Every year, around the world, sales of shampoos, conditioners, styling aids, finishing products and assorted hair care products reach a staggering $65 billion.
Global Sales - Hair Care Products
|Hair Care Categories||Annual Sales|
|Styling Agents||$9 billion|
|Salon Hair Care||$5 billion|
|2-in-1 products||$3 billion|
|Perms & Relaxants||$1 billion|
Not surprisingly, if you make hair shampoo and conditioner, this is by far the biggest earner in the hair care category. After all, who doesn’t wash their hair – from babies to children, men and women, young and old – on an almost daily basis? Not to mention, the amount of shampoo used in hairdressing salons.
Making hair care products boasts high profit margins – most products are between 60-80% water (usually 80%), and the remaining ingredients are amazingly inexpensive. In fact, when you begin to make shampoo for yourself, you will wonder why you were paying $15 for a bottle of shampoo that could cost less than $1 to manufacture.
There are myriad niche markets if you want to start a business and initially create shampoos only, then expand your range of hair care products to include conditioners, styling agents, finishing products, etc.
If you operate your own hairdressing salon or you’re interested in starting a high profit business, read this article about private label hair care.
You can make shampoo for babies – these could be fragrance-free or mildly scented, containing a small quantity of natural oils and gentle surfactants, specially suited for babies’ sensitive scalps. From there, you can branch out to make additional baby care products – baby bath, baby lotion.
You can make shampoo for men – choose masculine aromas and packaging. Then expand your range of male grooming products to include shaving foam, aftershave lotion, deodorant, and men’s skin care such as sunscreens and moisturizers. This is a burgeoning market – especially anti-aging facial products for men. Years ago, you couldn’t find many males willing to take so much as a sniff at eye gel or SPF 15 – today, it’s a very different (and profitable) story.
You can make shampoo for children – fun and colorful packaging and pleasing aromas help kids enjoy washing their hair. Detangling conditioners and leave-in conditioners are always a winner for little girls with long hair.
You can make shampoo, conditioner and styling products for the ethnic hair market – this is a huge growth industry. It is as easy to manufacture shampoo and conditioners for ethnic hair types as it is for any other, and the costs of production are virtually the same, but you can often charge a premium for these in-demand products. In addition, the market is huge and largely untapped – you have only to look at the size of the population with this type of hair to know it’s an incredible number. There’s a big market in most countries – North Africa, South Africa, the Middle East, USA, etc. The other bonus in the ethnic hair care market is that many of these customers will purchase multiple products to help maintain their hair – from gentle cleansing shampoos to intensive daily conditioners, weekly conditioning treatments and masques, leave-in conditioners, smoothing balms, styling products, finishing products such as moisturizing creams and pomades, silicons for the ends of the hair … you name it, there are so many possibilities.
You can even make shampoo for pets! I’ve earned some really big bucks making private label dog shampoos for veterinary clinics.
You can manufacture shampoo and make conditioner as a private label hair care manufacturer. This is where you can build a long-term high-profit business.
If you read this article about private label cosmetics, you will understand why many retailers – from hair salons, spa and beauty salons, to supermarkets, pharmacies and department stores are growing increasingly wary and weary from selling the brands produced by the major cosmetics manufacturing companies.
Many of my biggest accounts over the years have come from such businesses. Many salon owners have promoted supposedly “salon exclusive” hair care brands, giving years of valuable word of mouth recommendations to thousands of their clients, only to find that once they have done all the hard work and free advertising, these brands then become widely available in discount outlets.
What do they do? They ask me to manufacture shampoo for them under their own label. Or, I approach them with an unbeatable proposition to make shampoo and hair care products with their own name and logo on the bottle. Some salons may continue to sell other brands, but now focus their recommendations on their own private label – and reap the rewards for their own pockets instead of the greedy conglomerates.
The scope to create shampoo and hair care products doesn’t stop just with salons – I find many similar situations across many industries. It’s incredibly easy to convince retailers of the value of selling their own brands – the unethical, underhanded and often illegal tactics of the major cosmetics manufacturing companies make it easy.
Interested to start your own business and discover how to make shampoo just like the major cosmetic manufacturers? AustraLab provides formulations equal to – or even better than – the major cosmetics manufacturing companies – click here to start your own high profit business and make shampoo, conditioners and hair styling aids.