CAGR: 8.2%Current Market Size: USD 8.4 BillionFastest Growing Region: APAC
Largest Market: North AmericaProjection Time: 2023-2030Base Year: 2022
The global alopecia market is expected to grow from USD 8.4 billion in 2022 to USD 15.8 billion by 2030, at a CAGR of 8.2% during the Projection period 2023-2030. The growth of this market is mainly driven owing to the increasing prevalence of hair loss among people from all age groups.
Spot baldness is another name for alopecia areata. It is a medical disorder in which all or partial body parts lose their hair. Frequently, it causes a few bald spots to appear on people's scalps. Typically, a spot is the size of a penny. In rare instances, the entire head or body's hair may fall out permanently. A breach in the immunological privilege of the hair follicles can cause alopecia areata, an autoimmune illness. A family history of the same illness is one risk factor for alopecia areata. The mechanism involves the body's inability to identify its own cells as a result of the hair follicle's loss. There is currently no known treatment for the condition, however various drugs are being explored for regrowth, such as cortisone injections, sunscreen to protect the affected area from the sun and cold, and glasses if eyelashes have been damaged or are absent. Another kind of androgenetic alopecia, known as male-pattern baldness in men, is widespread in both sexes. In this instance, hair loss is clearly specified. After some time, the 'M'-shaped hairline foam feature is frequently on the way to partial or total baldness. It is a different condition for girls than it is for guys. Women have thinning hair all over the head, which frequently progresses to total baldness. Men who have certain medical disorders, such as coronary heart disease, prostate enlargement, hypertension, and many others, are more likely to develop androgenetic alopecia.
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Market Dynamics:
Drivers:
The market for alopecia areata is expected to rise as hair loss becomes more common. According to the American Academy of Dermatology Association (AAD), around 30 million women and 50 million men in the US were estimated to have alopecia in 2018. Around 60% of people experience hair thinning, with pattern hair loss being the most prevalent kind of hair loss in both men and women, according to the Journal of Clinical and Diagnostic Research (JCDR). Additionally, regardless of gender, 2% of the general population is susceptible to developing alopecia areata in their lifetime.
The increasing cost of healthcare contributes to the development of the market for alopecia areata and has a significant impact on its growth rate. An increase in the number of initiatives being carried out by groups like the American Hair Loss Association and the National Alopecia Areata Foundation to spread knowledge about hair regrowth and treatment options is what is causing a rise in healthcare spending.
Restraints:
The high cost of the treatment will hinder the market's growth rate. The market for alopecia areata will be impacted by limited primary care services and a lack of healthcare infrastructure in emerging nations. Additionally, during the projected period, rigorous regulatory rules and a lack of public awareness would serve as restraints and further restrict the market's growth pace.
Opportunities:
The market is expanding as a result of increasing research and development activity. This will present advantageous opportunities for the market for alopecia areata to expand. Along with this, an increase in drug releases and approvals will speed up the market's expansion. Alopecia areata market growth will also benefit from increased investments in the development of cutting-edge technologies and an increase in the number of emerging markets during the Projection period.
Challenges:
Reimbursement is still a significant issue in this market. The majority of treatment techniques for hair loss are not covered by insurance policies since they are seen as aesthetic procedures rather than medically necessary procedures. In general, out-of-pocket expenses for treating alopecia include copays for prescription medications, frequent doctor visits, and co-insurance for treatment methods. The market's expansion may also be hampered by the growing use of alternatives like traditional treatments like Ayurvedic, Chinese, and homemade pharmaceuticals.
Segmentation Analysis:
The global alopecia market has been segmented based on disease type, treatment, end-user, and region.
By Disease Type
The disease type segment includes alopecia areata, androgenetic alopecia, cicatricial, traction and others. The alopecia areata segment led the largest share of the alopecia market with a market share of around 29% in 2022. Researchers do not fully understand what causes the immune system to attack hair follicles in alopecia areata, but they believe genetic and environmental factors both play a part. Alopecia areata cannot be cured; however, it can be treated, and the hair can grow back. Alopecia is often treated with medications used to treat other medical conditions. In the projected period, the alopecia market is expected to grow significantly due to the discovery of innovative therapies and supportive measures during the approval process. As an example, Incyte Corporation and Eli Lilly and Company received the U.S. FDA's Breakthrough Therapy Designation in March 2020 for the treatment of AA. This designation will expedite the approval process.
By Treatment
The treatment segment includes devices and pharmaceuticals. The alopecia areata segment led the largest share of the alopecia market with a market share of around 59% in 2022. A high share of the market was controlled by the pharmaceutical industry, which generated the highest revenue share. This category is largely driven by the low cost of pharmaceutical items and the increased use of prescriptions and over-the-counter medications. Finasteride and minoxidil are the most commonly used medications for treating hair loss.
By End-Users
The end-users segment includes homecare, dermatology clinics, hospitals and others. The front/headlamps segment led the largest share of the alopecia market with a market share of around 32% in 2022. A significant portion of the market will be dominated by dermatology clinics during the Projection period, driven by newer technologies and appropriate medications. A new type of laser therapy which stimulates hair growth will increase treatment rates among patients with hair loss, boosts the growth of the market.
Global Alopecia Market- Sales Analysis.
The sale of alopecia expanded at a CAGR of 7.9% from 2016 to 2022.
Growing healthcare expenditures are another significant factor contributing to alopecia market growth, as they help to improve the infrastructure of the market. By conducting more activities to raise awareness about hair regrowth and treatment alternatives, organizations such as the National Alopecia Areata Foundation and the American Hair Loss Association are driving an increase in healthcare expenditures.
Continuous research and development by various major key players are creating more growth opportunities for the market growth. Rising awareness about such treatments among the patients are driving the market in various regions. Hair loss treatment rate is also expected to increase in the near future due to the prevalence of diseases related to hair loss, such as cancer, polycystic ovarian syndrome, and rheumatoid arthritis.
Thus, owing to the aforementioned factors, the global alopecia market is expected to grow at a CAGR of 8.2% during the Projection period from 2023 to 2030.
By Regional Analysis:
The regions analyzed for the alopecia market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The North American region dominated the alopecia market and held a 37.5% share of the market revenue in 2022.
Global Alopecia Market - Country Analysis:
Germany's alopecia market size was valued at USD 0.67 billion in 2022 and is expected to reach USD 1.26 billion by 2030, at a CAGR of 8.3% from 2023 to 2030.
Market growth is largely attributed to the development of technology and awareness programs that are run by both governmental and commercial organizations. A significant part of the European Hair Research Society's mission is to promote knowledge about the best methods for treating and preventing hair loss.
China’s alopecia market size was valued at USD 0.70 billion in 2022 and is expected to reach USD 1.34 billion by 2030, at a CAGR of 8.5% from 2023 to 2030.
Increasing demand for effective hair loss treatment pharmaceuticals, particularly oral treatments, is the primary driver of the Chinese alopecia market. Due to their ability to reduce the number of prescription dosages while increasing therapeutic efficacy, oral hair loss treatment medicines have become increasingly popular because they help to ensure patient safety.
India's alopecia market size was valued at USD 0.52 billion in 2022 and is expected to reach USD 0.99 billion by 2030, at a CAGR of 8.4% from 2023 to 2030.
Due to increased emphasis on enhancing aesthetic appearance, patients' interest in novel and emerging treatment modalities for alopecia is being increased by growing popularity of cosmetic operations. As a result, the country's market revenue is expected to grow further.
Key Industry Players Analysis:
To increase their market position in the global alopecia market business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2022-2030 |
Base year |
2022 |
CAGR (%) |
8.2% |
Market Size |
8.4 billion in 2022 |
Projection period |
2023-2030 |
Projection unit |
Value (USD) |
Segments covered |
By Disease Type, By Treatment, By End-User, and By Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Merck & Co. Inc., Lupin, Abbott, F. Hoffman-La Roche Ltd., Sanofi, Eli Lilly and Company, AbbVie Inc., Cipla Inc., Mylan N.V., GlaxoSmithKline, Bayer AG, Allergan, Johnson & Johnson Private Limited, and Teva Pharmaceutical Industries Ltd. |
By Disease Type |
|
By Treatment |
|
By End-User |
|
Regional scope |
|
Scope of the Report
Global Alopecia Market by Disease Type:
Global Alopecia Market by Treatment:
Global Alopecia Market by End-Users:
Global Alopecia Market by Region:
Global alopecia market is expected to reach USD 15.8 billion by 2030, at a CAGR of 8.2% from 2023 to 2030.
Leading players in the alopecia market are Merck & Co. Inc., Lupin, Abbott, F. Hoffman-La Roche Ltd., Sanofi, Eli Lilly and Company, AbbVie Inc., Cipla Inc., Mylan N.V., GlaxoSmithKline, Bayer AG, Allergan, Johnson & Johnson Private Limited, Teva Pharmaceutical Industries Ltd. among others.
Increasing investment for healthcare infrastructure and increase in the number of R&D activities.
North America region will witness more growth in the alopecia market.
Political Factors- Before deciding whether to expand, the alopecia market should extensively examine the appropriate taxation policies. Tax policy will benefit industries that are top priorities for the government more. Many governments in developing countries are actively attempting to reduce company taxes in order to attract foreign direct investment. The alopecia industry should consider these countries because their low tax rates will make it easier to turn a profit and invest in R&D, innovation, and new product development projects.
Economical Factors- Rising inflation diminishes the purchasing power of money and discourages people from spending on products and services, which may have a negative impact on the alopecia market's ability to increase revenue. Changes in exchange rates can have an impact on a company's profitability. The alopecia market should conduct this research in order to accurately estimate exchange rate variations and avoid unwanted trade and business performance repercussions. A high interest rate indicates that the alopecia market will have to make interest-only payments, raising the entire cost of the loans acquired.
Social Factor- Consumption trends and economic challenges are inextricably linked. When customers have more disposable income and are prepared to spend more on goods and services to better their lifestyles, the alopecia market benefits from exciting growth potential. This is because it is easier to introduce new products and services to these clients, and the prospects of revenue growth are also higher. In order to adjust its marketing mix strategies, the alopecia industry must closely evaluate the consumption/spending patterns and tastes of modern consumers, who are increasingly demanding. The alopecia market must also understand whether consumption is motivated by hedonic or utilitarian motives. The degree of ethnocentrism is an important consumer behaviour component that might affect the success of the alopecia market.
Technological Factors- The alopecia market should favour countries with sophisticated technological infrastructure since these countries make it easier for enterprises to pursue objectives such as cost reduction, innovation, and value creation. A well-developed technological infrastructure also indicates that it will be more difficult for the alopecia market to use technology to create a sustainable competitive advantage because it might be quickly replicated by competitors. By making the necessary technical expenditures, the alopecia market can improve customer experience, produce operational savings, and identify itself as an innovative firm.
Environmental Factors- The alopecia market should favour countries with sophisticated technological infrastructure since these countries make it easier for enterprises to pursue objectives such as cost reduction, innovation, and value creation. A well-developed technological infrastructure also indicates that it will be more difficult for the alopecia market to use technology to create a sustainable competitive advantage because it might be quickly replicated by competitors. By making the necessary technical expenditures, the alopecia market can improve customer experience, produce operational savings, and identify itself as an innovative firm.
Legal Factors- Employment law is a large area of laws that safeguard employees' rights, such as the right to a fair wage, equality, equity, inclusion, justice, and physical and mental safety. While some countries lack effective enforcement of employment laws, others impose hefty penalties for breaking any of the listed employee rights. When entering or operating in such countries, the alopecia market should ensure the safety of the working environment. Appropriate systems must be in place to prevent both direct and indirect discrimination. In the ever-increasing battle for talent, efficient compliance with employment standards can help the alopecia market improve its employer brand reputation, which is crucial for attracting and retaining top talent.
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