Argan oil is a must-have to make Hair Care sales more profitable than ever. Its high demand, with the market growing by 11.4% each year, and the associated margins make it one of the most important ingredients contributing to the profitability of retailers in the sector. We tell you why this is so, as well as give you the best recommendations to make your average ticket go through the roof with our Kativa Argan Oil range.
The market situation, a more than convincing reason to include argan oil in your Hair Care products
One of the main factors driving the growth of the argan oil market is the increasing demand from the culinary, medical and personal care and cosmetic Hair Care industries.
According to a report by Grand View Research, the global argan oil market size was estimated at $299.45 million in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 11.4% between 2023 and 2030.
The prevalence of skin and hair problems, such as acne, dermatitis and dry, damaged hair, is increasing worldwide and has led people to switch from synthetic to natural personal care products.
In addition, factors such as the increasing participation of women in the labor force and an aging population are triggering demand for argan oil in cosmetics.
Manufacturers are expanding their product lines with improved product solutions to meet consumer needs.
Products for the defense of skin and hair against environmental conditions, such as solar radiation, are also in trend, including those with argan oil in their composition.
How Kativa Argan Oil is going to make your store’s average ticket increase
Argan oil is undoubtedly one of the most requested premium ingredients by Hair Care consumers. Not only because of its effects and benefits, but also because of its exclusivity.
It is a product with a costly artisanal extraction, which requires a large number of fruits to produce a small amount of oil. Moreover, it comes from only a few countries, including Morocco, where the argan tree originates.
For all these reasons, their market price is generally high. According to an In a Business Insider Spain article, argan oil can cost up to $300 per liter.
This limited production, coupled with its high price and high demand, means that its sales margins are also high. In fact, some experts say that profit margins on “luxury” products are typically around 21%, well above mass consumer products.
Argan oil is therefore one of those products that multiply revenues without the need to achieve large volumes of sales.
This situation also forces retailers to be very careful in their choice of suppliers for argan oil, as they have to choose those who can guarantee them a constant and timely stock, without forgetting to opt for the best purchasing and distribution conditions.
In addition to the obvious benefits of argan oil for the consumer, the purchase of argan oil also provides the following benefits contributes to the development of local communities in developing countriesThe main activities of the women are the harvesting of the fruit and the extraction of the oil itself.
From an environmental point of view, the cultivation of the argan tree helps to a great extent to slow down the desertification of the area.
Two aspects that are worth making known to the target public, who are increasingly involved in the social and environmental effects of their purchasing decisions.
For all these reasons, the Kativa Argan Oil range should not be missing on your shelves, because we are talking about a perfect set of products to define a beauty ritual at the height of what your audience expects.
This increases the likelihood that the average ticket will continue to grow thanks to the joint sale of complementary products. These include shampoo, conditioner, deep treatment mask, styling cream, Argan Shine and Argan 4 Oils.
From Starbrands we want to make it easier for you to achieve all these benefits through a partner program. to suit the most ambitious retailers and distributors. And with it you will make a huge leap, selling more and with a higher margin. Contact us and we will give you all the details you need to know about it.