Production of Razor Blade
Overview of the Razor Blade Industry
Razor blades are designed from a particular type of corrosion-resistant stainless steel. They are now used by both men and women to remove facial and body hair. The global razor blade industry was valued at $18 billion in 2019 and is likely to grow to $22 billion by 2030. The CAGR over this period is steady at 2.1%.
Key Drivers
Increasing awareness among consumers on the importance of personal hygiene is a key driver for the industry. People prefer grooming themselves at home which has fueled the demand for razor blades. Men have become more conscious about their looks and grooming. A recent study conducted by P&G revealed that 43% of men in the age group 18-24 and 39% in the age group of 25-34 prefer to be clean-shaven. Women have also started using razor blades for shaving body hair which has helped boost the demand more. Manufacturers are now offering customized razor blades specially designed for women. There is a growing preference for double-edged razor blades over single-edged ones. This is because the former gives better shaving and comfort.
Manufacturers also focus on a subscription-based model to increase their sales. Under this model, blades are delivered to the consumers every week or month depending on their subscription. Increasing disposable incomes are also driving consumers to buy premium razors.
Future Scope and Demand
North America accounts for the highest revenue share of the global razor blade industry. It is expected to maintain its domination in the industry for at least the next 10 years. Europe is also likely to generate stable demand due to rising disposable income and economic stability in the region. However, the highest revenue growth will be clocked by the Asia Pacific region. This is due to a denser population and faster urbanization. India and China will experience a CAGR of 3.5% and 2.4% respectively during the period 2020-2030, which is significantly higher than the global industry CAGR. This can be attributed mainly to the growing consciousness for grooming and rising disposable incomes in these countries.
Manufacturers are aware that the next trigger in demand for razor blades is likely to come from rural pockets. Countries in the Asia Pacific like India, Sri Lanka, Vietnam, the Philippines, etc. have a large proportion of the rural population. Most of these people use inferior quality razors offered by local unorganized players due to a lack of spending power. With growing awareness of using quality products and a steady increase in disposable incomes, these people are likely to use branded razor blades. This will contribute significantly to the demand and revenue.
Based on the type, cartridge razors dominated the industry in 2019. They are easy to replace and will remain popular going ahead. Premium razors are expected to see higher growth as mass-segment razors will experience maturation. Growing global disposable income will also boost the demand for premium razor blades. Stainless-steel blades will control the largest market share till 2030. They are rust-resistant which increases their shelf life.
