Haircare industry in a lather

A survey by Mintel reveals the haircare market is set to lose millions of dollars as women spend less on shampoo by taking advantage of bargain deals at the supermarket.

Ina Woitalla has come to her favourite London hairdresser for a cut and blow dry.

Looking after her appearance is important but she's also watching the pennies.

A survey by market researcher Mintel shows a quarter of British women are spending less on shampoo.

It's estimated the sector could see a wash-out by the end of the year with a 24 million dollar drop in overall value.

Beauty analyst Alexandra Richmond says it not only British women who are cutting back.

Alexandra Richmond, senior beauty analyst, Mintel, saying:

"We've interviewed women in France and the U.S. as well as the UK and actually the French women are the most frugal when it comes to their beauty treatments in total. They're far more likely to try and do things at home to save money. It's very much austerity chic when it comes to the French and in America those women are far more likely to either spend less or stop going to the hair salon, but then the recessions been a bit deeper there, so these women are really feeling the pinch and save money where they can."

While the survey expects to see sales in salon products fall its good news for supermarkets.

People like Ina are now on the lookout for two-for-one offers and trial sizes.

Ina Woitalla, saying:

"I'm more aware now of all the offers that are out there and the fact that you can get cheaper brands for better value so I'll continue to look out for offers but at the same time I'm quite sure that I will opt for the odd expensive really good product from the salon once the recession is over."

Salon owner Peter says the recession has cost him some regular clients.

Peter Dragicevic, owner of Glass hair salon, saying:

"We try to do word of mouth, we try to do 'recommend a friend' discounts and things like that. Getting new clients at this time is almost pointless so we're trying to work on our regular clients and keeping them happy."

The recession is biting hard but hairdressers, and shampoo makers everywhere, will be hoping the shine and bounce will be back with extra gloss.

Hayley Platt, Reuters.