The hair extensions market in the United States
When the economy bounces back to the pre-covid situation it will have to catch up with the 4 % yearly growth. This combined with the average lifetime of the hair products that are today in the possession of your clients a growth rate of above 20% is expected. Are you ready to take your share of the US hair extensions market?
The Covid-19 crisis has impacted the import of human and synthetic hair in the US significantly. A drop of nearly 20% less import in 2020, compared to steady growth of the import the last 3 years. Given the low volume of export of hair, this drop caused a lower domestic demand. Next to lower demand due to fear about the presence of the Corona virus on imported products, scarcity of raw materials in countries like North Korea impacted the availability of products and higher prices.
The search in the US for the overall keyword hair, in category beauty and fitness, on Google Trends has rather stable pattern. In the beginning of summer the search is the highest, the higher 90 or even 100 and at the end of the year in the lower 80’s. However, in March and November 2020 the search for hair hit an all-time low in the 60’s. The lack of demand for hair as shown before is supported by a lack of interest in 2020.
Do you want to earn your money by selling hair?
Sources of information for the US Hair Extensions Market research
You can find information about the evolution of the US Hair Extensions market in several sources. Like trade information, Google trends and the financials of companies like Mayvenn and Private Label extensions.
International trade information -UN Comtrade
The United Nations keep record of the trade flows, import and export, between nearly 200 countries. The data is available in a rather detailed level, based upon the same coding used to calculate import duties. The information gives a good insight in the demand for hair products (the import) in the United States. However, the available insight is not detailed enough to exactly see the evolution of hair extensions. Products made of human hair, or synthetic hair do include wigs, false beards, eyebrows, eyelashes and the like. However with the right disclaimer this data shows the market, and the growth percentage over the years.
Harmonized System (HS) to estimate domestic demand
The Harmonized System is a standardized numerical method of classifying traded products. It is used by customs authorities around the world to identify products when assessing duties and taxes and for gathering statistics. When you import or export hair, you need to know the HS code for hair to full fill your tax requirements. But you can also use these codes to compare the trade flow of hair to and from your country. You can see the import and export of hair and estimate domestic consumption of hair. It is important to understand the limitations of this data, but it does provide insight in a trend for a specific country.
Codes used:
6703 Human hair, dressed, thinned, bleached or otherwise worked; wool, other animal hair or other textile materials, prepared for use in making wigs or the like (excl. natural plaits of human hair, whether or not washed and degreased, but not otherwise processed)
6704 Wigs, false beards, eyebrows and eyelashes, switches and the like, of human or animal hair or of textile materials; articles of human hair, n.e.s.
This includes, complete wigs of synthetic textile materials; False beards, eyebrows and eyelashes, switches and the like, of synthetic textile materials (excl. complete wigs).
Wigs, false beards, eyebrows and eyelashes, switches and the like, of human hair, and articles of human hair, n.e.s. and Wigs, false beards, eyebrows and eyelashes, switches and the like, of animal hair or textile materials (excl. synthetic textile materials.
Coverage
The United Nations Commodity Trade Statistics Database (UN Comtrade) contains detailed imports and exports statistics reported by statistical authorities of close to 200 countries or areas. It concerns annual trade data from 1962 to the most recent year. UN Comtrade is considered the most comprehensive trade database available with more than 1 billion records. The database is continuously updated. Whenever trade data are received from the national authorities, they are standardized by the UN Statistics Division and then added to UN Comtrade.
Some limitations are applicable for the data available in UN Comtrade:
The values of the reported detailed commodity data do not necessarily sum up to the total trade value for a given country dataset.
Countries do not necessarily report their trade statistics for each and every year. UN Comtrade does not contain estimates for missing data.
Data are made available in several commodity classifications, but not all countries necessarily report in the most recent commodity classification.
No adjustments are made when data are converted from a more recent to an older classification.
Imports reported by one country do not coincide with exports reported by its trading partner. Differences are due to various factors including valuation (imports CIF, exports FOB), differences in inclusions/ exclusions of particular commodities, timing etc.
Almost all countries report as partner country for imports the country of origin, be aware the term ‘partner country’ in the case of imports does not necessarily imply any direct trading relationship.
Google Trends
Google has the insight of demand for any topic, including hair and hair products. In Google trends one can see the Interest over time. The numbers represent search interest relative to the highest point on the chart for the given region and time. A value of 100 is the peak popularity for the term. A value of 50 means that the term is half as popular. The US hair extensions market depends on the interest of clients in hair. In 2020 there have been clear moments people did not prioritize hair as very important. This had a negative impact on overall demand for hair and hair products in the US.
Beauty and hair companies
Mayvenn, Inc. is located in Oakland, CA, United States and is part of the Wholesale Sector Industry. Mayvenn, Inc. generates an estimated $4.78 million in sales (USD). Founded in 2013 the company raised $ 2 million in 2013, $10 million in 2015 and $ 23 million in 2018. Mayvenn employs 63 people (81% of whom are people of color) and it directs business to 3,000 black stylists across the country.
Private Label extensions , 1272 Dahlgren Ln, Atlanta, Georgia, 30316, United States. Founded in 2014 and employs 27 people and generates $ 7 million in revenue. It offers branding, packaging, websites, and wholesale.
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