Hair extension market is anticipated to grow at a CAGR of 5.3 % during the forecast period (2024-2031). The hair extension market is expanding owing to factors such as fashion trends, technological advancements, celebrity endorsements, and easy availability of customization options. Professional salon services, cultural acceptance, and innovative marketing strategies are major contributors to global market growth. These factors provide consumers with versatile options, enhance quality, and expand the customer base.

Market Dynamics

Increasing prevalence of hair-related conditions

The growing recognition of hair-related conditions, including alopecia, is a significant factor propelling the expansion of the hair wig industry. As individuals become more aware and attentive to these conditions, the demand for hair wigs as a solution is increasing, thereby driving the growth of the industry. According to the National Alopecia Areata Foundation (NAAF), in 2023 Alopecia areata affects a significant number of individuals, with approximately 6.7 million individuals in the US and 160 million people worldwide either having or developing the condition. The onset of alopecia areata can occur at any age, although it commonly begins early in life, with over 80.0% of individuals showing signs before the age of 40 and 40.0% experiencing symptoms by age 20. Research suggests that women may have a slightly higher likelihood of developing alopecia areata compared to men, and certain races and ethnicities, including Asian, Black, and Hispanic individuals, may have a higher chance of developing the disease based on several US-based studies.

Influence of Social Media and Celebrity Endorsements

The popularity of hair extensions is greatly influenced by the widespread use of social media and the endorsement of celebrities. This exposure leads to an increased interest in adopting similar hairstyles among followers, which in turn drives the growth of the hair extensions market. For instance, in June 2024, Nish Hair launched its first celebrity hair extension collection, featuring Priyanka Borkar. The collaboration marks India's first collaboration between a celebrity stylist and an extensions brand, aiming to provide users with fun, style, and versatility options for confident extension exploration. 

Market Segmentation

• Based on hair type, the market is segmented into human hair, animal hair, and synthetic hair.

• Based on application, the market is segmented into fusion & pre-bonded, tap-in, and clip-in.

• Based on the distribution channel, the market is segmented into online, and offline.

Online Holds a Considerable Market Share

E-commerce's growth in the US has significantly influenced the hair extension market, offering convenience and a wide variety of products, thereby solidifying the increased sales of hair extensions online. According to the Census Bureau of the Department of Commerce, in May 2024, it reported a 2.1% increase in U. retail e-commerce sales for Q1 2024, with an estimated $289.2 billion, compared to $1,820.0 billion in Q4 2023. E-commerce sales increased 8.6%, while total retail sales increased 1.5%. E-commerce sales accounted for 15.9% of total sales.

Clip-in Holds a Considerable Market Share

The growing demand for personalized hair styling solutions is driving the growth of customizable hair extensions, with new shade introductions aiming to meet diverse customer demands. For instance, in October 2023, Bellami Hair introduced five new exclusive shades of its Silk Seam clip-in hair extensions, showcasing a modern, edgy, and fashion-forward aesthetic. The collection includes Bronzed Amber, Dark Maple Brown, Dirty Brunette, Vanilla Latte, and Dark Honey Cocoa, offering a perfect match for everyone.

Regional Outlook

The global hair extension market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America). 

Sustainability and Ethical Sourcing Growth In Asia-Pacific Region

Ethical sourcing practices are gaining popularity owing to increased consumer awareness and demand for sustainable products, that resonate with environmentally and socially conscious consumers, influencing the purchasing decisions. For instance, in May 2024, Private Label launched its Raw Indian Hair collection, offering a wide range of high-quality, affordable hair extensions. The collection, sourced ethically from Southeast India's temples, includes bundles, closures, frontals, bulk human hair for braiding, and clip-in extensions. The collection aims to meet the growing demand for ethical hair extensions.

Global Hair Extension Market Growth by Region 2024-2031

North America Holds Major Market Share

The significant presence of major professional salons across the region is a key factor driving the regional market growth. Professional salons play a significant role in establishing customer trust and loyalty, leading to increased sales and positive recommendations. According to SBDCNet.org, in March 2024, the hair care services industry operates hair salons and barber shops. Key players in the market include Regis Salons, Sport Clips, Klier, and Stefan Hair Fashions. The industry's growth is driven by expanding middle classes in developing nations and shifting cultural norms. The US has approximately 84,000 establishments, generating a combined annual revenue of around $25.0 billion. The main sources of revenue are haircutting, hair coloring, nail care, skin care, and merchandise sales, with haircut and styling services being the largest contributor.

Market Players Outlook

*Note: Major Players Sorted in No Particular Order.

The major companies serving the hair extension market include Aderans Co., Ltd., Godrej Consumer Products Ltd., Racoon International, Babe Hair Extensions, and Mayvenn, Inc. among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers and acquisitions to stay competitive in the market. For instance, in July 2023, Bellami launched a professional-grade hair extension care collection, designed to double the lifetime of hair extensions and protect customer investments. The collection, developed in collaboration with hair stylists, is intended for both in-salon and at-home use.

The Report Covers-

• Market value data analysis of 2023 and forecast to 2031.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global hair extension market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.