"A number of trends are driving this sector including the age-resistance of the baby boomers and the trend towards hair as part of an overall fashion statement," says Lenka Contreras, vice president and head of the Consumer Products practice for Kline's research division. "In response to these trends companies are introducing new products and extending shade palettes to capture a greater share of this market. Procter and Gamble introduced new products to their Clairol and Wella brands in 2005 while L'Oreal introduced new color lines to L'Oreal Professional and L'Oreal Technique."

According to the Kline study, SALON HAIR CARE USA 2005, sales of professional hair coloring products reached almost $700 million in 2005. The nearly 6% growth was fueled by demand among consumers of all ages and genders. Baby boomers are flocking to salons, seeking a more youthful appearance. Younger generations are increasingly using color as a fashion statement, following the lead of celebrities such as Lindsay Lohan, Ashlee Simpson, and Madonna. Also, popular techniques such as highlights and lowlights require a stylist and specialized products to achieve and maintain the look.

Salon styling product sales reached nearly $450 million in 2005, an increase of over 5% from the previous year. The steady growth over the past five years has been driven by innovative new lines and the use of multiple styling products to achieve trendy hairstyles. Stylists continue to employ a more consultative approach especially with men, educating clients about how to achieve a range of styles at home. Modern styles for men and women require the use of multiple products, helping to drive growth in this category.

Styling and coloring products have evolved to meet consumers changing needs. Products are gentler and more natural, reducing concern about hair damage while shorter processing times appeal to time-starved patrons. An influx of new shampoos and conditioners designed to preserve and enhance color-treated hair also supports category growth.

Among the other salon categories, shampoos and conditioners have experienced slower growth due partly to the proliferation of better-quality mass-market items. Mass-market shampoos and conditioners are increasingly mimicking the attributes of salon brands, becoming more solution and benefits-oriented. Prestige brands such as those sold in Sephora contain premium ingredients, making them a viable alternative to salon brands.

SALON HAIR CARE USA 2005 is the eighth edition of Kline's comprehensive study on the professional hair care products industry. It examines category size and growth, market shares of the leading companies and brands, and sales by segment for in-salon use and retail purchases, with forecasts to 2010. Kline recently expanded this series to offer SALON HAIR CARE WESTERN EUROPE 2005, which covers France, Germany, Italy, Spain, and the United Kingdom.

For more information on these market studies, go to http://www.klinegroup.com/Y357.htm or contact Lenka Contreras at +1-973-435-3407. Those based in Europe should contact Pilar Pardo at +32 2 776 0737. To learn more about Kline's customized consulting capabilities for the consumer products industry, contact Susan Babinsky at +1-973-435-3365. Established in 1959, Kline & Company (http://www.klinegroup.com) is an international business consulting and market research firm serving the consumer products, specialty chemicals, life sciences, and petroleum and energy industries.