Mane character energy

Research evidence excerpt

Mane character energy

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Croda

Reiterate Rating: BUY | PO: 3,800 GBp | Price: 3,031 GBp

Wash & grow: hair care’s wave of excitement 12 June 2026

The hair care market appears to be flexing renewed vigour, with big brand owners like Equity

L’Oreal and Henkel calling out the dynamism of the category. This is in stark contrast to

a traditionally rather mature profile. According to Euromonitor, the hair care market

Key Changesgrew 0% pa in the 2014-22 period but is now accelerating to 6%. In fact, the latest

Nielsen data shows hair care is growing faster than skin care in Europe and the US. Hair (GBp) Previous Current

represents approx £150mn of Croda’s revenue; equivalent to c.15% of its Consumer Care 2026E EPS 157 158

revenues, or 10% of the whole group. Hair care has perhaps gone under the radar as a 2027E EPS 179 178

historically rather low growth and low margin category, but we think a swing in its 2028E EPS 199 197

fortunes can play an important role in re-building the perception of the broader Beauty

Care franchise with investors. Reiterate Buy rating and PO of GBp 3800. We tweak our Matthew Yates >>

Research Analyst

estimates. MLI (UK)

+44 20 7996 4537

Category complexity boosts ingredient inclusion matthew.yates@bofa.com

Innovation and evolving consumption patterns are driving category growth, across both Julia Winckelmann >> Research Analyst

mass and the premium segment. This bodes well for ingredients growing faster than the MLI (UK)

category through rising product complexity. The concept of ‘skinification’ of the scalp is +44julia.winckelmann@bofa.com20 7995 2685

adding more active ingredients such as peptides and ceramides. A demographic/cultural John Campbell >>