Trend Watch

ETHNIC HAIR CARE

MAY 2019

∙ Perfume your world ∙

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Hair is by far the most important element of ethnic women’s image.

African/Black American women’s spending on hair is an important part of their beauty

budget. Today, Ethnic and Caucasian hair care markets exist in parallel with separate

salons, distribution, structure, and brands. Only by taking a deeper look into the

ethnic segment can we reveal more about this underexplored and

growing segment of beauty.

AT A GLANCE…

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TABLE OF CONTENTS

F R A G R A N C E C O L L E C T I O N

31M A R K E T

O V E R V I E WT R E N D S

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MARKET OVERVIEW

1 w h a t t o k n o w

c a t e g o r y o v e r v i e w

b r a n d s

f a c t s & f i g u r e s

c o n s u m e r i n s i g h t

p r o d u c t s h o w c a s e

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Facts to consider…

MARKET OVERVIEW - what to know

An estimated

of the U.S. population has textured hair, which

includes those with curly, coily or wavy hair

Source: GCI Magazine

Textured-haired consumers spend considerably more

than their straight-haired (naturally straight & those with

chemically relaxed hair) counterparts—an average of

$205 a year, versus $130 a year

Source: 2018 TextureTrends Report

More than

80% of women with curly and

coily hair say they purchase products specifically for textured hair rather than general market products

Source: 2018 TextureTrends Report

Less than

20% of the hair care shelf

space at most food, drug & mass retailers is

dedicated to products for texture

Source: 2018 TextureTrends Report

African Americans have cornered the ethnic hair & beauty market, ringing up

of the $63 million total industry spend in 2017

Source: Nielsen Insights

$54 million 65%

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MARKET OVERVIEW - category overview

Market Size for Hair Care(Current Year & Forecast Projection, North America)

Source: Mintel, Market Sizes for Hair Colorants, Hair Styling Agents, Shampoo & Conditioners

• In the last 3 years the market has been stable in market value, but forecasts are projected to increaseat a slow but steady rate.

$10.51$10.61

$10.79

$10.97

$11.17

$11.38

$11.60

$9.80

$10.00

$10.20

$10.40

$10.60

$10.80

$11.00

$11.20

$11.40

$11.60

$11.80

2016 2017 2018 2019 2020 2021 2022

Valu

e (b

n U

SD)

*1,514 *2,185 *1,942

* # of launches

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Key Brands for Ethnic Hair

MARKET OVERVIEW - brands

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• Black consumers report above-average use of styling gel, cream, or lotion. These products are known to help with hold & work to tame flyaways & frizz.

• They may also use these products to extend the wear of a hairstyle such as braids or locs. Hair oil is especially important to this group, as their hair texture typically requires more moisture & hydration.

MARKET OVERVIEW - facts & figures

Mintel: Shampoo, Conditioner & Hairstyling Products - US - April 2018 - Product Usage

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

White Black Asian

Regular shampoo

Regular conditioner

Hairspray

Styling gel, cream, or lotion

Leave-in conditioner

Hair oil

Base: 2,000 internet users aged 18+ who use haircare products

Top Formats & Textures for Hair Care(Hair Product Usage by Race, North America, 2018)

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MARKET OVERVIEW - consumer insight

Hair Characteristics

ASIANStraight to wavy hair

Round to slightly oval-shaped follicles.

CAUCASIAN Straight to curly hair

Oval-shaped follicles.

AFRO Curly to coiled hair

Oval to elliptical follicles.

While no two heads of hair are the same, there are three main classifications of hair type based on race – Asian hair, Afro hair & Caucasian hair (which can also be referred to as European hair).

• The shape of the follicle is what determines the hair’s shape. Asian hair grows from a round hair follicle, while Afro hair sprouts from an oval one, & Caucasian hair follicles vary. Being a dead material, the hair subsequently keeps this original shape – Asian hair is usually bone straight, Afro grows in a spiral like fashion, & Caucasian hair can be anything in between.

Source: The Belgravia Centre

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Top Product Claims for Ethnic Haircare

Source: Mintel: Shampoo, Conditioner & Hairstyling Products - US - April 2018

• Moisturizing claims & damage repair are key drivers for Black consumers, who use conditioning products to address hair challenges.

• Mainstream brands looking to appeal to consumers need to make sure their products call out moisture & damage repair claims, as these are key concerns for various groups.

“Which of these benefits or claims are most important to you when purchasing haircare products?”

Base: 1,922 internet users aged 18+ who use haircare products

MARKET OVERVIEW - consumer insight

For My Hair TypeConsumers have a variety of hair types & the one-size-fits-all approach with multi-benefit products may not work for all haircare consumers.

Repairs & Prevents DamageGenerally, damage concerns & hydration benefits go hand-in-hand as both work to give the consumer the appearance of healthy hair.

MoisturizingDry, damaged hair & constant manipulation from styling can prevent hair growth & moisture-loss.

NATURAL opportunity!

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1. VEGAN HAIR CARECurls just launched its first vegan haircare collection withall-natural ingredients like green tea, sea kelp, andavocado.

CURLSGreen Tea Hair Rinse 1

7. MULTI-USE FUNCTIONALITYA fast absorbing concentrate made up of 5 incredible oilsoffering hydration, protection and moisture to revive drylackluster hair.

BRIOGEOCurl Charisma2

HAIRFINITYHealthy Vitamins6

2. POTENT RECIPES FOR HAIRCurl Charisma is a thick, rich, and creamy moisturizingstyler that harnesses the conditioning benefits of flaxseedoil and shea butter and the nurturing power of chia seedand rice amino acids.

7 BOUCLÈME Revive 5 Hair Oil Active

PANTENEPro-V Gold Series Moisture

Boost Shampoo

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MARKET OVERVIEW - product showcase

6. POWERED BY SCIENCEHairfinity vitamins are a unique combination of mineralsand exclusive CAPILSANA® Complex which nourisheshair from within, for longer and stronger results.

3. 15 YEARS IN THE MAKINGPantene’s Gold Series Collection contains the latestbreakthrough technology, Pro-V nutrient blends, andpremium ingredients to provide a better user experience.

SLIPSilk Pillowcase5

5. BEAUTY SLEEP… FOR YOUR HAIR?A luxurious, hypoallergenic sham that protects your hair

from the creases and tugs caused by standard cotton,reducing split ends and ensuring a night of restorativebeauty sleep.

4. SHEET HAIR MASKA hair sleeping mask designed to be applied to dry hair,acting overnight for better results.

SEPHORA COLLECTION

Hair Sleeping Mask4

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TRENDS

2 t r e n d i n g n o w

f r a g r a n c e

S o z i o a n a l y s i s

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TRENDS - trending now

HEMP OFFERINGS IN HAIR CARE

Ingredient Trends

The buzz is building about cannabidiol or CBD, extracted fromthe cannabis sativa plant. It’s being added to a slew of beautyand skincare products. Now, salons can offer the benefits ofCBD for their haircare clients with the launch of EMERA CBDHaircare from Earthly Body.

It harnesses the benefits of 100% organic cannabidiol (CBD) oilfrom sustainable, harvested non-GMO industrial hemp plant.The CBD hemp-oil-infused hair care products worksynergistically with the body’s endocannabinoid system todeliver maximum moisture retention, improve the appearanceof fuller, thicker hair, and promote healthy hair and scalp.

PROFESSIONAL HAIR CARE POWERED BY CBD

Hair products infused with hemp are on the rise,with nearly one quarter of consumers claimingto have used or be interested in using hairproducts with hemp. While hemp haircareproducts are still new to the market, there existsa wide range of products curated for all hairtypes.

SHEA MOISTURE Mongongo & Hemp Seed Oils

Moisture Seal Collection

AGADIR INTERNATIONALHemp & Red Wine Collection

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In August 2018, P&G haircare brand, Head &Shoulders, launched its Royal Oils line createdby Black chemists for Black women. The RoyalOils collection expands Head & Shoulders’brand promise of dandruff free hair by focusingon scalp relief from excessive dryness toultimately have moisturized, healthy hair fromroot to tip.

TRENDS - trending now

P&G EXPANDS OFFERINGS TO AFRICAN-AMERICANS

Personalization & Inclusivity

The FORM Collection will help make hair care simpler, by offeringproducts specifically designed for individual hair needs. For women ofall hair textures, the FORM Collection is personal, versatile andminimizes guesswork.

FORM’s differentiated, personal approach starts with taking a shortonline FORM Consultation, where women are matched with a FORMRegimen that specifically addresses their individual needs. Eachperson who takes the FORM Consultation is delivered customizedproduct combinations and usage instructions for a personal hair careexperience.

A PERSONAL APPROACH TO HAIR CAREProducts created for a

specific hair type resonate with roughly

33% of US consumers

Source: Mintel

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TRENDS - trending now

This emerging cultural shift is challenging the association ofnappy hair with the ugliness that has been deeply ingrainedin many mixed-race cultures, especially within the UnitedStates. This has led more women to give up the artificially-imposed mandate that hair has to be straight to be beautiful.

This new enthusiasm for natural hair comes at the same timeas a major rise in organic products for hair care. It’s becomecommon knowledge that hair relaxers cause seriousdamage, including itching, inflammation, broken hairs, burns,and even hair loss.

Source: Curlcentric

In January 2019, Unilever launched SuaveProfessional for Natural Hair product line infusedwith shea butter and coconut oil to providemoisture, prevent frizz & breakage and repairdamage. Suave enlisted 5,000 women to gaugetheir attitudes and perceptions to create theirNatural Hair product line.

UNILEVER LAUNCHES LINE SPECIFICALLY FOR NATURAL HAIR

Natural Hair Movement

Sales have declined

2.3% during the past two

years due to a

22.7% fall in at-home relaxer

sales.

Source: Mintel

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Natural Hair Movement: CurlFest

A CELEBRATION OF NATURAL HAIR & BEAUTY

CurlFest is a powerful way for women to embrace their natural beauty in a society that often tells women & girls that curly hair is somehow less

than desirable.

The idea for the Curly Girl Collective was born about seven years ago, when a couple of women started an email chain to swap their natural hair care tips.

When they finally all met in person, it was a revelation.

The Curly Girl Collective launched CurlFest in 2014, & the festival’s popularity has been growing

exponentially since then. Just under 1,000 people came the first year & by last year, more than 20,000

people flooded Prospect Park in Brooklyn for the annual celebration.

Save the Date: CurlFest 2019 will be held on Saturday, July 27, 2019

TRENDS - trending now

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Green/Herbal/Woody51%

Gourmand/Edible

26%

Fantasy10%

Floral9%

Fruity4%

Green/Herbal/Woody Gourmand/Edible Fantasy Floral Fruity

Top 5 Fragrance Groups for Ethnic Hair Care(% by Variants, North America, 2016-2018)

• Green/Herbal/Woody scents run the spectrum from “light and refreshing” to “lively and invigorating”. Green and Herbal hair care ingredients like tea tree and peppermint are popular due to their amazing functional and therapeutic properties both for hair and scalp.

• Gourmand/Edible scents include common ingredients like shea, coconut, vanilla, and almond. These ingredients resonate well in consumers mind as they’re viewed as being more natural.

Source: Mintel, GNPD

TRENDS - fragrance

0 20 40 60 80 100

2016

2017

2018

Units

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Fragrance Callouts for Ethnic Hair Care(% by Variants, North America, 2016-2018)

COCONUTAside from making a great moisturizer for hair and scalp, coconut oil has been used as a natural remedy to combat frizz, get rid of dandruff, remove and prevent lice, and promote hair growth.

OLIVEOlive oil is a natural powerhouse when it comes to hair. It is naturally packed with anti-aging antioxidants and hydrating squalene, making it great for restoring health and luster.

ARGANVitamin E is extremely beneficial for hair, and is found in argan oil in high quantities. Vitamin E promotes healthy hair growth as it contains antioxidants, which help boost cells and encourage them to produce healthy hair.

SHEA BUTTERShea butter has been used for centuries to sooth dry itchy scalp and dandruff. It’s also a great source to provide moisture for dry or damaged hair because of its emolliating qualities.

ALOE/ALOE VERAAloe vera effectively cleanses hair follicles, removing oil and residue. It does not harm hair while cleaning. Unlike other chemicals in hair products, it’s gentle and preserves the integrity of hair.

TRENDS - fragrance

Top 5 Scents Unique & Notable Mentions

Source: Mintel, GNPD

MORINGAMoringa restores elasticity and the ability to retain moisture, therefore its an excellent natural hair conditioner. Moringa promotes faster hair growth naturally due to its richness in vitamins and minerals.

SUNFLOWERA number of characteristics make sunflower oil beneficial for hair. The linoleic acid it contains assists with slowing hair loss. The menthol assists with dandruff control while its antibacterial properties help keep the scalp microbial free.

BIRCHOne of the less well-known uses of birch essential oil is that it can facilitate the growth of healthier hair. Birch essential oil makes your hair stronger and fuller. It also prevents your hair from getting too dry or brittle.

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FR

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TRENDS - Sozio analysis

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FRAGRANCECOLLECTION

3 c l e a n s e

m o i s t u r i z e

r e c o n s t r u c t

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Ingredients that remove impurities without stripping away essential moisture.

CLEANSE

BIOSSANCESqualane + Tea Tree

Cleansing Gel

BRIOGEOGinseng + Biotin

Volumizing Shampoo

KLORANEShampoo

with Ylang-Ylang

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FRAGRANCE COLLECTION - cleanse

TopBergamot,

Bitter Orange, Tea Tree

MiddleClove Leaf,

Geranium Blossom

BaseBenzoin, Vetiver, Cashmere Woods

Benefits: Tea Tree Oil: Encourages hair growth

by helping to unclog hair follicles and nourish the roots

GREEN RUSH

SILKEN UP

TONIC GLOW

TopHerbal,

Citrus Medley

MiddleGreen Florals,

Honeyed Rose, Ginger

BaseBalsamic, Amber Musk,

Vanilla Absolute, Silky Woods

Benefits: Ginger: Has natural antiseptic and

anti-inflammatory properties that can help soothe scalp conditions

TopEucalyptus,

Citron, Sweet Basil

MiddleYlang Ylang,

Cinnamon Leaf, Carnation

BasePatchouli,

Black Vanilla, Spiced Woods

Benefits: Ylang Ylang: Can be used to clean

and unclog the scalp due to its antimicrobial properties

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MOISTURIZEA key aspect to sealing in water is to use nourishing ingredients

that will retain hydration and boost moisture.

HAIR FOODAlmond & Lotus

Repair Conditioner

CAROL’S DAUGHTERHair Milk

Leave-In Moisturizer

NOT YOUR MOTHER’SMatcha Green Tea & Apple Blossom

Nutrient Rich Butter Masque

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FRAGRANCE COLLECTION - moisturize

TopAnjou Pear,White Peach

MiddleDewy Jasmine,

Almond Blossom

BaseRosewood,

Agarwood, Sugared Amber

Benefits: Oatmeal: Contains vitamin B and penetrates the hair which

allows moisture retention

MIRACLE MILK

MOISTURE ELIXIR

HYDRA-CURE

TopZesty Grapefruit,

Lemon, Tea Leaves

MiddleSpicy, Powdery Floral,

Green Wheat, Cedar Leaf

BaseSandalwood, Patchouli,

Amber, Vanilla Sugar, Musks

Benefits: Tea Leaves: Rich in polyphenols,

vitamin C and E, which ensure shiny and soft hair

TopYuzu, Peach, Lemon Zest

MiddleGardenia,

Almond Blossom

BaseTonka Bean,

Honey Musk, Coconut Milk

Benefits: Almond: Due to its nourishing properties

and high levels of vitamin E, almond provides immense hydration

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Restore hair back to its healthy state by feeding it what it needs. Inspired by the wonders of nutrient-rich ingredients & the packed vitamins they contain.

RECONSTRUCT

GARNIERSmoothing Oil with

Coconut Oil & Cocoa Butter

BRIOGEOBanana + Coconut

Superfood Conditioner

MAUIMoisture Smooth & Repair

Vanilla Bean Hair Butter

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FRAGRANCE COLLECTION - reconstruct

TopApricot,

Orange Zest, Anise

MiddleHeliotrope,

Coco Water, Jasmine Petals

BaseAtlas Cedar,

Sandalwood, Vanilla Musk

Benefits: Coconut: Prevents hair breakage

and split ends, contributing to hair length

SECRETREMEDY

SUBLIME REPAIR

NANACUSTARD

TopBergamot,

Lemon Peel

MiddleOrchid,

Neroli, Magnolia Blossom

BaseBourbon Vanilla,

Tonka, White Musk

Benefits: Vanilla: Enhances blood flow that

improves hair growth

TopBanana Leaf,

Nectarine, Honeycrisp

MiddleTropical Hibiscus,Thai Coconut Milk

BaseCreamy Musk,

Vanilla Bean, Sugared Tonka

Benefits: Banana: Have amino acids that help

protect hair from environmental damage & citric acid that makes hair shiny

Latin & North AmericaSozio Inc

51 Ethel Road West Piscataway, NJ 08854 USAPhone: (+1) 732 572 5600

Fax: (+1) 732 572 0944

AsiaJ&E Sozio Asia Ltd

Unit C6, 15/F, TML TowerNo.3 Hoi Shing Road - Tsuen Wan, N.T.

Hong KongPhone: (852) 2111 0842

Fax: (852) 2111 0942

Europe, Africa and Middle East

Sozio SAS

6, Rue Barbès - CS8005092532 Levallois-Paris cedex - France

Phone: +33 (0) 1 81 93 00 60Fax: + 33 (0) 1 81 93 00 98

∙ Perfume your world ∙

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