According to Barclays, Henkel's haircare business is gaining momentum as consumers continue to invest in self-care despite economic uncertainties. The company has expanded its haircare portfolio through acquisitions, including the $1.4 billion purchase of Olaplex and the acquisition of Not Your Mother's.
Barclays believes that Henkel's haircare segment, which now represents a significant portion of its Consumer Brands sales, is becoming increasingly important, overshadowing its traditional laundry business. The global haircare market, valued at approximately 63 billion euros, is expected to grow over 4% annually through 2025, driven by trends in premiumization and sophisticated consumer routines.
Barclays has raised its growth forecasts for Henkel's haircare division through 2028, anticipating accelerated growth starting in the third quarter of 2027. The analysts emphasize that Henkel must effectively leverage its expanded brand portfolio to achieve sustained market share gains, particularly in key markets like the U.S., China, and Mexico