The Hair Restoration Facilities industry has grown strongly over the past five years.
The industry has benefited from growth in the size of target market demographics, sound economic conditions, increased confidence in surgical procedures and greater image-consciousness throughout the population.
The main target market for the industry is adult males, particularly older adult males because they are more susceptible to androgenic alopecia, or male pattern baldness.
This market has grown significantly over the past five years due to Australia’s ageing population. Consequently, industry revenue is forecast to rise by a compound annual rate of 3.0% over the five years through 2014-15, to total $150.8 million.
Economic conditions have improved following the global financial crisis and this has contributed to revenue growth. Discretionary income has increased, while consumer sentiment has largely been positive over the past five years.
Consumers have therefore had more available funds and more certainty about economic conditions, providing greater incentive to take the plunge with hair restoration treatment.
Male consumers have also become increasingly image-conscious, leading to a greater focus being placed on having a full head of hair. IBISWorld industry analyst David Whytcross states “image-consciousness and increased confidence in surgical procedures, including individual follicle transplantation and strip harvest, have driven industry revenue growth.” In 2014-15, revenue is forecast to increase by 1.8%.
The industry is expected to continue its steady growth over the next five years, albeit at a slower pace than the past five years.
Target market demographics are expected to continue expanding in size, although the rate of growth of both adult males and the population aged 50 and older is expected to slow.
Economic conditions are expected to remain stable. According to Whytcross, “any fluctuations in consumer sentiment have the potential to limit industry revenue growth, as consumers become hesitant to splash out on high-value surgery and associated treatment.”
Despite this, consumers are expected to increasingly opt for surgery as they become more confident about its efficacy, which will allow facilities to generate more revenue and profit out of each client.
The Hair Restoration Facilities industry is characterised by a low level of market share concentration.
The majority of industry operators are small, locally based boutique clinics.
The largest industry operators are Advanced Hair Studio and Ashley & Martin. These companies both have a national presence and have expanded into foreign markets.
The specialised nature of the industry makes economies of scale difficult to build up, especially as industry operators promote their ability to customise their service based on the individual situations of customers.
For more information, visit IBISWorld’s Hair Restoration Facilities report in Australia industry page.
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IBISWorld Industry Report Key Topics
This industry includes establishments that are primarily engaged in performing surgical procedures to restore or prevent the loss of hair.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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