Cookie and Privacy Settings

This website uses cookies to enable essential functions like the user login and sessions. We also use cookies and third-party tools to improve your surfing experience on preplounge.com. You can choose to activate only essential cookies or all cookies. You can always change your preference in the cookie and privacy settings. This link can also be found in the footer of the site. If you need more information, please visit our privacy policy.

Data processing in the USA: By clicking on "I accept", you also consent, in accordance with article 49 paragraph 1 sentence 1 lit. GDPR, to your data being processed in the USA (by Google LLC, Facebook Inc., LinkedIn Inc., Stripe, Paypal).

Manage settings individually I accept
expert
Expert with best answer

Antonello

98% Recommendation Rate

154 Meetings

5,224 Q&A Upvotes

USD 219 / Coaching

7

How would you estimate the market size for vegan shampoos in the UK?

7 answers

  • Upvotes
  • Date ascending
  • Date descending
Best Answer
Book a coaching with Antonello

98% Recommendation Rate

154 Meetings

5,224 Q&A Upvotes

USD 219 / Coaching

Book a coaching with Udayan

98% Recommendation Rate

95 Meetings

3,165 Q&A Upvotes

USD 239 / Coaching

This would be a subset of

  • Vegans (~3-5%) - can include 80% of folks here as being vegan is an identity
  • People that care about clean beauty products - you can estimate it based on something rational...any number around 10-20% would be reasonable in my opinion
  • Subset of people that care enough about animal rights to switch shampoos - (first calculate those that care about animal rights and then a small percentage of them that would shift)

With those numbers you can easily estimate it using standard population metrics.

Best,

Udayan

This would be a subset of

  • Vegans (~3-5%) - can include 80% of folks here as being vegan is an identity
  • People that care about clean beauty products - you can estimate it based on something rational...any number around 10-20% would be reasonable in my opinion
  • Subset of people that care enough about animal rights to switch shampoos - (first calculate those that care about animal rights and then a small percentage of them that would shift)

With those numbers you can easily estimate it using standard population metrics.

Best,

Udayan

Book a coaching with Ian

100% Recommendation Rate

233 Meetings

20,324 Q&A Upvotes

USD 289 / Coaching

  1. Population of country
  2. Split by income/wealth level (poor, middle, upper class)
  3. Estimate frequency of shampoo purchase by group per year (of course, moderately directly correlated with socioeconomic status...benchmark off of your annualy usage)
  4. Estimate % of each group that would use vegan shampoos (also strongly correlated with socioeconomic status)
  5. Price per bottle - based off what you see (if you only know "normal" shampoo, obviously this product is a premium product, so increase the price by x %)
  6. Multiply 2x3x4x5

And voila!

  1. Population of country
  2. Split by income/wealth level (poor, middle, upper class)
  3. Estimate frequency of shampoo purchase by group per year (of course, moderately directly correlated with socioeconomic status...benchmark off of your annualy usage)
  4. Estimate % of each group that would use vegan shampoos (also strongly correlated with socioeconomic status)
  5. Price per bottle - based off what you see (if you only know "normal" shampoo, obviously this product is a premium product, so increase the price by x %)
  6. Multiply 2x3x4x5

And voila!

Book a coaching with Raj

100% Recommendation Rate

52 Meetings

866 Q&A Upvotes

USD 169 / Coaching

Hi!

Many great answers already around how to think about this. I would structure it around the use cases:

  1. Ethical - vegans who will switch to the shampoo for moral reasons
  2. Cosmetic - people who will switch to the shampoo as they are highly conscious of cosmetic products they use and ingredients
  3. Medical - people who HAVE to switch as vegan shampoos are the only ones suitable e.g. skin conditions like eczema

If I was the interviewer asking this question, I would like to see if you could identity unconventional markets like number 3 above with a bit of lateral thinking.

The general approach around estimating population, % of population for each, willingness to pay etc. would work as per all other market sizing questions.

Hi!

Many great answers already around how to think about this. I would structure it around the use cases:

  1. Ethical - vegans who will switch to the shampoo for moral reasons
  2. Cosmetic - people who will switch to the shampoo as they are highly conscious of cosmetic products they use and ingredients
  3. Medical - people who HAVE to switch as vegan shampoos are the only ones suitable e.g. skin conditions like eczema

If I was the interviewer asking this question, I would like to see if you could identity unconventional markets like number 3 above with a bit of lateral thinking.

The general approach around estimating population, % of population for each, willingness to pay etc. would work as per all other market sizing questions.

I would probably go for a simple approach:

  • Number of vegan hairwashes
    • Total Population (UK, ~60m)
    • Vegans (~2%)
    • Non-Vegans using vegan products for their reasons (~5%)
    • Frequency of hairwashes (say 4x/week across the board)
  • Number of portions per bottle (say 20)
  • Price per bottle (5GBP, around double the normal price)

That would get you to 60m x 7% x 4 x 50 = 840,000,000 vegan hairwashes with 42m bottles at 5GBP, i.e a market size of ~200mGBP/anno.

I would probably go for a simple approach:

  • Number of vegan hairwashes
    • Total Population (UK, ~60m)
    • Vegans (~2%)
    • Non-Vegans using vegan products for their reasons (~5%)
    • Frequency of hairwashes (say 4x/week across the board)
  • Number of portions per bottle (say 20)
  • Price per bottle (5GBP, around double the normal price)

That would get you to 60m x 7% x 4 x 50 = 840,000,000 vegan hairwashes with 42m bottles at 5GBP, i.e a market size of ~200mGBP/anno.

Book a coaching with Gaurav

100% Recommendation Rate

197 Meetings

6,277 Q&A Upvotes

USD 169 / Coaching

I agree with what Udayan has proposed. IMO, you need to take into consideration all three options.

I agree with what Udayan has proposed. IMO, you need to take into consideration all three options.

Book a coaching with Clara

100% Recommendation Rate

55 Meetings

14,478 Q&A Upvotes

USD 229 / Coaching

Hello!

I think the easiest is to calculate the % of vegans -since I don´t think that many more people other than them would buy the shampoos-.

However, this market sizing does not seem as the classical one you would find in a case - it´s too straight-forward.

Hope it helps!

Cheers,

Clara

Hello!

I think the easiest is to calculate the % of vegans -since I don´t think that many more people other than them would buy the shampoos-.

However, this market sizing does not seem as the classical one you would find in a case - it´s too straight-forward.

Hope it helps!

Cheers,

Clara

Related case(s)

Oliver Wyman case: Full Electrons Ahead

Solved 99.6k times
Oliver Wyman case: Full Electrons Ahead Your client, large automotive OEM WyCar, has developed its first fully electric vehicle (EV) and introduced it as a pilot on the Austrian market last year. However, sales have been far below the expected numbers. The management has engaged you to support them in understanding the reasons and advise them on how to adjust the product offering.
4.6 5 6483
| Rating: (4.6 / 5.0)

Your client, large automotive OEM WyCar, has developed its first fully electric vehicle (EV) and introduced it as a pilot on the Austrian market last year. However, sales have been far below the expected numbers. The management has engaged you to support them in understanding the reasons and advise ... Open whole case

Bain Case: Old Winery

Solved 68.5k times
Bain Case: Old Winery You have inherited the “Old Winery” from your grandfather, a winery which has been family owned for five generations and can be dated back to the 16th century. Half of the eleven hectares are used to grow white grapes, the other half to grow red grapes. They are grown in the conventional way, i.e. they are not organically farmed and certified. The vine stocks are in a good condition regarding age and care. Overall, only ¼ of the harvest is made into wine by the winery itself; the rest is sold. Your grandfather never wanted to change the image of the winery and left the managerial and administrative task to a young and energetic wine-maker. Due to the not so well-known brand , the demand for the “Old Winery” wine is currently rather low. You do not intent to run the winery operatively, given your limited knowledge of wine making, but find the idea of owning a winery exciting. Your plan is to give the winery some fresh impetus.
4.4 5 1866
| Rating: (4.4 / 5.0)

You have inherited the “Old Winery” from your grandfather, a winery which has been family owned for five generations and can be dated back to the 16th century. Half of the eleven hectares are used to grow white grapes, the other half to grow red grapes. They are grown in the conventional way, i.e. ... Open whole case

Roland Berger Case: Onlinestar

Solved 48.4k times
Roland Berger Case: Onlinestar Onlinestar, an online retailer of furniture and garden products (core business), has grown significantly in recent years as a result of an expansion of its product portfolio. The company mainly imports goods from Chinese manufacturers but also operates its own production of cat lavatories (special business) in Eastern Europe. The company sells its goods via Amazon and ebay, and recently via an online shop on its website. Despite this development, the financial ratios have deteriorated in recent years. In particular, gross profit margin decreased significantly. Combined with a significant increase in shipping costs, this led to a negative result for the first time in the recently ended fiscal year and a resulting strained financial situation. Against the background of expected stagnating sales for the current financial year, short-term action is required. The board of Onlinestar asks you for an analysis of the reasons for the negative result as well as a derived recommendation for action. As a consultant, you should bring in your knowledge in online trading and develop solutions. In addition, the management board would like to receive a sales and gross profit plan from you for the current financial year.
4.3 5 1018
| Rating: (4.3 / 5.0)

Onlinestar, an online retailer of furniture and garden products (core business), has grown significantly in recent years as a result of an expansion of its product portfolio. The company mainly imports goods from Chinese manufacturers but also operates its own production of cat lavatories (special b ... Open whole case

Nutripremium

Solved 69.7k times
Nutripremium Nutripremium is a very well-known premium nutrition food company in Europe (€1 billion revenue last year). It is based in Spain and has an excellent market share not only in its home country but also in Portugal, France, Italy and Germany.  Nutripremium has two main lines of products: Vitamin-supplements for pregnant women Concentrated dehydrated aliments and vitamin pills for sick patients (with Diabetes or Cancer). The CEO of Nutripremium thinks that the market in Europe is starting to get saturated and wants you to analyze the Chinese market. What are the key areas you would explore to determine whether this is a good idea?
4.5 5 2244
| Rating: (4.5 / 5.0) |

Nutripremium is a very well-known premium nutrition food company in Europe (€1 billion revenue last year). It is based in Spain and has an excellent market share not only in its home country but also in Portugal, France, Italy and Germany. Nutripremium has two main lines of products: Vitamin-su ... Open whole case

Children vaccine

Solved 61.8k times
Children vaccine Beyer, one of the biggest pharmaceutical companies in the world, just invented a very reliable vaccine against Chickenpox, a disease that affects children in the age from 2 to 16 years. Beyer came to you wondering what their potential sales in Europe in the first year would be if they launched this product next year. They are only interested in the overall sales revenue as they already know that the vaccine can be sold for a profit. This is more meant to show them how big the volume they have to supply is and what the revenue would be.
4.4 5 2228
| Rating: (4.4 / 5.0) |

Beyer, one of the biggest pharmaceutical companies in the world, just invented a very reliable vaccine against Chickenpox, a disease that affects children in the age from 2 to 16 years. Beyer came to you wondering what their potential sales in Europe in the first year would be if they launched this ... Open whole case