Hair Wigs and Extensions Market

Market Overview

The global hair wigs and extensions market size was valued at USD 7.59 billion in 2022. It is estimated to reach USD 26.08 billion by 2031, growing at a CAGR of 14.70% during the forecast period (2023–2031). The continuous desire to enhance physical appearances fuels the demand for hair wigs and extensions in both men and women.

Wigs and extensions are false hair products that cover baldness and existing hair. Hair wigs are used as partial or full head coverings to cover areas with little or no hair and for beautification. Wigs are made from synthetic or human hair and have filaments to assist them in fitting nicely on the head. They also have full or frontal lace. Synthetic fibers mainly used for wigs are chemically derived to resemble colored hair.

Hair extensions are also strands of hair attached to the natural hair to increase the length or volume of hair. Hair extensions are typically attached to natural hair by clipping, gluing, or sewing on additional human hair. Strands of human hair are collected from several sources and processed to manufacture hair extensions. Hair extension gives a more natural appearance as compared to wigs.

Market Dynamics

Market Drivers

Increasing Demand for False Hair as a Beauty Accessory 

Rising income levels have increased spending on personal grooming and beauty products. The surge in income levels has also pushed living standards, which boosts end-user confidence to invest in personal grooming. Moreover, according to several behavioral studies, personal grooming increases people's confidence in their working ability and productivity. In 2017, hair care accounted for 18% of the total revenue in the global beauty market and was the second-largest segment after skin care.

Although core products such as serums, shampoos, and oils are still in high demand, hair wigs and extensions are also gradually creating their space in the market. Consumers who choose medium-quality hair products buy hair wigs and extensions since they cost less than high-end hair products and services and provide better results than cheap hair products. Thus, the urge to constantly improve their appearances drives the market for hair wigs and extensions among men and women.

Increasing Hair Fall Among Men and Women 

Currently, hair loss is a serious health issue. The negative effects of hectic lifestyles and inadequate ingestion of essential nutrients in the human body can result in hair loss. Receding hairline, alopecia, and pattern baldness are more prominent in men, whereas hair reduction is more prevalent in women. Hair wigs and extensions are mainly utilized for beautification and function. The functional use of male wigs includes covering the head to conceal receding hairlines or partial or complete baldness.

Similarly, Women use wigs to cover hair loss problems and sport different hairstyles. For instance, women with long hair can use wigs to sport a pixie or bob cut without having to cut their hair short. Radiation treatment and chemotherapy are also propelling women's use of hair wigs. All such factors together drive market growth.

Market Restraint

Rising Expenses in Branding and Manufacturing 

Manufacturers of well-known brands are often associated with high-quality products and are considered more trustworthy in terms of product safety and other aspects. Wholesalers and consumers with limited knowledge of hair goods tend to choose manufacturers of reputable hair goods. Hence, new entrants will struggle to establish their brand and expand their market share.

New market entrants may struggle to find potential customers without strong brand awareness. Moreover, without industry expertise and client resources, the new entrants will find it difficult to gain an edge over the existing hair goods manufacturers, thereby restricting the market growth.

Market Opportunities

Growing Demand for Wigs in the Fashion and Entertainment Industry

Many actors, celebrities, and models have recently admitted using hair wigs. For instance, Katy Perry removed her wig on Instagram, accepting and advocating their use. Kylie Jenner wore a mermaid-esque long purple wig to Met Gala and then a short blonde fringe wig to another event. This is a significant market trend, as the effect of celebrities openly donning hair wigs represents an increase in users who wear wigs for non-functional purposes.

This recent interest in hair wigs is normalizing their use and removing the stigma of wearing them. Social media platforms like Instagram also garner support for using hair wigs by dispelling the conventional stigmas associated with their use in the beauty and fashion industries. Underpinned by these factors, hair wigs are beginning to break the taboo of false hair. They are becoming fashion accessories, statement pieces, and better alternatives to permanent hair change, presenting unprecedented growth opportunities for the hair wigs market.

Regional Analysis

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

North America Dominates the Global Market

North America is the most significant global hair wigs and extensions market shareholder and is anticipated to exhibit a CAGR of 13.63% during the forecast period. In this region, the US dominates the wig and hair extension markets. Human hair and synthetic fiber wigs and extensions have consistently been in great demand from manufacturers in the US. According to NCBI, 80% of North American men face hair loss. These consumers are redefining age perception by working longer and spending more on themselves. Consumers in North America's hair wigs and extensions market gravitate toward hair extensions. The fashion industry largely drives this demand for hair extensions for styling and from customers of African descent.

Furthermore, women of African descent are driving the demand for hair extensions, while male consumers of the same segment have started to stir the demand for Afro-textured wigs. The entertainment industry in North America is also creating a large demand for high-end wigs made from synthetic and human hair. Theater and movie actors typically use wigs made of human hair. Moreover, fashion show organizers keep a stock of wigs in various hairstyles and colors, which models in different shows reuse.

Asia-Pacific is estimated to exhibit a CAGR of 15.95% over the forecast period. The regional market for hair wigs and extensions is flourishing. It has great potential to surpass the market's growth in other regions owing to existing key players, increasing demand from domestic customers, rising disposable income levels, and growing fashion trends. The prospering television and movie industries across India, China, and South Korea are the other factors boosting Asia-Pacific's market growth. Compared to other regions, Asia-Pacific is one of the most rapidly urbanizing. Between 2010 and 2030, the World Bank predicts a 68% increase in the number of urban households in the area.

Additionally, the demand for hair wigs and extensions is anticipated to increase due to the anticipated urbanization of the developing Asia-Pacific region. Manufacturers are setting up production facilities in Asia, mostly in China and India, in response to the region's growing demand for hair products to compete with lower-priced hair wigs and extensions on the global market. These low-priced wigs and extensions are witnessing high demand among customers who are exploring cost-effective options for surgical hair replacement procedures.

Africa has a higher penetration and adoption rate for hair extensions and wigs than the Middle East. A rise in start-up businesses producing hair wigs and extensions has coincided with increased demand throughout Africa. Businesses owned by the natives have established a sense of trust that the products have been made to cater to customers of African origins. This serves as a major factor propelling the market in Africa. In addition, the use of hair wigs and extensions as fashion accessories has increased with the economic development in some African countries, leading to higher disposable income, particularly among women. That being said, a majority of African consumers, due to low incomes, prefer buying low-to-medium quality human hair extensions or synthetic hair wigs.

Segmental Analysis

The global hair wigs and extensions market is segmented by product type, hair type, end-user, and distribution channel.

Based on product type, the global hair wigs and extensions market is segmented into hair extensions, hair wigs, and toupee. 

The hair extensions segment is the largest revenue contributor to the market and is projected to exhibit a CAGR of 13.71% over the forecast period. Hair extensions are human or synthetic hair strands that can be affixed to natural hair for functional or aesthetic purposes. Enhancing the length and volume of existing hair is the primary use of hair extensions. Consumers also use colored extensions because they look like colored streaks, eliminating the need for coloring natural hair.

Unlike wigs that can be worn or removed immediately, fixing hair extensions requires a stylist and can last for three to six months. These extensions are available in both human and synthetic hair. Human hair extensions must be collected in lengthy strands, whereas synthetic hair extensions can be cut to the desired length. Generally, hair extensions are in long strands and various formats such as clip-in, micro link, cold or hot fusion, and tape-in.

Based on hair type, the global  market is divided into synthetic and human hair. 

The human hair segment dominates the market and is predicted to exhibit a CAGR of 14.03% over the forecast period. Since medieval times, human hair has been used to make wigs, extensions, and hairpieces. Wealthy people frequently wear human hair wigs to enhance their appearance. One of the major human hair suppliers is Indian temples, where men and women shave their heads as offerings to their deities. The hair collected from temples is often of top quality since they have unilateral cuticles and are least exposed to chemical hair products and styling. In India, pilgrims go to temples and tonsure their heads as part of religious rituals. The temples then auctioned the hair collected through tonsuring rituals.

Based on end-users, the global hair wigs and extensions market is bifurcated into individual consumers and the entertainment and fashion industry. 

The individual consumers segment owns the highest market share and is projected to exhibit a CAGR of 15.35% over the forecast period. The individual consumer sector includes end users who purchase hair wigs and extensions from shops or hair salons. These consumers purchase hair wigs and extensions for personal use, increasing their demand. Hair wigs are extensively used in African and Latin American countries and other emerging economies. Consumers with various degrees and types of alopecia or hair loss view hair wigs and extensions as products that save time by avoiding long and tedious hair treatments. Native Africans and consumers of African descent are also recurring hair wig and extension buyers. Currently, Japanese men are also gravitating toward high-quality wigs, preferably made with human hair, to cover areas affected by male pattern baldness.

Based on distribution channels, the global market is bifurcated into online channels and retail stores. 

The online channel segment is the highest contributor to the market and is anticipated to exhibit a CAGR of 14.73% over the forecast period. Several manufacturers and distributors supply online retailers with a variety of options. Due to the convenience and simplicity of access offered by e-commerce channels, wigs and extensions are sought after by a large number of e-shoppers. Market players of online channels frequently use social media to publicize their products, which is a significant factor in channel selection.

Some vendors offer YouTube videos (video tutorials) and help beginners learn how to properly handle and use hair wigs or extensions. Moreover, the prices of wigs and extensions are usually lower on online platforms than in retail stores because of the discounts that vendors offer to promote their products. These factors also drive the sales of hair wigs and extensions in online channels.

Recent Developments

• July 2023- BELLAMI, the global leader in the billion-dollar hair extension industry, announced the introduction of BELLAMI Professional Hair Care, the first professional-grade hair extension care line for in-salon and at-home use.
• March 2023- Elfin Hair introduced its newest product: long afro wigs for African women. The wigs are manufactured from 100 percent human hair and feature the largest 13x4 HD transparent lace available.