Hair Restoration Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
The hair restoration market was valued at USD 9,255 million and is expected to reach USD 12,019 million, by registering a CAGR of nearly 4.5% during the forecast period.
The ongoing COVID-19 pandemic has affected the hair restoration business to a larger extent owing to the lack of preference for non-emergent surgical procedures among the population. Various regulatory bodies across the world have also recommended the surgeons to avoid all kinds of non-emergent surgical procedures due to the high risk of infection. Hence, considering the unprecedented impact of COVID-19 on the hair restoration market, it is evident that the market will experience a slightly negative impact in the foreseeable future.
The key factors propelling the growth of the hair restoration market are the increasing popularity of hair transplants and the increasing prevalence of various forms of dermatological disorders leading to hair loss. As per the report published by Hair Society reports, over 35 million men and 21 million women suffer from alopecia or hair loss worldwide. Of these, over 650,000 of them undergo hair transplants as the most effective treatment option annually. This increase in the prevalence of hair loss among the population is the major reason giving rise to hair transplantation surgery. The International Society of Hair Restoration Surgery (ISHRS) estimated that 735,312 hair restorations procedures were performed worldwide in 2019. This number represented an overall increase of 16 % from 2016, it that year, 635,189 hair transplantation procedures was tallied globally. The data suggested that larrge number of people are going for hair restoration procedures across the world, resulting in the growth of the hair restoration market.
In addition, technological advancements in hair transplant devices are also increasing the success rate of these procedures and boosting the demand for these procedures. For instance, in March 2018, Restoration Robotics, Inc. received the United States Food and Drug Administration (FDA) 510(k) clearance to expand the ARTAS technology to include implantation. The introduction of these novel technology has reduced maximum errors and increased the success rate of the treatment, and thereby driving the market growth. However, cost constraints and high post-surgery care along with adverse side effects are the factors that can hamper the market growth.
The scalp segment of the hair restoration market is anticipated to account for the major market share over the forecast period. The target population for this segment includes men suffering from pattern baldness, women with thinning hair, and victims of the scalp or burn injury.
According to the survey conducted by the International Society of Hair Restoration Surgery (ISHR) in 2017, the scalp was the most common donor harvest site accounted for 93.7%, followed by the beard (6.4%) and chest (3.2%). Owing to the surging hair loss problem across the world and increasing awareness of people about their appearance, the demand for scalp hair treatment has been increased. The ISHR has also stated that scalp treatment is the most common hair restoration treatment.
Owing to the gaining popularity of the scalp treatment segment, the market players are also strategizing to increase their market share and are coming up with innovative products and seeking approvals. For instance, In March 2018, Restoration Robotics, Inc. received the US Food and Drug Administration 510(k) clearance to expand the ARTAS technology to include implantation into thinning areas on the scalp. Also, earlier in February 2018, Venus Concept Ltd., acquired NeoGraft Solutions' hair restoration business to expand the customer base of the company in scalp treatment. Hence, considering the factors mentioned above the scalp segment is forecasted to have lucrative growth in the future.
North America upholds the maximum market share of the hair restoration market, with the presence of a large target population base in this region. As per the International Society of Hair Restoration Surgery in 2019, the United States/Canada accounted for 182,025 surgical hair restoration procedures, whereas in 2016 these countries accounted for 140,991 surgical hair restoration procedures. This data shows an increase of 29% in surgical procedures from 2016 to 2019, and how the acceptance is increasing in the population of North America regarding the hair restoration procedure.
Also, according to the National Alopecia Areata Foundation, alopecia areata which is one of the common autoimmune dermatological diseases, that causes hair loss, affects 6.8 million in the United States with a lifetime risk of 2.1%. in 2018. In addition, increasing celebrity and media influences, and growing awareness regarding one's appearance coupled with high income, and growing word of mouth are the potential drivers for the North American hair restoration services market growth.
The rising number of hair transplant surgeries and the presence of a large player base in this region is also, giving rise to the number of product launches and expansion in the market. For instance, In March 2018, Lexington International, LLC, a US-based manufacturer and developer of advanced phototherapy medical devices received an ANVISA approval for HairMax Laser devices (HairMax LaserBand 82 and the Prima 7, Ultima 9, and Ultima 12 LaserComb) to market for the treatment of hereditary hair loss in Brazil. Hence, owing to all the aforementioned factors market is projected to grow exponentially.
The hair restoration services market is highly competitive. With technological advancements, some mid-size to smaller companies are increasing their market presence by introducing new products at low prices. Some of the major players for this market are Restoration Robotics, Venus Concept, Igrow, and Theradome.