The global hair wigs and extensions market is worth over $5.8 billion and it is projected to reach $13 billion by the end of 2026 with an annual growth rate of 13%.
China leads as the supplier when it comes to human hair wigs and extensions and it is North America that dominates the global market share with 40% as of 2020. North America is expected to alone spend $5 billion on this segment by 2026.
The primary customer base for this industry are African and Caucasian descents. During the pandemic year it was discovered that most customers belong to the age group between 35 to 45, and hold the largest market share in North America. While 45 to 54 age groups contribute approximately 22%.
Customers above 54 years are the second highest contributor with nearly 23% of market share in 2020.
The main contributing factors that will lead the growth of this industry other than rise in middle income groups, fashion trends and grooming purposes is the rise in hair fall rates amongst people of all age groups.
We see huge demand for wigs and extensions mainly because they are an easier and cheaper option available compared to hair transplant options and growing awareness about chemicals used in hair relaxers and growth products are contributing factors.
Average price for synthetic wigs and extensions is much lower than actual human hair, this cost efficiency is what drives growth.
The global hair extension market is expected to race beyond the $7 billion earning mark by the end of 2026. The major reason is celebrities. Famous personalities like models and social media influencers who choose to wear hair wigs and extensions endorse them have caused somewhat of a ripple effect among commoners.
The pandemic year came as a blessing in disguise for this segment. In 2020, online sales of hair wigs and extensions accounted for approximately 63% of the total sales in the global market.
The Asia Pacific nations majorly China, Japan and India along with Latin America are few of the fastest growing nations in this segment that will see a surge in demand in the coming years for such products due to the rapid rise in influencers and fashion icons, thus eventually capturing a larger market share.