Economics Of Hair: How Does Economics and Hair Relate?

Does the thought of economics make your eyes glaze over? Well, wait until you hear about the economics of hair! Believe it or not, hair is a big business, and there are numerous factors to consider when it comes to demand and supply. In this blog post, we'll take a closer look at the economics of hair and how it affects businesses and consumers alike. Whether you're a business owner looking to cash in on the latest trend, or just someone curious about the world of hair, read on!

The ever-rising demand for different hair types in today’s market has fueled the rapid growth of the hair industry. The increasing demand for real human hair, virgin hair and more, has been sparked by a rampant increase in hair loss, hair thinning, and other health-related issues. Currently the global hair wig, weave, extensions market is valued at $7 billion and is estimated to grow to $10 billion by 2024.

The hair extensions found in the market today are sourced from countries like India, Vietnam, and many South East Asian countries (SEA). China represents one of the biggest human hair manufacturers as it boasts close to 70% of hair manufacturing factories.

These manufacturers then refine the hair and sell it through stores. The prices are dictated by factors such as length of the hair and the texture. Hair that is directly sourced from donors often comes at higher prices than waste hair that is known as fallen hair.

According to 2019 statistics by Comtrade data, China generated 1 billion dollars from exporting human hair. This hair is mainly imported to the United States, which is the biggest importers of these human hair products. Statistics show that the United States imported more than $130 million worth of human hair back in 2020. Furthermore, the African American market, form a big percentage of hair products in America. 

Sales of human hair products and global consumption of these products have impressive resilience. The industry still experiences relatively decent sales even in harsh economic conditions. Looking at the 2008 financial crisis in the United States, the hair industry still thrived amid that harsh economic downturn ravaging other industries.

One of the reasons that contribute to this is that hair products are perceived as an essential part of our everyday lives. Some depend on extensions, weaves, and wigs for beauty, while some use them to cover hair-related complications such as hair loss and thinning. By doing this, they unknowingly help to make the economy remain afloat and sustainable enough.


Final Take Away

Hair is an essential accessory to look good and cover hair loss and boost self-esteem. With this reality in mind, the hair industry will always be a massive contributor to the economies of many countries. As an entrepreneur, you too can enjoy a piece of this evergreen product with constant demand. One great opportunity is to start your own hair vending machine. If you're interested in learning more about our vending machine franchise, contact us today at!

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