Hair Restoration Market

Market Overview

The global hair restoration market size was valued at USD 6.12 billion in 2022. It is estimated to reach USD 11.96 billion by 2031, growing at a CAGR of 7.73% during the forecast period (2023–2031). The changing lifestyles of people worldwide have led to an increase in dermatological disorders, further driving the number of individuals suffering from hair loss and boosting the market's expansion. Moreover, hair restoration is a very popular method for hair loss treatment, further fueling market growth.

Hair restoration is a surgical procedure that transfers hair follicles to the 'recipient site,' a bald or balding body area from the 'donor site.' The technique is primarily utilized to treat male pattern baldness. Genetically resistant hair follicles, such as those from the back of the head, are transplanted to the bald scalp in this minimally invasive treatment.

Hair transplantation can fill in scars from accidents or procedures, such as facelifts and prior hair transplants, in addition to restoring eyelashes, eyebrows, beard hair, chest hair, and pubic hair. Hair transplantation is distinct from skin grafting in that these grafts have nearly all of the epidermis and dermis covering the hair follicle, and numerous tiny grafts are transplanted instead of a single strip of skin.

Market Dynamics

Global Hair Restoration Market Drivers

Increasing Popularity of Hair Restoration

The hair restoration market growth can be attributed to the benefits of hair transplantation and the rising demand for the same during the forecast period. According to a survey by the International Society of Hair Restoration Surgery (ISHRS) in June 2022, the worldwide exploration volume of surgical hair restoration procedures performed in 2021 was 703,183. As hair transplantation is the most common treatment, increasing the number of patients opting for hair restoration may also increase the demand for hair transplantation procedures, contributing to the market's growth.

Increasing Prevalence of Various Forms of Dermatological Disorders Leading to Hair Loss

The surging prevalence of various dermatological disorders leading to hair loss among the global population is also a major driving factor for the market's growth. There are three kinds of hair loss: anagen effluvium, telogen effluvium, and androgenetic alopecia. Such dermatological disorders are expected to boost the market growth during the forecast period.

According to the January 2021 article "24 Hair Loss Statistics and Facts for a More Confident 2022," androgenetic alopecia accounts for approximately 95% of male hair loss. By the time they reach the age of 50, approximately fifty percent of all women experience hair loss. According to statistics on female hair loss, 29% of women with hair loss reported two significant depressive symptoms. Such prevalence of hair loss issues among the global population is expected to drive the market's growth.

Global Hair Restoration Market Restraint

Cost Constraints

The growing popularity of various technologically advanced hair restoration procedures and self-consciousness among the population across the globe are expected to increase the demand. However, the major restraint is cost constraints, which are expected to restrict the market's growth.

The studies suggest that the limitations of hair restoration procedures are expected to limit the market's growth during the forecast period. For instance, as per the article 'Hair transplants: what to expect' published in December 2021, the cost of a hair transplant will depend largely on the amount of hair the patient requires to be moving, but it generally ranges from USD 4,000 to USD 15,000. It is typically not covered by insurance. Such a high-cost burden on the patients opting for hair restoration is expected to limit the market's growth.

Global Hair Restoration Market Opportunities

Technological Advancements

Globally, technological advances in hair transplant devices and the introduction of new services are anticipated to impact the hair transplant market and stimulate its expansion substantially. For instance, HHC (Hermest Hair Clinic) introduced a novel and cost-effective follicular unit extraction (FUE) method service for hair transplants in Turkey in April 2022.

Similarly, in March 2023, Venus Concept Inc., a global leader in medical aesthetic technology, announced today the introduction of its latest generation of ARTAS iX, which is now widely available to hair transplantation specialists worldwide. With cutting-edge robotics, machine vision, artificial intelligence, and machine learning technologies, its most recent generation of ARTAS iX establishes a new benchmark for hair transplantation. Such developments are expected to create opportunities for the vendors operating in the market.

Regional Analysis

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

North America Dominates the Global Market

North America is the most significant global hair restoration market shareholder and is anticipated to exhibit a CAGR of 6.81% during the forecast period. North America's huge target population and technologically equipped clinics are expected to contribute significantly to the region's hair restoration market share. Only 149,254 hair transplants were conducted in North America in 2021, a 22% drop from the previous year due to the limits imposed by the COVID-19 epidemic. As a result of the removal of restrictions, the number of hair transplants increased in 2022, thereby driving the hair restoration market growth.

The increase in hair transplant surgeries and the presence of various market participants in the region also contribute to the rise in product launches and market expansions. For instance, Stemson Therapeutics received a USD 15 million Series A financing led by DCVC Bio in July 2021 to advance the development of Stemson's proprietary therapeutic solution to treat hair loss. During the forecast period, funding is anticipated to increase technological advancements in products and demand for hair restoration products and services in the North American region.

Asia-Pacific is predicted to exhibit a CAGR of 10.06% over the forecast period. Asia-Pacific is expected to exhibit the quickest growth rate. The major aspects fueling market growth in the country are the increasing burden of hair loss and awareness of hair restoration treatment. In addition, there is a growing focus on research and development of effective therapies and technological advancements. As per a 2019 study titled 'Efficacy of Scalp Cooling in Preventing and Recovering from Chemotherapy-Induced Alopecia in Breast Cancer Patients: The HOPE Study,' The study aimed to assess the efficacy of the Paxman scalp cooling (SC) system in preventing chemotherapy-induced alopecia in Japanese breast cancer patients. Overall, scalp cooling resulted in faster recovery of hair volume after chemotherapy. Such developments are projected to create opportunities for the vendors operating in the regional market.

The European region is expected to develop significantly due to the surging rate of alopecia. For instance, in February 2020, an article published titled, Alopecia statistics in Spain and the European countries: UK, Italy, France, Germany, stated that Germany had an alopecia rate of 41.24% of the total population. Such a higher rate in the current population is expected to increase the demand for hair restoration in the country, which would increase market growth in the future. The development of the European market can also be attributed to the partnership between market players and the introduction of new products. For instance, in August 2019, HairClone, an established and licensed UK tissue bank, received regulatory approval to begin hair follicle cryopreservation and banking. In this procedure, a few of the banked follicles would be carefully thawed, the relevant cells would be multiplied (cloned), and they would be transported back to the surgery and implanted back into the scalp utilizing a series of tiny injections. Hence, such innovations would increase the market growth in the region.

In the Middle East and Africa, factors such as the growing burden of hair loss and increasing focus on R&D activities will push market growth. A December 2020 Qatar-based study, titled 'Platelet-Rich Plasma for Androgenetic Alopecia (AA) in Women: A Single-Center Case Series Study in Qatar' demonstrated the efficacy and safety of PRP injections in treating AA in women who received six treatment sessions with an inter-treatment interval of 4–6 weeks and may provide a viable alternative to existing treatment options of AA. Such developments are expected to drive the regional market growth.

Segmental Analysis

The global hair restoration market is segmented by recipient area, treatment, and end-user.

Based on recipient area, the global hair restoration market is bifurcated into scalp and non-scalp segments. 

The scalp segment dominates the global market and is projected to exhibit a CAGR of 8.09% over the forecast period. The surgeon uses a needle or blade to make small holes in the scalp where hair will be transplanted. The surgeon inserts hairs from the removed piece of scalp into the puncture holes, which is called grafting. In the meantime, the surgical sites are enveloped with bandages or gauze. According to Medi Hair 2022, more than 80% of men and 25% of women suffer from genetic hair loss. In addition, the number of people affected is increasing from generation to generation. By 50 years of age, about 85% of men are balding, as per the American Hair Loss Association (AHLA), 2020. With this high burden of baldness, the segment is expected to boost its segment growth.

The non-scalp region consists of eyelashes, eyebrows, facial, and chest hair, among others. In an eyebrow transplant, hair grafts (plugs) are moved to the brow region for cosmetic purposes. The goal is that new hair grows from these grafts, producing a fuller look. Eyebrow hair grafts are taken from inches above your ears. A surgeon also transplants the hair follicles in addition to the individual hairs. In addition, surgery to transplant eyelashes is another way to enhance the appearance of sparse lashes. This procedure offers more long-lasting results than lifts and extensions. According to the cost of an FUE (Follicular Unit Extraction), hair transplantation to the eyelashes or eyelashes can start from USD 2,999, depending on the number of single hair follicular unit extraction grafts required to restore the eyelash or eyelashes.

Based on treatment, the global hair restoration market is divided into Follicular Unit Extraction (FUE), Follicular Unit Transplant (FUT), stem cell therapy, laser therapy, and other treatments. 

The Follicular Unit Extraction (FUE) segment is the biggest revenue contributor to the market and is predicted to exhibit a CAGR of 7.73% over the forecast period. The FUE is considered the gold standard in hair restoration surgery and is one of the most commonly performed cosmetic surgery procedures in men. Follicular unit extraction [FUE] is a minimally invasive hair restoration surgery in which individual follicular grafts are extracted from the donor area and implanted in the recipient area. The advantages of FUE techniques, such as faster healing time, less downtime, requiring less technical staff, and scarless, as compared to other treatment techniques, are expected to drive the segmental growth, thus driving the market.

Laser hair therapy is gaining traction as a medical remedy for hair loss despite being frequently associated with shaving body hair. The laser program is most effective for people with more diffuse hair loss, such as receding hairlines, general hair thinning, or male- and female-pattern baldness. Low-level laser hair therapy is a non-invasive and scientifically validated approach that promotes the development of denser and more voluminous hair. The potent clinical-strength laser devices, also known as red light therapy, treat alopecia, hair loss in both men and women and male pattern baldness.

Based on end-users, the global market is segmented into hospitals, clinics, and other end-users. 

The hospitals segment owns the highest hair restoration market share and is estimated to exhibit a CAGR of 6.21% during the forecast period. Hair restoration is a relatively new and constantly developing field of medicine. Numerous advancements have been made, allowing patients to experience more realistic results. Complications are possible with each surgical operation, which poses a significant challenge to the patient and the surgeon. The number of procedures keeps growing as surgery becomes more and more common. As a result, hospitals do these procedures primarily so that patients may be monitored and any issues can be addressed.

The International Society of Hair Restoration Surgery estimated that 735,312 hair restoration procedures were performed worldwide in 2019, increasing to 2,221,191 systems in 2021. Out of the total treatments conducted in 2021, a significant proportion of 628,604 were classified as surgical interventions, primarily administered within hospital settings. Such a high number of surgeries has increased the growth of the segment.

Aesthetic clinics and aesthetic physicians, as the general public sometimes refers to them, are general practitioners focusing on aesthetic medicine. These physicians attend certificate, diploma, or even master's courses to study and train in this field. All the restoration procedures can be done in the clinics; however, primarily, nonsurgical procedures happen in these places, and increasing interest in these procedures and advances in the different nonsurgical devices is expected to boost the segment growth.

Recent Developments

• May 2023- Pristyn Care, a startup based in Gurugram, announced the addition of hair transplant operations to its list of aesthetic surgery procedures. Pristyn Care, strongly dedicated to healthcare excellence, wants to provide hair transplant options to people seeking efficient hair restoration.

• August 2023- Levo Spa and Salon, a prominent name in the beauty and wellness industry, announced its partnership with Australia's renowned Evolved Hair Restoration, heralding the opening of a cutting-edge hair transplant clinic.