Opportunity
Problem
Hair care products have been around for centuries, and over time, the ingredients and formulations have evolved. Many traditional hair care products contain chemicals such as parabens, sulfates, petrolatum, and mineral oil. Recent research has shown that these chemicals can cause harm to hair and scalp health. They can strip the hair of its natural oils, leading to dryness, breakage, and damage.
To address these concerns, new inventions such as natural shampoos and hair care products have been developed. These products are formulated with natural ingredients, free of harsh chemicals, and are designed to nourish and strengthen the hair while maintaining scalp health.
Companies are now more aware than ever that certain chemicals in hair care products can damage hair, and they are focusing on creating products that are not only good for hair but also good for the planet. They are reducing the use of virgin plastic in packaging and sourcing materials from domestic US sources, which reduces the use of fossil fuels and energy in package manufacturing.
There are great opportunities for companies to produce hair products made with natural ingredients. As consumers become increasingly health-conscious and environmentally aware, they are seeking products that are free from harmful chemicals and synthetic ingredients. Natural hair products are typically made from ingredients derived from natural sources, such as plants, fruits, vegetables, nuts, and oils. These ingredients are chosen for their nourishing and beneficial properties for hair.
Natural hair care products can offer several benefits over traditional hair care products, including being gentler on the hair and scalp, reducing exposure to harmful chemicals, and promoting sustainability and environmental responsibility.
The demand for natural hair care products is growing rapidly, with consumers willing to pay a premium for products that are made with natural ingredients. Companies that can successfully develop and market natural hair care products stand to benefit from this growing demand and can potentially capture a significant share of the market.
To succeed in the natural hair care market, companies must focus on product quality, innovation, and sustainability. They must also be transparent about their ingredients and production processes, and effectively communicate the benefits of their products to consumers.
Overall, the natural hair care market presents a significant opportunity for companies to differentiate themselves from competitors and meet the growing demand for natural, sustainable, and healthy hair care products.
The trend towards more natural and sustainable hair care products is a positive step forward in promoting healthy hair and a healthy environment. Consumers can now make more informed decisions when selecting hair care products, choosing those that are better for their hair and the planet.
Solution
A solution to the challenges faced by the hair product industry is to shift towards using more natural ingredients in hair products. Natural ingredients are often less harmful to the hair and scalp than synthetic ingredients, making them a safer and healthier option for consumers.
In recent years, there has been a growing trend towards using natural hair products. Many hair product manufacturers have responded by creating product lines that feature natural ingredients, and some brands have even committed to using only natural ingredients in all of their products.
Another solution is for the hair product industry to increase transparency and provide consumers with more information about the ingredients used in their products. This can include clear labeling of all ingredients, as well as information about potential side effects and risks associated with product use.
Furthermore, regulatory bodies can play a role in ensuring that hair product manufacturers adhere to safety standards and that their products are thoroughly tested before being released to the market.
By prioritizing the use of natural ingredients, increasing transparency, and adhering to safety standards, the hair product industry can provide consumers with safer and healthier products that meet their needs and preferences.
Market
The market for hair products is significant both in the United States and globally.
In the US, the hair care market was valued at approximately USD 15.7 billion in 2020 and is expected to reach USD 18.1 billion by 2025, growing at a CAGR of 2.3% during the forecast period. The market in the US is driven by factors such as increased consumer awareness of hair care, growing interest in personal grooming and beauty, and technological advancements in product manufacturing.
Globally, the hair care market was valued at USD 92.3 billion in 2020 and is projected to reach USD 116.3 billion by 2028, growing at a CAGR of 3.0% during the forecast period. Factors driving the global hair care market include the growing demand for personal care products, increasing concerns related to hair health and grooming, and the rise in disposable incomes in developing countries.
The market for hair products is highly competitive, with numerous established players and new entrants vying for market share. Some of the major players in the global hair care market include L’Oreal SA, Unilever, Procter & Gamble, Henkel AG & Co. KGaA, and Johnson & Johnson Services, Inc.
Overall, the hair care market is expected to continue to grow in the coming years, driven by factors such as increased consumer demand, technological advancements, and a growing interest in natural hair care products.
Understanding the demographic, geographic, psychographic, and behavioral characteristics of our target market can be essential in creating a successful marketing strategy.
By analyzing the demographic factors, Aeterna can identify the age group, gender, income level, education, ethnicity, and family size of its target audience. This information can help the company create products and marketing campaigns that are tailored to their needs and preferences.
Geographic factors, such as the region, city, and neighborhood, can help Aeterna determine the location of its target audience and adjust its marketing strategy accordingly.
Psychographic characteristics, such as social class, lifestyle, personality, values, and life stage, provide insights into the interests, attitudes, and motivations of the target audience. This information can help create messages and campaigns that resonate with them and differentiate Aeterna’s brand from competitors.
Behaviouristic factors, such as loyalty and attitude, can provide insights into how Aeterna’s target audience interacts with its brand and products. By analyzing these factors, the company can identify opportunities to improve customer satisfaction and retention.
By considering these various factors, Aeterna can gain a more comprehensive understanding of its target market, minimize risks, and identify new opportunities for growth in the Natural hair product market.
Natural Hair Care Product Market size:
Natural Hair Care Product Market is expected to grow at a CAGR of 4.7% during the forecast period. The Global Natural Hair Care Product Market is expected to reach US$ 4.82 bn by 2029.
Natural Hair Care Product Market Overview:
Growing awareness associated with the aid of natural hair care products is one of the main factors powering market development. Most of natural hair care products have antioxidants that contain Vitamin E, which offers nourishment to the scalp and endorses hair growth. Harmful effects of using chemical-based shampoos and conditioners, like bad hair quality & rough scalp, have goaded customers to opt for natural products.
As customers continue to grow more discerning, their awareness about the potentially harmful effects of certain ingredients has skyrocketed. They have become increasingly vigilant in their product choices, actively avoiding those that contain sulfates, parabens, mineral oil, and alcohol. This newfound consciousness has paved the way for a significant surge in the demand for natural hair care products.
In their pursuit of healthier alternatives, customers are now seeking out products that are free from these potentially harmful substances. As a result, the market for natural hair care products has experienced a remarkable boost, with manufacturers responding to this shift by formulating products that harness the power of natural ingredients. The increasing demand for these safer and more sustainable options has sparked a positive change in the industry, promoting greater transparency, research, and innovation to meet the evolving needs and preferences of discerning customers.
Fig 1: Verified Market Research: Global Natural Hair Care Product Market: Aeterna
Roadmap
Aeterna has developed a roadmap that aims to comprehensively assess all aspects of its business requirements. This approach will result in a strategic tool that serves as a guide for more effective management.
By adopting this roadmap, the company will be better equipped to identify opportunities and challenges and address important questions that require attention. The roadmap will enable the company to focus on crucial areas that need to be tackled to achieve its goals and ensure its continued success.
The roadmap for Aeterna as a company that produces natural hair products will likely involve several key steps:
- The company may focus on expanding its product line to offer a broader range of natural hair care products that cater to different hair types and textures. This can help the brand to appeal to a wider range of consumers and increase its market share.
- Aeterna may invest in marketing and brand awareness campaigns to increase its visibility and customer base. This can include social media marketing, influencer partnerships, and collaborations with hair salons and beauty supply stores.
- The company may focus on expanding its distribution channels to make its products more widely available to consumers. This can include partnerships with retailers, online sales platforms, and direct-to-consumer sales channels.
Aeterna can capitalize on its advantages as a new natural product entering the US market, including its remarkable refillable or reusable bottles, a laboratory that produces natural liquids, and a commitment to eco-friendliness, to foster its expansion and triumph.
By accentuating these attributes through effective marketing and branding communication, Aeterna can establish a unique identity among its rivals and attract consumers who value sustainability and natural ingredients.
With a strong product line, effective marketing, and expanded distribution channels, Aeterna can build a loyal customer base and become a leader in the natural hair care market.
Aeterna will ensure that our roadmap encompasses the following aspects of our business:
- Establish the vision, strategy, and objectives for the business, considering the introduction of new services.
- Set targets for revenue and profitability, and implement rigorous financial controls to maintain the profitability and sustainability of the business.
- Create accurate forecasts and projections, adopting a conservative approach to safeguard the investment of all stakeholders.
- Prioritize the delivery of promised outcomes and act cautiously to safeguard the assets of all involved parties. Expand the team as required to ensure agility, adaptability, and expertise to support business growth.
- Develop and maintain robust relationships with clients and partners to ensure long-term success.
- Continuously monitor and evaluate business performance, making necessary adjustments and improvements to remain competitive in the market.
Milestones:
Our ultimate goal at Aeterna is to eventually distribute our brand globally.
Our business model is scalable:
Aeterna possesses high scalability. Through our diversified product offerings and advanced manufacturing capabilities, we can easily expand our production to cater to larger volumes across various customer segments.
Company History
Aeterna is a newly established natural hair product company in the US that will be launching its products in 2023. The company has no previous history.
Guido and Stefano Spacagna, two brothers from Italy, own a successful hairdressing salon in Florida, US. They recognized that many hair care companies promise beautiful, shiny, and lustrous hair, but their products are often filled with toxic ingredients such as sulfates, silicones, parabens, and many others. These chemicals strip hair of its natural oils, damage the hair shaft, and can even be carcinogenic, particularly in unnatural shampoos and conditioners.
In response, Aeterna decided to create a trustworthy natural hair product that is effective, sustainable, and safe for both users and the environment. The company invested significant time, money, and research in developing custom formulas while ensuring that product quality and safety standards are met for Aeterna products.
Aeterna was born out of their love for both hair and the planet. Guido and Stefano are constantly on the lookout for high-quality, functional products. While they excel in providing top-notch coloring products for their clients, they have struggled to find the same balance of quality and functionality in natural and eco-friendly home hair care lines.
Guido and Stefano became disheartened to sell products that they did not fully believe in, to clients who trusted them. That is the reason that they set out on a new challenge to create a natural and eco-sustainable product that truly works. Their motto is simple: “a natural product that works.” The product line is formulated with up to 98% natural ingredients and is free of harmful additives like sulfate, parabens, mineral oils, and gluten. Additionally, all of Aeterna’s products are cruelty-free.
To create the best product line, Guido and Stefano went back to their roots in Italy to source the most exclusive and highest quality working ingredients. The packaging is designed with a minimalist, modern, and contemporary look that pays homage to nature and the natural products that Aeterna has created. A lot of effort was put into creating packaging that is not only aesthetically pleasing but also eco-friendly.
Aeterna’s bottles and containers are made from recycled or recyclable materials, and the company encourages its customers to refill them rather than discard them. Aeterna aims to instill a sense of “too beautiful to throw away” among their consumers when they finish the product.
The name “Aeterna” comes from Latin and means eternal. Aeterna represents Guido and Stefano’s never-ending fight to create better products that deliver superior results without harming the planet.
Aeterna leverages amazing ingredients and elements that nature has given us to create a better future for all.
