Alopecia Market

Market Overview

The global alopecia market size was valued at USD 8,869.23 million in 2022. It is estimated to reach USD 17,582.12 million by 2031, growing at a CAGR of 7.9% during the forecast period (2023–2031).

Alopecia areata (spot baldness) is a medical disorder in which all or partial body parts lose their hair. It frequently causes a few bald spots on people's scalps, which are the size of a penny. In rare instances, the entire head or body's hair may fall out permanently. A breach in the immunological privilege of the hair follicles can cause alopecia areata, an autoimmune illness. A family history of the same disease is one risk factor for alopecia. Even though there is currently no recognized treatment for the condition, numerous drugs are being investigated to encourage regeneration, including cortisone injections, sunscreen to protect the afflicted area from the sun and cold, and eyewear if the eyelashes have been lost or injured.

Another kind of androgenetic alopecia, male-pattern baldness in men, is widespread in both sexes. The 'M'-shaped hairline foam characteristic usually progresses to partial or complete baldness. Men with certain medical disorders, such as coronary heart disease, prostate enlargement, hypertension, and many others, are more likely to develop androgenetic alopecia.

Highlights

• Alopecia Areata dominates the technology type segment
• Pharmaceuticals dominate the treatment segment
• Dermatology clinics dominate the end-user segment
• North America is the highest shareholder in the global market

Market Dynamics

Market Drivers

Increasing Global Prevalence of Alopecia

The growing prevalence of alopecia is one of the crucial factors driving market growth. According to data published by the American Hair Loss Association, over 95% of hair loss in men is caused due to androgenetic alopecia. The occurrence of hair loss in men increases proportionately with age. Based on the report published by the International Society of Hair Restoration Surgery, it was estimated that nearly 40% of men encounter some degree of hair loss by 35 years of age, 65% at 60 years, 70% at 80 years, and 80% at the age of 85.

Additionally, the prevalence of alopecia is increasing in most countries due to changing lifestyles, such as increased consumption of alcohol and tobacco; changing food habits, such as more junk food intake; high-stress levels; and an increasing geriatric population. In the U.S. alone, around 50 million men and 30 million women were estimated to be affected by alopecia in 2018, according to the American Academy of Dermatology Association (AAD). These factors are expected to boost the global alopecia market over the forecast period.

Increasing Global Healthcare Expenditure

Healthcare expenditure is increasing globally at an exponential rate. Major countries in North America, Asia-Pacific, Latin American, and European regions are witnessing a significant increase in per capita healthcare expenditure. According to the National Expenditure Projection 2014–2024, healthcare expenditure in the U.S. is expected to grow at an average rate of 5.8% per year. Key factors responsible for increased healthcare expenditure include growing consumer disposable income and rising emphasis on aesthetic appearance. In addition, rapid economic growth in developing countries and increased initiatives undertaken by organizations, such as the National Alopecia Areata Foundation and American Hair Loss Association, for spreading awareness about alopecia and available treatment options are leading to an increase in healthcare expenditure. The rapidly increasing geriatric population is further responsible for escalating healthcare expenditure, thereby boosting the market.

Market Restraint

Increasing Adoption of Substitutes

The increasing adoption of substitutes, such as traditional medicines—Ayurvedic, Chinese, and herbal medications —may hamper the growth of the alopecia market. On the basis of results from the GlaxoSmithKline plc sponsored survey, around 22.7% of the patients took Chinese medications for treating male androgenetic alopecia in South Korea, followed by Taiwan with 22.0% of patients. From the total sample size in South Korea, around 56.0% of the patients reported the use of herbal medications in 2017, followed by Mexico and Brazil, with 37.2% and 33.2%, respectively. Furthermore, due to technological advancements in healthcare facilities, people opt for surgical procedures, such as surgical hair restoration, owing to advantages such as minimal downtime and cost-effectiveness in the long run. As a result, the expansion of the alopecia market has been hampered.

Market Opportunities

Technological Advancements in Alopecia Treatment

One of the main factors driving this market is technological progress in alopecia therapy. Rogaine and Propecia are the two FDA-approved treatments for alopecia. As both medications' patents expired, generics have become more widely available. However, the impending launch of several promising pipeline candidates, such as Jakafi (ruxolitinib), Xeljanz (tofacitinib), Breezula (clascoterone), Lumigan (Bimatoprost), and SM04554, is expected to drive the growth of alopecia market shortly significantly.

Additionally, critical generic players focus on developing advanced products that help enhance patient compliance to address unmet medical needs. For instance, branded drugs, such as Avodart, are available in soft gelatin capsules that stick inside the throat or mouth while swallowing, resulting in an unpleasant experience for the consumer. In March 2018, JW Pharmaceutical introduced the first tablet formulation of dutasteride by utilizing the Self-Micro Emulsifying Drug Delivery System (SMEDDS). This technology enhances the dissolution quotient of insoluble ingredients for faster absorption. Technological advancements also include introducing a low-level laser therapy that helps stimulate hair growth. Likewise, introducing several laser combs and hair massagers or brushes also creates opportunities for the market players to grow.

Regional Analysis

Based on region, the global alopecia market is bifurcated into North America, Europe, Asia-Pacific, Central and South America, and the Middle East and Africa.

North America Dominates the Global Market

North America is the most significant shareholder in the global alopecia market and is expected to grow at a CAGR of 7.0% over the forecast period. A high disease prevalence, rising consumer awareness, proactive government measures, technological advancements, and improvements in healthcare infrastructure drive the North American market. The main drivers for the region's growth are the launch of novel pharmaceuticals and beneficial initiatives performed by pertinent organizations. The existence of numerous participants, significant market participants, and the accessibility of sizeable investments are all factors that will support market expansion. Furthermore, the region is seeing more people receiving laser-based treatments to treat alopecia. The United States dominates the market because of its highly developed healthcare sector, sizable elderly population, and high healthcare spending. In addition, the National Alopecia Areata Foundation (NAAF), the Canadian Alopecia Areata Foundation, and other government and non-profit organizations that establish recommendations and raise public awareness will favorably affect the market.

Europe is anticipated to grow at a CAGR of 7.9% over the forecast period. The European market is expected to expand significantly over the projected period as a result of technological advances and private and public awareness initiatives. For instance, the European Hair Research Society is essential in conducting studies on hair loss and spreading awareness of effective treatments for the condition. Most men and women of the European race, aged 70 or older, are affected by androgenetic alopecia (AGA), the most prevalent cause of hair loss in Europe. Moreover, the increasing prevalence of chronic diseases indirectly drives market growth as the treatment regimens of many diseases result in hair loss. However, the growing trend of hair restoration using surgical methods may restrain market growth in the region.

In 2019, 106,949 surgical hair restoration treatments were performed in Europe, a 35% increase over 2016, according to research by the International Society of Hair Restoration Surgery (ISHRS). Increasing healthcare expenditure, supported by developed healthcare facilities, is driving the alopecia market in Europe. Furthermore, expanded alopecia therapy research and development efforts are anticipated to fuel market revenue growth in Europe. For instance, on September 10, 2021, Cassiopea SpA, an Italian pharmaceutical company working to develop and prepare commercialized prescription drugs with novel mechanisms of action to address chronic as well as urgent dermatological conditions, released the topline findings of its phase II Proof of Concept trial examining clascoterone solution for the treatment of androgenetic alopecia in females.

Asia-Pacific is estimated to show the highest growth in the market due to increased penetration of alopecia products, rising disposable income, and growing consumer awareness. Enhancing the healthcare regulatory environment in emerging nations is anticipated to draw foreign investors and open up new business opportunities. For instance, China's regulatory body, the China Food and Drug Administration, authorized the iGrow laser system by Apira Science in 2016, making it the country's first-ever laser-based hair growth technology.

In addition, the growth in the region is attributable to the prevalence of chronic diseases, expanding partnerships among major market participants for the development of sophisticated treatment solutions, increased awareness, particularly among the younger population, and an increase in disposable money. For instance, TAGCyx Biotechnologies Inc. and CAGE Bio Inc. signed a license agreement on September 16, 2022, to develop TAGX-0003, a DNA aptamer drug for treating vitiligo and alopecia areata in dermatology. CAGE Bio Inc. is a biotechnology company that develops novel inflammation, infection, and immunology therapies.

Segmental Analysis

The global alopecia market is bifurcated into disease type, treatment, gender, sales channels, and end-user.

Based on disease type, the global market is divided into alopecia areata, cicatricial alopecia, traction alopecia, alopecia totalis, alopecia universalis, androgenetic alopecia, and others. 

The alopecia areata segment is the highest contributor to the market share and is expected to grow at a CAGR of 7.1% over the forecast period. Alopecia Areata (AA) is an autoimmune skin disease characterized by hair loss on the scalp, face, and other body areas. Hair loss generally occurs in round patches. The main objective of alopecia areata treatment is to block the immune system attack and promote hair regrowth. Currently, there are no approved treatments for alopecia areata. The most commonly prescribed off-label drugs to treat alopecia areata include topical cream and ointments of corticosteroids, minoxidil lotion, oral therapies, and immunotherapy. The segment is anticipated to grow significantly over the forecast period due to product development and launches.

Based on treatment, the global market is segmented into pharmaceuticals and devices. 

The pharmaceuticals segment owns the highest alopecia market share and is expected to grow at a CAGR of 7.9% over the forecast period. Pharmaceuticals are the most crucial treatment for hair loss and hold the largest market share by revenue. Treatments are available in prescription and over-the-counter (OTC) formats, including topical, oral, and injectable drug molecules. A few molecules widely dominate the market. However, alopecia has a strong and promising pipeline, expected to propel market growth over the forecast period.

Based on gender, the global market is divided into males and females. 

The male segment is the highest contributor to the market and is anticipated to grow at a CAGR of 7.0% over the forecast period. The class of male hormones, androgens, is one of the significant reasons for androgenetic alopecia among males. The onset of this type of alopecia is noted after puberty when there is sufficient testosterone in men, which converts to DHT inhibitors that initially result in thinning hair follicles and eventually lead to hair loss. Furthermore, awareness of hair fall and trends in medical and surgical treatments for hair restoration procedures are also increasing among men. However, adopting hair restoration procedures and traditional medicines may negatively impact market growth.

Based on sales channels, the global market is divided into prescription and OTC. 

The prescription segment owns the highest market share and is estimated to grow at a CAGR of 7.5% over the forecast period. The demand for prescription medications for hair loss is expected to expand soon, driven by a strong product pipeline, growing disposable income, and rising adoption of unhealthy lifestyles, resulting in chronic diseases such as cancer, PCOS, and diabetes, which are associated with alopecia. Some of the commonly prescribed hair loss medications are corticosteroids, minoxidil, and finasteride.

Based on the end-user, the global market is bifurcated into homecare settings and dermatology clinics. 

The dermatology clinics segment is the highest contributor to the market and is expected to grow at a CAGR of 6.9% during the forecast period. Dermatology clinics are expected to continue growing over the forecast period owing to the increased consumer awareness regarding prescription medicines and modern treatments such as laser technology coupled with a strong product pipeline. Patients visit dermatology clinics as several types of hair loss conditions can be treated with a combination of medicines. In addition, surgical treatments are also performed at these clinics if therapies prove to be inefficacious for patients.

Recent Developments

• January 2023- Sun Pharmaceutical invested USD 576 million to purchase Concert Pharmaceuticals and its JAK inhibitor, which might be competitive with Eli Lilly's approved alopecia treatment.

• June 2022- Eli Lilly and Company and Incyte revealed that the U.S. Food and Drug Administration (FDA) had approved OLUMIANT® (baricitinib), a once-daily pill, as the first-in-disease systemic treatment for adults with severe alopecia areata (AA). The drug is available in 4-mg, 2-mg, and 1-mg tablets.