Plenty of room for growth in China’s hair transplant market

As people attach greater importance to their appearance, China’s hair care market has reached more than 100 billion yuan in value

By Lead Leo Research Institute

The “appearance economy” has fueled people’s need to look good. And as people attach greater importance to their health and physical looks, the hair care management market is seeing unprecedented growth opportunities. More than ever, consumers want to have healthy hair and are open to aesthetic changes to their hair to improve their appearance and confidence. This is further boosting demand for hair implant services.

According to the “Research on China’s Hair Care Services Industry 2024” report, co-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 only unleash 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 have improved treatment results and cut recovery time, attracting more consumers. The industry is expected to maintain its rapid growth pace 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 major types of institutions in the hair transplant industry with significantly different market share trends, 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 account for 14%; and small and medium-sized local institutions take the remaining 35%. The share held by the first type, national chains, fell from 24% to its current 21% as a result of some new chains closing in early 2023.

At present, demand is highest for hair transplant and hair topper services, especially among young men ages 25 to 35. Males account for 82.6% of consumers for hair transplants. Most work in high-pressure industries such as IT and finance, and face hair loss due to their career and lifestyle choices. Thus, they seek hair topper and hairline adjustment surgeries to enhance their appearance and boost their confidence.

Despite the hair transplant market’s rapid growth, penetration is still low. The market was worth just 20.1 billion yuan in 2023, with its customers only accounting for 0.4% of people suffering from hair loss. With huge potential demand waiting to be met, the industry still has substantial room for growth.

LeadLeo Research Institute is an original content platform for research on banks and companies 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 writer and does not necessarily reflect the views of Bamboo Works

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