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5 Target Markets for Shampoo Products

Starting a business in the hair care segment can be challenging with the amount of competition already in existence. One of the more competitive markets is shampoo products. Shampoo is a product that just about all people with hair use daily to keep their hair healthy and looking good. This means that there will always be a demand for this type of product. However, not every product is right for every person.

While the big names in the industry like Head & Shoulders and Herbal Essence seemingly have the market cornered, there are still new haircare brands coming into the market and capturing the attention of customers who are looking for a specific result from their hair care regimen. In fact, the global shampoo market is worth over $46 billion and growing. If you’re an entrepreneur who is looking to start a shampoo line in hopes of taking the market by storm, you first need to know who will most likely be interested in your product.

This is where knowing your target market is important. In this article, we look at a few target audiences for a shampoo line that hair care businesses can cater to. But first, let’s understand the importance of target markets for this type of product.

 

Understand Target Markets for a Shampoo

A target market refers to a specific group of consumers at which a company aims its products or services. Identifying a target market is an important part of a company’s marketing strategy. Once you know your target market, it helps to ensure that marketing efforts are directed towards the most likely potential customers. This concept acknowledges that every product or service can’t be for everyone. So, efficient marketing efforts should focus on a specific segment that would be the most receptive or benefit the most from the offered product.

This is true even in the case of a shampoo business. Instead of promoting its product to everyone, the business may recognize that its shampoo formulation is specially designed for people with a certain type of hair. For example, a shampoo business’s target market could be individuals with curly hair.

By identifying this segment, the company can create specialized advertisements, promotional campaigns, and product packaging that speaks directly to the needs and preferences of curly-haired individuals. They might highlight the benefits of the shampoo that reduces frizz, defines curls, or offers optimal hydration, elements that resonate with their target audience.

Choosing this target market doesn’t mean that others can’t or won’t buy the shampoo. However, it allows the business to be more focused and effective in its marketing strategy. In turn, potential customers within this target segment are more likely to feel understood and catered to. All of which can increase the likelihood of purchase and foster brand loyalty.

In essence, a target market is a bridge between a product and those who would most benefit from it. Now, let’s take a look at 5 possible target markets for a shampoo business.

 

People Ages 20-30

When thinking about the haircare market, the demographic of people aged 20-30 invariably presents itself as a vital target market for shampoo products. This age bracket is filled with students, young professionals, and new parents. They notoriously grapple with a spectrum of hair concerns. For example, they’re often dealing with the repercussions of styling and coloring damages to counteracting the early signs of hair thinning.

Not only do individuals in this age range seek products that offer restorative benefits, but they also typically veer towards options that boast of convenience and multi-functionality. Shampoo products that can efficiently address these hair care needs can profoundly resonate with this age group.

Consequently, offering specialized shampoos that promote hair health tailors perfectly with their often hectic lifestyles. As long as the specialized product is coupled with the elements of quick and effective care.

 

Individuals with Hair-Related Disorders

Another significantly crucial market is individuals experiencing hair-related disorders. For example, conditions such as alopecia, dandruff, and scalp psoriasis. This target market relentlessly seeks shampoo products that alleviate their conditions. It is also beneficial if the product is more gentle on the hair and scalp.

Crafting shampoos that are infused with medically approved and clinically tested ingredients serve to cater to this specialized market adeptly. Given the specific reasons people choose one shampoo over another, product claims should be research-backed.

For this audience, education is the key. Brands should offer clear, concise, and accessible information about how these shampoo formulations can specifically benefit individuals with hair disorders. This ensures not only the satisfaction and loyalty of these customers but also their trust. Navigating through the oftentimes complex and challenging journey of managing hair-related conditions can be tough. But once this audience finds a product they love and that works, they tend to become loyal to that brand.

 

People with Allergies or Sensitive Skin

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Similar to individuals with hair-related disorders are potential customers with allergies and sensitive skin. Brands have to acknowledge and accommodate varying individual needs. This is especially true when it comes to health and beauty products. The subset of people with allergies or sensitive skin distinctly stands out in the targeted shampoo market.

This demographic is often overlooked in the mainstream haircare industry. While these individuals want healthy and good-looking hair, they often value the health of their skin over the cosmetic benefits of using a particular shampoo. Shampoo formulations for this market necessitate meticulous curation of ingredients. They should ensure they are devoid of common allergens, irritants, and harsh chemicals.

The balance between efficacy and gentleness is important here. A company that wants to market to this audience should provide a cleansing and nourishing experience without compromising the individual’s dermatological health. Thus, the creation of hypoallergenic shampoos is crucial to satisfying and maintaining this consumer base.

These types of shampoos may contain some of the following ingredients:

  • argan oil
  • oat
  • glycerin
  • grape seed oil
  • chamomile
  • tea tree oil
  • aloe vera extract
  • coconut-derived ingredients
  • rose water
  • lavender oil

Using some of these more natural ingredients may be a good alternative to harsh chemicals that may cause allergic reactions.

 

Customers Looking for Organic Products

 

 

The demand for sustainable and environmentally viable products is increasing throughout all types of consumer markets. That includes the shampoo and conditioner segment of the hair-care market. Customers are seeking organic shampoos as an alternative to traditionally made products.

Similar to the organic food market, the demand for organic hair-care products such as shampoo is expected to grow. According to Technavio Research, the global organic shampoo market is forecasted to grow by $1,134.36 million during 2023-2027, accelerating at a CAGR of 9.76%.

The demand here encompasses more than just the absence of synthetic additives—it spans toward a desire for ethically sourced ingredients. It may also include things like eco-friendly packaging and a transparent supply chain. For brands that want to reach this market, they should look into integrating organic ingredients that harness the power of nature.

These brands should utilize ingredients such as botanical extracts, essential oils, and natural emollients in their shampoo formulations. This not only augments their appeal but also substantiates their efficacy with the time-honored effectiveness of nature.

Additionally, letting this audience know that the brand takes part in initiatives like recycling programs and carbon offsetting can help brands resonate with this target market.

 

People With Cosmetic Hair Concerns

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Lastly, shampoo makers may want to target individuals who grapple with cosmetic hair concerns. Unlike other markets that value cosmetic benefits secondary or tertiary over comfort, ethics, and conveniences, this market is looking for something that primarily makes their hair look better.

Several things can cause a person to seek a product that will make their hair more aesthetically pleasing. Here are just a few:

  • Dullness
  • Lack of volume
  • Undesired texture
  • Thinning hair

This segment is perpetually in pursuit of shampoo products that can elevate their hair aesthetics first. While this market may care about the overall health of their hair, their aim when buying products is to achieve a visually noticeable result.

The incorporation of ingredients that not only revive the hair but also instill a visually pleasing and tangible improvement becomes crucial. Shampoo products that incorporate, for example, biotin for strength, keratin for smoothness, or natural fruit extracts for a glossy finish are among the ingredients this market is looking for in a shampoo.

Also, brands can incorporate a spectrum of options catering to varied hair types. Shampoo brands can specifically market to customers with curly, straight, or wavy, hair types. 

Conclusion

To understand your target audience, you will need to do some market research and analysis. You may also need to engage with these markets and survey them to know if you have a viable product to meet their needs. Once you understand your audience and their needs, you are in a position to offer them a product they will love.

Also read:

Finding the Target Market for a Hair Salon

5 Target Markets for a Spa

Thomas Martin
Tom is a member of the Editorial Team at StartUp Mindset. He has over 6 years of experience with writing on business, entrepreneurship, and other topics. He mainly focuses on online businesses, digital publishing, marketing and eCommerce startups.

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Tom is a member of the Editorial Team at StartUp Mindset. He has over 6 years of experience with writing on business, entrepreneurship, and other topics. He mainly focuses on online businesses, digital publishing, marketing and eCommerce startups.

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