According to new research from Technavio, the hair wigs and extension market is expected to have a year-on-year growth rate of 10.28% in 2021, growing at a CAGR (Compound Annual Growth Rate) of almost 10% between 2020 and 2025.
The report identifies the growing prominence of celebrity and social media influencers as the major trend influencing the hair wigs and extension market. It states: “Rapid penetration of the internet, the high adoption of smartphones, and the rising prominence of digital media have increased the number of online users globally. This is encouraging hair wig and extension vendors in the market to invest in social media campaigns and promote their products through social media influencers for wider reach. This trend is expected to positively influence the growth of the market during the forecast period.”
However, despite the adoption of such marketing strategies, increasing labour costs are expected to reduce the growth opportunities for vendors.
APAC (Asia-Pacific region) is cited by Technavio as being the largest market for hair wigs and extensions. Factors such as the increasing population and the growth of the healthcare and entertainment industries are creating significant growth opportunities for hair wigs and extensions manufacturers in the region.
The worldwide market is fragmented in nature due to the presence of several global and regional players. In addition, the hair-wigs market is capital intensive, which has enabled many established players to have a competitive advantage over other players. To compete and sustain in the market, other players are implementing various growth strategies such as new product launches and M&As (Mergers & Acquisitions).
The Technavio report is titled ‘Hair Wigs and Extension Market - Forecast and Analysis Report 2021-2025’.