Since the pandemic started in 2019, the hair industry has made a global impact of about 2.35 billion dollars. In 2020, there was a sharp decline, which, however, rose back to high demand in 2021. It is safe to predict that there will be a 4 billion dollar increase in market demand in 2022. Due to the pandemic, many fashionistas missed social gatherings and outings, and since outdoor meetings are now feasible, people are ready to get on track with their hairstyles.
There is a constant increase in the industry demand and supply due to unstable fashion trends, leading to more requests for artificial installations. Apart from fashion purposes, doctors encourage the use of quality hair products. According to hair experts, quality products help maintain hair density and prevent hair thinning without damaging the roots.
These are the topics we are going to discuss in this post.
- The hair industry market segment
- Challenges faced by the hair industry during the pandemic
- Role of manufacturing companies in the hair industry
- Popular businesses in the hair industry
- Incidents promoting the popularity of the hair industry
The Hair Industry Market Segment
The industry is a big one, encompassing several sectors. Typically, human hair extension, synthetic hair extension, and animal hair extension. The human hair extension sector is more popular than other segments. This is due to the fiber quality and the ability to blend with human’s natural hair. On the other hand, animal and synthetic hair extensions are highly resistant to rainy weather. Based on this, companies can also expect some significant growth in these segments.
Another segment of the industry is male and female products. Initially, the female users outnumbered the male users. With the increased incidences of baldness today, men take bold steps by using artificial hairs. Within the next decade, the male hair segment may be competing closely with the female hair segment.
To further elaborate the market segmentation, here is a list of product types, distribution channels, and famous regions supporting the industry.
Segmentation by channels of distribution:
- Specialty stores
- Online retailers
- Convenience stores
Segmentation by type of products
- Color retention kits
- Hair loss controller
- Hairstyling products
Segmentation based on top regional areas:
- Latin America
- North America
- The Middle East and Africa
- Asia Pacific
North America has the highest per capita income, with many manufacturing companies. After the United States, China is categorized as the second-largest hair extension consumer worldwide. The Asia Pacific is expected to hold its position for a long time because it has many plant-based products for makeup ingredients.
Challenges Faced by the Hair Industry During the Pandemic
Many hair companies closed business during the pandemic because of the restrictions in meeting channel partners. Many barbers and hairdressing salons closed during these times, reducing the rate of usage among consumers. However, it did not completely shut out beauty-related hygiene, as people cared for their indoor needs. Hence, products like beard shavers, extensions, and hair straighteners, sold regardless.
Despite the challenges from the pandemic, hair enthusiasts adopted the do-it-yourself (DIY) approach. Hence, online tutorials were prominent, and interested consumers ordered products from their favorite brands. As a result, DIY hair coloring was not entirely affected by the pandemic. However, a challenge that the industry faced was the side effects caused by the usage of specific products. Because many people were adapting DIYs to do their hair, most people would either use the wrong products or use them in the wrong way. Therefore, it is crucial for companies to enlighten their audiences on the usage of hair styling tools such as bands, straighteners, curlers, among others.
Role of Manufacturing Companies in the Hair Industry
Companies are starting to realize the need for premium items among consumers. Although the market is tight, you can easily win customers over with innovative items. More so, celebrities and artists placing high demand on colored hair create room for more creative opportunities in the industry.
The way production companies have been able to get the opinion of potential customers is by leveraging social media. They upload short hair videos and examine people’s comments. It is assumed that if many people on the internet dislike it, it may lead to short sales. More so, viewers have learned to trust production companies that make room for growth. Some of these companies also play a role in educating the audience on different styling techniques. Market experts believe potential customers are convinced of a product when they realize the available values. The results of these strategies reflect in the industry sales and popularity.
The efforts of manufacturing industries in producing silicone and sulfate-free hairs contribute to the high demand for artificial hairs globally. Instead of chemical products, leading companies use organic extracts such as cocoa butter, aloe vera, and natural oils. This also helps to reduce any skin cancer-associated risk. Although some factors hinder the adoption of hair attachments in certain areas, the rate has declined, unlike in previous years. For instance, some religious beliefs against hair extensions now realize the importance and accept that they complement the body’s beauty. Companies are more deliberate about customized products to reach a broad audience base.
The industry’s key players are; Procter & Gamble, Unilever, L’Oreal SA, KGaA, Henkel AG & Co., Amway, Oriflame, Shiseido, Johnson & Johnson Services, and others. These players are looking forward to owning larger shares in the industry. Hence, the hair industry is more competitive than ever.
Popular Businesses in the Hair Industry
People are more deliberate about the type of hair they wear and its source. Healthy hair is often proof of youthfulness, and people do not want to ignore that vital part of life. Thousands of women, and celebrities, never get tired of buying hair extensions. Over the past two decades, the hair industry has taken a new and better dimension, producing innovative and exciting products. However, these products get to the consumers through wholesalers or retailers’ businesses.
Since being a hair entrepreneur is the trending thing for new business owners, what sectors are people targeting?
Hairstylists are the direct fashion makers in the industry. They focus on transformation, depending on the customer’s needs. In the Hollywood industry, hairstylists are needed to make transformations, depending on the characters. This career option is blooming in the social sector, with high demand.
Hair Massage Therapist
A large percentage of U.S citizens request the service of a professional for hair treatment. Hair massage is a unique specialty from other body massages. Quality spas and salons assign trained personnel to take charge of the hair section during a massage. A thorough and detailed hair massage helps strengthen the hair roots, follicles and increases the rate of blood flow in the head.
Many people who work for long hours in the day end up with hair therapists to ease body stress. Hence, only certified individuals can take up the role. This is a lucrative job in this modern age, as research reveals that hair therapists earn up to 51% than hairstylists.
The Barber Shop
Undoubtedly, there is a high increase in men showing interest in artificial hairs. This can be attributed to the common bond men share at barbers shops. The longstanding trend in barbershops is to serve a community function. The black community often appreciates it as an avenue to share opinions and discuss rising issues. Hence, it has helped to promote social interactions. In the same way, it has served as an excellent spot to promote political campaigns indirectly. Businesses are recognizing the advantage of situating an exquisite barbershop in highbrow areas.
Hair modeling is a crucial part of the beauty industry. It is one of the reasons why it is so popular today. Beauty and style magazines use quality hair on pretty faces as the front cover to entice users to read the other information present in the magazine. Although this goal is often achieved, it goes beyond that. It is always fortunate for any company to showcase its products on popular magazines’ front covers. It means more publicity for the product, likely yielding high sales.
Incidents Promoting the Popularity of Hair Industry
Unfortunately, more diseases are evolving in the world today. Many of them lead to hair loss, which in turn causes many people to seek alternative ways of covering their heads. On the other hand, some hair treatment products, such as lousy shampoo, are responsible for hair Alopecia. The industry needs more agencies that will monitor the production of hair products, especially ones with significant ingredients as chemicals. The aged population is also responsible for the broad demand for hair extensions. According to the United Nations Department of Economics and Social Affairs, people who are 65 and above largely contributed to the market growth experienced in 2020.
In Asia, many people face hair loss due to environmental pollution. Pollutants like fossil fuel containing carbon monoxide are toxic enough to damage human hair. Unfortunately, the death rate in the continent keeps increasing; artificial hair is how they make up for fashion. This pushed for the high demand for hair in this region. In the U.S and Canada, the hair industry blooms due to a positive effect where more and more women value quality hair over cheap hair.
Celebrities and fashionistas promoting premium products on European fashion shows, such as AltaRomAltaModa, Paris Fashion Week, and Milano Moda Main, are attractive to beauty brands. These celebrities promote these products on social media, which in turn appeal to young women audiences. Nowadays, many ladies shop online, so it is almost impossible not to encounter a hair advertisement from these celebrities. According to the Italian Cosmetics Association record, there was a 3.2% increase in online sales of hair styling products.
Despite the massive growth of the hair industry, there seems to be a wastage of some hair products. This is why companies are targeting recycling procedures that ensure some reusable items do not go to waste. This will also affect the price of hair extensions in that they will reduce. Hence, more people will afford artificial hairs, directly promoting the industry sales. Manufacturers also keep introducing organic products packaged with eco-friendly materials to attract more customers.