In this article, we will look at the 12 Best Hair Care Stocks to Buy According to Hedge Funds.
Overview of the Global Hair Care Industry
According to a report by Mordor Intelligence, the global hair care industry is valued at $93.89 billion as of 2025. It is anticipated to grow at a compound annual growth rate of 3.4% between 2025 and 2030 and reach $110.97 billion by 2030. The Asia-Pacific region is the largest market for the hair care industry worldwide. However, South America takes the top spot as the fastest growing.
The steady growth in the global hair care industry can be attributed to various factors, including consumers’ evolving preferences and increasing technological advancements. In addition, macro trends such as a growing focus on personal wellness, inclination towards top luxury and premium hair care brands, and growing disposable incomes are further supporting growth in the global hair care industry. The demand for eco-friendly and sustainable solutions is also growing, as consumers are inclined towards organic, natural, and vegan hair care solutions and products.
Another prominent driver of market growth in the global hair care industry is the rising prevalence of hair concerns. These include hair fall, dandruff, heat damage from styling tools, and other conditions. Around 50 million men and 30 million women in the United States were affected by androgenetic alopecia in 2023 alone. Androgenetic alopecia is commonly known as male-pattern baldness in men and female-pattern hair loss in women. The rise of such concerns is ballooning the demand for specialized hair care products. The hair loss treatment segment is thus anticipated to grow at a compound annual growth rate of 7.6% between 2024 and 2029.
Another report by Mordor Intelligence shows similar trends in the hair care products market. It has a size of $94.10 billion as of 2025 and is expected to grow at a compound annual growth rate of 3.39% between 2025 and 2030. This translates to an anticipated market size of around $111.16 billion by 2030. Specialized concerns such as hair and scalp problems are driving this growth. In addition, consumers are inclined towards hair care products recommended by professionals, further driving the market.
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Trump’s Tariffs: Would American Consumers Suffer from Increased Prices?
American consumers are rightfully skeptical about the future, wondering if President Donald Trump’s tariffs could lead to a trade war. Trump said he would impose 25% tariffs on Canadian and Mexican goods and 10% on imported goods from China. He also signaled that potential tariffs on items imported from the European Union may be next. According to CNBC, Trump agreed to halt tariffs against Mexico for a month and delay those against Canada for at least 30 days. However, China has already responded with additional tariffs of up to 15% on goods imported from the United States.
American consumers expect these tariffs to directly impact their wallets. A recent consumer survey conducted by BOE on the potential effects of tariffs on consumers found that nearly 86% of Americans believed their wallets would be affected by the scenario. 12% are already stockpiling items, with a majority of others changing their shopping habits to accommodate the effects of these tariffs on their bank accounts.
Economists corroborate this view and say that many businesses will likely pass down the additional expenses to customers, indirectly or directly. This is why tariffs typically trigger increased prices for consumers. Higher tariffs on items traded between the US and China may result in inflated prices on appliances, apparel, electronics, and toys. Similarly, tariffs against Canada and Mexico may increase the already existing pressure on grocery prices.
According to the Bureau of Labor Statistics, grocery prices are up 28% over the last five years. These conditions are materializing when consumer spending is already stretched, with many households feeling financial strain. The US economy has noted steady progress overall in bringing inflation down. According to the Bureau of Labor Statistics, the consumer price index, a significant inflation measure, increased 2.9% in December 2024 compared to a year earlier, down from a June 2022 pandemic-era high of 9.1%. However, most cases show a slowing in price increases instead of a significant fall.
With these trends in view, let’s look at the 12 best hair care stocks to buy.
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Our Methodology
We sifted through stock screeners, online rankings, and ETFs to compile a list of 25 hair care stocks. We then selected the top 12 most popular stocks among elite hedge funds as of Q3 2024. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund sentiment.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
12 Best Hair Care Stocks to Buy According to Hedge Funds
12. Regis Corporation (NYSE:RGS)
Number of Hedge Fund Holders: 3
Regis Corporation (NYSE:RGS) is a haircare company that owns and franchises cosmetology education and beauty salons. The company offers a range of hair care services, including styling, coloring, and haircuts, along with an elaborate selection of nationally recognized professional haircare products. It operates through two segments: franchise salons and company-owned salons. The company owns, franchises, or holds ownership interests in over 4,800 locations across the globe. Regis Corporation’s (NYSE:RGS) brands include Cost Cutters, First Choice Haircutters, Supercuts, SmartStyle, and more.
The company recently acquired Alline Salon Group, its largest franchisee, adding $83 million in revenue and $5.8 million in EBITDA. The strategic acquisition of 314 salons is anticipated to strengthen the company’s operational footprint while maintaining an asset-light model with a 93% franchise base.
While Regis Corporation (NYSE:RGS) reported a decreased consolidated revenue of $46.1 million in fiscal Q1 2025, down by $7.3 million compared to the prior year, its overall operational results reflect the company’s efforts to stabilize its business. The decrease in revenue was attributed to lower store count and same-store sales. The company’s strategic initiatives, such as the acquisition of Alline Salon Group, are expected to support its stabilization and help boost growth in the long term.
11. Olaplex Holdings, Inc. (NASDAQ:OLPX)
Number of Hedge Fund Holders: 18
Olaplex Holdings, Inc. (NASDAQ:OLPX) is a technology-driven beauty company focusing on hair health. Its portfolio comprises around 17 complementary products specialized to improve hair health. These products have three uses: protection, maintenance, and treatment. The company’s products are offered through specialty retail, professional, and direct-to-consumer (DTC) channels.
Olaplex Holdings, Inc. (NASDAQ:OLPX) reported a 3.6% decline in its net sales for fiscal Q3 2024 compared to a year ago. However, it reflected a sequential improvement from fiscal Q2 2024. The decline was attributed to weaker-than-expected results in its international business. Fiscal 2024 was a year of transformation for the company, as it took a long-term view of its strategic priorities and initiatives to position Olaplex Holdings, Inc. (NASDAQ:OLPX) for growth. It is making progress in improving its business’s health and expanding its portfolio.
The company announced three new innovative products in fiscal Q3 2024: No. 5 Leave-In Conditioner, Bond Shaper Curl Rebuilding salon treatment, and No. 10 Bond Shaper Curl Defining Gel. Since Olaplex Holdings, Inc. (NASDAQ:OLPX) is a science-enabled company, such new innovations are a significant force behind its global appeal. According to Circana’s retail tracking data of the US hair market, the company had 4 of the 5 best-selling prestige hair care products year-to-date in 2024. It also has a healthy balance sheet and strong cash generation, which allows it to continue investing in its future growth. On January 6, Piper Sandler analyst Korinne Wolfmeyer raised the firm’s price target to $2 from $1.50.
Here is what ClearBridge Mid Cap Growth Strategy has to say about Olaplex Holdings, Inc. in its Q3 2021 investor letter:
“Within capital markets, the US initial public offering (IPO) market remains active with $27 billion in deals during the third quarter, while chunky secondary offerings from private holders weighed on selected equities. We remained selective in the new issue market, participating in the IPO of Olaplex Holdings in the consumer staples sector. Olaplex is a marketer of hair care products targeting a massive consumer market where it is less than 1% penetrated. The company possesses a differentiated model driven by 1) a patented “bond building” ingredient, 2) a devout stylist community and social media presence that is larger than its mass channel peers, and 3) a fully outsourced model that borders on licensing.”
