shampoo Alternatives for Every Hair Color and Type
Unilever PLC (NYSE:UL) is a fast-moving consumer goods (FMCG) company that operates through five segments: Personal Care, Nutrition, Beauty and Well-Being, Home Care, and Ice Cream. The Beauty and Well-Being segment sells hair care products, including conditioner, shampoo, styling products, and more. Unilever PLC (NYSE:UL) offers over 400 brands worldwide.
Unilever PLC (NYSE:UL) saw underlying sales growth of 4.5% in fiscal Q3 2024, with volume growth rising to 3.6%. All of its business segments achieved positive volume growth in the quarter, with Beauty & Well-being up by 6.7% in sales growth, Personal Care by 4.4%, and Ice Cream by 9.8%, primarily due to operational improvements and strong demand. Unilever PLC (NYSE:UL) also reported a strong position in its cash segment. Its free cash flow for the period came in at €2.2 billion. The company ended the first half of fiscal 2024 with €4.97 billion in cash and cash equivalents, compared with €4.1 billion at the end of December 2023.
The company’s productivity program is thus on track, and so is the separation of its Ice Cream business. The separation activity is expected to be completed by 2025 end and is anticipated to result in a more focused Unilever PLC (NYSE:UL) with a concentrated portfolio. The company ranks tenth on our list of the 12 best hair care stocks to buy according to hedge funds. On February 5, Callum Elliott from Bernstein maintained a Buy rating on Unilever PLC (NYSE:UL) with a price target of £52.00.
Hotchkis & Wiley Funds highlighted Unilever PLC’s (NYSE:UL) strong performance in its Q3 2024 investor letter. Here is what the firm had to say:
“Unilever PLC (NYSE:UL) is one of the world’s leading suppliers of consumer goods in the food, home care, and personal care categories, maintaining #1 or #2 market share over 75% of its business. With a new CEO and the involvement of an activist investor (Trian), Unilever is focused on execution and consistency, expecting low to mid-single digit volume-driven top line growth over the medium term, profit growth ahead of sales growth due to operating leverage and mix, and consistent return of cash to shareholders. Additionally, the company has announced plans to separate the Ice Cream business (13% of 2023 sales), which is expected to be completed by the end of 2025 and increase organic sales growth to 4-6% annually. Over the last quarter, the stock price reached a five-year high, as the company has continued to execute the plans laid out above. Unilever has not yet released their official third-quarter results but has reiterated their confidence in achieving 3-5% organic sales growth for the full year, with the majority of this growth being driven by volume.”
Overall, UL ranks 10th on our list of best hair care stocks to buy right now. While we acknowledge the potential of UL, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than UL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
