Published on: December 05, 2019
The global hair market includes the sales of products or fashion accessories that are manufactured using human or synthetic hair. We have categorized the hair market as a part of the overall personal products market. The personal products market covers manufacturers of personal and beauty care products, including cosmetics and perfumes.
The growing emphasis on omnichannel retail and increasing number of strategic collaborations between market participants are a few of the major trends in the market which are expected to drive the demand for hair market during the forecast period.
Based on type, the human hair market had the dominating market share with respect to synthetic market share. The human hair is highly popular owing to its better product quality and longevity compared with synthetic hair wigs and extensions. Human hair wigs and extensions are generally priced higher than synthetic hair wigs and extensions due to the former’s higher production cost and the difficulty in procuring human hair.
Based on geography, the North American region has the dominating market share in the global hair market. The US has been a key contributor to the hair wigs and extension market in the Americas. The demand for human hair wigs and extensions in the US in 2018 was predominantly from consumers of African descent. Owing to their naturally curly hair that grows denser and at a slower rate compared with other hair types, these consumers generally prefer purchasing hair wigs and extensions rather than repeatedly undergoing long and tedious hair straightening and styling processes.
The global hair market can be segmented into the following:
Many factors are expected to drive growth in the hair market systems market during the forecast period. Our analysis identifies the following factors to be driving the growth in the hair market:
Technological advances in wig production and design have been key to the growth in demand for wig and hair extensions which is driving the growth of the hair market. With advanced fiber selection and design, these wigs are lighter and can be styled using heating styling tools, thereby offering better manoeuvrability to the user. Moreover, synthetic hair wigs and extensions offer comparable longevity and natural texture to human hair wigs and extensions. Several wig manufacturers such as Godrej Consumer Products and Aderans provide wigs that offer superior comfort in use, can be customized as per a user’s requirements, and provide utmost manoeuvrability.
The adoption of hair wigs and extensions by an increasing number of celebrities in mainstream entertainment and media industries has driven the demand for unique and fashionable hair goods. Owing to the wide outreach of social media platforms such as Twitter and Instagram, consumers active in these platforms are becoming increasingly aware and conscious about appearance and style. Apart from the functionality aspect of hair wigs and extensions, consumers globally are increasingly opting for hair goods as fashion accessories.
There has been increasing consumer demand for premium human hair wigs and extensions, especially in developed economies such as the US, the UK, and France. Human hair wigs and extensions produced using virgin Caucasian hair have high demand in North America and Europe. However, these regions face constraints related to the sourcing of virgin hair. Hence, virgin human hair is imported from countries such as China and India and is color-treated to replicate Caucasian hair. Owing to factors such as durability, ease of styling and maintenance, and better quality, consumers in North America and Europe primarily prefer human hair goods rather than synthetic composites.
Meanwhile, the vendors operating in the market face numerous challenges in increasing their sales and improving profitability. Some of those challenges are:
Countries such as the UK and the US have witnessed a decline in the number of handwoven wig manufacturers over the last few years owing to the lack of experienced personnel and high labor costs. The production of a hair wig involves a high degree of craftsmanship as most custom-made wigs are hand-tied. The production of a synthetic full lace wig takes anywhere between 40-120 working hours for completion, based on wig complexity. Additionally, higher density wigs require comparatively more time due to the knotting of more hair on the lace cap.
With manufacturers heavily dependent on human hair and synthetic fiber suppliers for the production of hair wigs and extensions, new market entrants increasingly face sourcing and procurement difficulties for quality raw materials. Established manufacturers generally enter into long-term agreements with suppliers and resort to bulk purchase and stocking to ensure the adequate availability of raw material. Additionally, the high investment capabilities toward the development of production facilities and R&D activities and brand value enable established manufacturers to develop a highly diverse product portfolio to target a large customer base. These factors further make it difficult for new market entrants to enter the global hair wigs and extensions market.
Our reports on the global hair market cover several large and small vendors active in the market including Aderans Co. Ltd., Artnature Inc., Evergreen Products Group Ltd., Godrej Consumer Products Ltd. and Rebecca. Partnerships and sales through multiple channels are some of the strategies adopted by the manufacturers in the global hair market.
Following are a few of the major developments in the market:
Backed with competitive intelligence and benchmarking, our hair market research report is designed to provide entry support, customer and M&A assessment, as well as go-to-market strategy support.
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