As people pay more attention to their appearance, China’s hair care market has reached a value of over 100 billion yuan
From the Lead Research Institute
The “appearance economy” has fueled people’s need to look good. And as people pay more attention to their health and physical appearance, the hair care management market is seeing unprecedented growth opportunities. More than ever, consumers want healthy hair and are open to cosmetic changes to their hair to improve their appearance and self-confidence. This further boosts the demand for hair transplant services.
According to the report “Research on China’s Hair Care Services Industry 2024”, jointly published by LeadLeo and Frost & Sullivan, China’s hair care market has grown rapidly in recent years from a value of 58.29 billion yuan ($8 billion ) in 2020 to 79.55 billion yuan in 2023, and is expected to hit 116.54 billion yuan by 2028. In the future, personalized services and customized solutions will dominate the market. Further developments in China’s economy will unlock even more potential for the industry and broaden its prospects.
China’s hair transplant industry grew rapidly between 2020 and 2023. Improvements in minimally invasive and traceless hair transplant technologies improved treatment results and reduced recovery time, attracting more consumers. The industry is expected to maintain its rapid growth rate between 2024 and 2028 and reach a market value of 30.4 billion yuan by 2028, representing a compound annual growth rate of 8.5%.
There are currently four main types of institutions in the hair transplant industry with significantly different trends in market share, according to the LeadLeo-Frost & Sullivan report. National hair transplant chains account for about 21% of the market. comprehensive medical beauty institutions account for 30%; hair transplant departments in public hospitals make up 14%; and small and medium-sized local institutions take the remaining 35%. The share held by the first type, national chains, decreased from 24% to the current 21% as a result of some new chains closing in early 2023.
Currently, demand is highest for hair transplant and top hair services, especially among young men aged 25 to 35 years. Men account for 82.6% of hair transplant consumers. Most work in high-pressure industries such as IT and finance and experience hair loss due to their career and lifestyle choices. Thus, they seek hair cover and hairline adjustment surgeries to improve their appearance and boost their confidence.
Despite the rapid growth of the hair transplant market, penetration is still low. The market was worth just 20.1 billion yuan in 2023, with its customers accounting for only 0.4% of people suffering from hair loss. With huge potential demand waiting to be met, the industry still has significant room for growth.
LeadLeo Research Institute is an original content platform for bank and corporate research and an innovative digital research service provider with nearly 100 senior analysts. You can contact the platform at: CS@leadleo.com
This commentary is the views of the author and does not necessarily reflect the views of Bamboo Works
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