Beauty & Wellness Briefing: How Estée Lauder Companies is staying competitive in the changing scalp-care category

Leading the news cycle this week are allegations against hair-care brand Mielle Organics alleging its Rosemary Mint Hair and Scalp Oil has caused hair loss. The product, which went viral last year for its praise across TikTok, sells for under $12 at stores like Target, Ulta Beauty and Amazon. 

The allegations, which were shared by TikTok user Danesha Mo’Nék on September 2, cite hair loss and scalp irritation and were later echoed by other consumers who claim they experienced similar results. Mielle founder Monique Rodriguez took to social media on September 9 to assure customers the formula had not changed since Mielle was acquired by P&G early last year and the team was investigating the recent allegations. 

This customer backlash is the newest in a laundry list of similar claims against leading hair-care brands, many of which focus on the scalp. For example, a decade ago, WEN hair-care products were the subject of hair-loss allegations that prompted a class action lawsuit and FDA investigation. Last year, Olaplex received similar allegations, as did DevaCurl in 2020 — the latter went on to pay a $5.2 million class action settlement in 2021. 

Still, allegations and lawsuits like this have done little to quell consumer demand for products that address top scalp issues such as thinning, shedding, hair loss, product buildup, excess oil and dryness. Instead, brands across the industry continue to chart a path in this growing subset of the hair-care category. 

As previously reported by Glossy, the scalp category has been overperforming for the past several years, including a 36% sales growth in prestige scalp-care products from May of 2023 to May of 2024, according to Circana market research company. Numerous brands continue to launch new scalp-focused products, often as one-off serums or scrubs reminiscent of other buzzy launches. Standouts over the past few weeks include new offerings from Cecred, Foreo and Moroccanoil, which launched Restoring Hair & Edge Drops, an LED and massaging scalp tool, and a new suite of scalp-focused products, respectively. 

According to a report by Mintel market research company, scalp care’s growth is not set to slow as hair loss and dryness are universal concerns across hair textures and types, beating out frizz, split ends, damage and oil production as the biggest concerns facing consumers in a 2023 survey. 

But perhaps the most surprising finding from Mintel’s survey is the age at which these concerns begin to plague consumers. When distributed across age groups, these results show that hair loss is the top concern for women aged 18-34, affecting 38% of those surveyed. This number dips to 32% for those over 55 and sits at 37% for those 35-54. 

As it becomes more likely that the scalp category could lead to overall hair-care category growth for years to come, Glossy checked in with industry leader Estée Lauder Companies to learn how the conglomerate is navigating the changing needs of consumers of all ages. 

“A lot of people study the follicle, but they’re not necessarily studying the surrounding environment,” Christine Hall, Estée Lauder Companies’ vp of research and development across hair care, color and innovation, told Glossy. “We’re learning that your scalp is aging just like your face is aging, and in fact, it’s under a lot of stress. Each follicle is like a mini organ, and it’s constantly active. … It’s going through its own cycle of growth and resting.” 

ELC’s scalp strategy is powered by a nine-year partnership with the University of Bradford, an institution in the U.K. that studies the scalp and hair. The partnership has been fruitful: Over nine years, they’ve published in prestigious publications “Journal of Investigative Dermatology” and “The Journal of Experimental Dermatology” and have presented their findings at 22 conferences. They’ve found that the scalp is dealing with UV stress, oxidative stress and at least as many other stressors as are impacting the face. 

“As you age, the epidermis becomes thinner, the collagen becomes more fragmented, and the dermis becomes harder and stiffer [and is] affecting how the follicles are behaving and growing hair,” ELC’s Hall said. 

Through this research, Hall’s team has found that hair thinning most commonly starts around 35-40 years old, and is often exacerbated by physical and emotional stressors, such as Covid-19, which could be a root cause for the growth of this category now. 

Translating research into products also took time: ELC’s team reviewed more than 1,000 ingredients. “What we can address is premature aging. You don’t want it to happen any faster than it has to,” Hall said. 

Aveda’s scalp-focused offerings, including its Scalp Solutions line and the new five-step Invati Ultra Advanced Collection, which was launched this summer, are a hallmark result of this research. “Each of these products has a different combination [of ingredients], because you actually have to match it to the formulation,” Hall said. That is, active ingredients must also be selected for how they mix into the overall formula, whether it be oil- or water-based, and for the desired finish of the product. The overall formula stability and sensorial experience are also considered.

As it turns out, the ingredients that proved effective are split between those found in Traditional Chinese Medicine and Ayurvedic practices, as well as those inspired by recent synthetic biotechnology. For example, after discovering a synthetic iteration of the plant alpinia was effective in supporting scalp health, the ELC team found a supplier of the actual plant and created an extract only for its new Aveda Invati Ultra Advanced Revitalizing Scalp Serum, which retails for $57. 

In August, which was Hair Loss Awareness month, Aveda promoted its Invati system using a strong stat: Seventy-five percent of Invati Ultra Advanced users saw less hair on their brush. 

ELC’s long-term investment has proven successful. According to Google Trends data, the terms “scalp” and “Aveda” searched together saw 250% growth over the past 12 months. Top trending terms associated with “scalp” since the beginning of the year include “Matrix Biolage Scalp Sync Shampoo” (up 250%), under the L’Oreal USA umbrella; and “Ouai Scalp Serum” (up 180%), a P&G brand. 

In 2023, searches related to the scalp grew by 650%, and searches for Mielle Organics which also used the term “scalp” grew by 60% during this time period, according to Google Trends data. 

As ELC continues to invest in scalp care, its goals are to create more hybrid products that offer long-term scalp benefits but are marketed for their immediate results, whether smoothing, hydrating or other styling benefits. And as we transition to fall, a natural shedding season, Hall suggests consumers not panic when they see hair in their brush. 

“We actually deliberately avoid September as the start of a [hair product since it’s the start of shedding season in North America],” she said. “So don’t panic!”

Executive moves: 

• Delphine Herve is the new svp and CFO at Sephora North America. Herve has been with Sephora since 2014 and replaced Christophe Le Boterff, who is retiring, in her new role.
  
• Michael T. Thompson is the new CMO of Pangaea Holdings, the parent company of body-care brand Meridian and men’s skin-care brand Lumin Skin. He previously held roles at Amyris, working on Pipette baby care and 4U by Tia hair care, as well as The Honest Company and Red Bull. 

News to know:

• Walgreens pharmacy, which has more than 8,000 locations in the United States, has launched a new private-label skin- and body-care range that includes several recognizable dupes. The line features nine products, priced between $9-$26. Packaging and ingredient profiles are reminiscent of prestige best-sellers from Laneige, Kiehl’s, Sol de Janeiro and Youth to the People, among others.
  
• Cassandra Grey, who founded the luxury content and commerce platform and Los Angeles boutique concept Violet Grey in 2013, is returning as the brand’s co-owner. Grey will serve on the executive board and work alongside CEO Sherif Guirgis and chief brand officer Sarah Brown. The change follows the acquisition of Violet Grey from Farfetch by Grey and Guirgis, whose background is in private equity. Farfetch purchased Violet Grey in January 2022 for over $50 million in cash and stock but shuttered its beauty business in August of 2023. As part of the latest acquisition, the company plans to expand its brand development arm called Violet Lab, which Grey will oversee as chairman and artistic director.
  
• L’Oréal’s BOLD venture capital fund has made a minority investment in French biotech company Abolis Biotechnologies. Other investors include a longtime partner to L’Oréal, global specialty manufacturer Evonik CVC. It’s part of a €35 million raise.

• “Barbie” actress Margot Robbie is the new face of Chanel No.5 fragrance. Robbie has been a face of Chanel since 2018 and has starred in several color cosmetics campaigns. Her first fragrance campaign will be released next month.
  
• The Fearless Fund, an Atlanta-based venture capital firm started in 2019 to finance BIPOC-owned brands to help correct funding disparity, has settled the lawsuit brought against the group by the American Alliance for Equal Rights. The Fearless Fund will sunset its grant program for Black women as part of the settlement. Lawyer Ben Crump, who represented Fearless Fund, sees the end of the lawsuit as a win for diversity. “By strategically avoiding a Supreme Court ruling that could have eliminated race-based funding, we protected vital opportunities for the entire Black and brown community,” he said in a statement. 

• H&M, which opened its first standalone beauty store in Sweden in 2023, announced it will expand its footprint in beauty with two new locations within Sweden. H&M Beauty will also add E.l.f. Beauty, The Inkey List, Kylie Cosmetics, MAC Cosmetics and Olaplex, among other brands, to its assortment.
  
• Supplement company Olly, which was founded in 2013 and acquired by Unilever in 2019, has launched a menopause supplement called Mellow Menopause. And, as part of its campaign, it announced an internal menopause policy that will impact its employees. The active ingredient of the new supplement, called EstroG-100, is said to improve hot flashes, mood swings and vaginal dryness. The $30 supplement will include 30 capsules and be available DTC and on Amazon. Meanwhile, the company’s new internal policy includes flexible work hours, additional WFH time and in-office accommodations for those going through menopause. 

Stat of the week:

Consumer interest in gourmand fragrances is on the rise, according to market research company Mintel. Its data shows that the global percentage of pistachio- and peanut-focused fragrance launches rose from 9% in 2021 to 58% in 2023. Gourmand fragrances are usually defined by synthetic notes that smell like food, like fruit or cake, for example. As reported by Glossy, gourmand fragrances gaining popularity also include milky, vanilla and marshmallow notes. 

In the headlines:

The new normal: Spending $400 at the hair salon. Beauty product launches have plunged—is that bad? Ritual’s latest launch is a fertility-supporting lemonade. Glossier names a new class of grantees. Wonderfeel is the latest Silicon Valley startup long on longevity. Naomi Watts’s menopause brand Stripes Beauty inaugurates national hot flash day. Inclusive retail platform Thirteen Lune is exploring deal options. 

Listen in: 

Lisa Guerrera and Emmy Ketcham, co-founders of skin-care brand Experiment Beauty, join the Glossy Beauty Podcast to discuss their TikTok-famous slime green mask and chemistry-first approach to R&D. 

Need a Glossy recap? 

‘It’s like a cult’: How online perfume communities are shaping the fragrance industry. How beauty brands won NYFW proximity marketing through the industry’s buzziest gifting suite. Credo debuts Pact Collective’s sustainable pump in a new private label skin-care range. How Botox and fillers made their way to the dentist’s office. NYFW-timed pop-ups proved a big success for beauty brands. The luxury bag charms craze is not stopping.