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MEN’S GROOMING DISRUPTION AND CONSOLIDATION SNAPSHOT

May 24, 2019
May 24, 2019
Photo: Patrick Coddou via Unsplash

The global men’s grooming industry is expected to hit $78.6bn by 2023, from $57.7bn in 2017, according to a Research and Markets report. The men’s category saw subscription and DTC start-ups shake up the status quo in men’s grooming through the shaving category. Taking significant market share from strategics has resulted in a string of acquisitions.

Gillette, who patented the disposable razor, has been the leader in the razor blade market for over a hundred years, commanding 47.3% of the American market last year (down from 70% in 2010), according to data from Euromonitor. Edgewell’s top brands held about 13.6% of the market, Shave Club’s market share stands at 8.5%, while Harry’s had about 2.6%.

Here’s a snapshot of the consolidation and current landscape:

1. Procter & Gamble’s portfolio consists of Braun, Gillette, Art of Shaving, and Old Spice.

Bevel: December 2018 in an acquisition reported to be somewhere between $20 million and $40 million for the DTC brand positioned to serve men of color.

2. Edgewell Personal Care’s portfolio consists of Schick and Wilkinson Sword razor systems, composed of razor handles and refillable blades along with Edge, Shave Guard, and Personna.

Harry’s: May 2019 in a cash and stock transaction that values Harry’s at $1.37 billion. The brand has captured about 2% of the $2.8bn men’s shaving market since its founding in 2013, according to market research firm Euromonitor. The business is not profitable but Edgewell executives told investors that Harry’s expects to to be “generally” breakeven in 2019.

Jack Black: January 2018 in a transaction where terms were not released, but the brand had a broad global footprint and operated in more than 50 markets.The wellness start-up launched just over one year ago and has raised an additional $100 million in venture capital funding on a pre-money valuation of $1 billion, which is a 2x increase from its previous valuation.

Bulldog: November 2016 in a transaction where terms were not released but the brand had global distribution in over 17,000 retailers in 14 markets at the time of the transaction.

3. Unilever’s portfolio consists of men’s grooming brands Axe and Dove Men+Care.

Dollar Shave Club: July 2016 in a transaction that multiple sources said Unilever paid $1 billion for in cash for the subscription shaving brand. At the time the start-up had revenue of $152 million and was on track to exceed $200 million. The business was not profitable but had captured 16% of cartridge market share and 5% of revenue in the men’s razor and blade business.

The men’s category has been disrupted primarily through shaving but a new crop of DTC disrupters are tackling men’s grooming through hair loss, health, and wellness. Ones to watch:

  • Hims: The wellness start-up launched just over one year ago and raised an additional $100 million in venture capital funding on a pre-money valuation of $1 billion. This was a 2x increase from its previous valuation and brings the total raised to $197 million in seven rounds of funding.
  • Keeps is a venture-backed subscription-based online marketplace created by healthcare start-up Thirty Madison for men’s hair-loss prevention medications.
  • Ro is a cloud-based pharmacy for erectile dysfunction that was launched in 2017 with $3 million in funding and a five-person team a little over a year ago. They raised a total of $176.1 million in three rounds.
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