CosmoBiz Magazine September 2014 - Page 40

Market Overview US Hair Extension and Wig Market T he “wigstensions” (wigs and extensions) market in the U.S. is rapidly changing. Sales of wigstension products for Caucasian consumers are on the rise while African-American consumers are spending less than they once did. Of course, it is important to read these two markets individually since they are unique in sales trends, types of products and distribution channels. While there is actually no conclusive data on the wigstension markets, BBIM, a research institute which studies the hair industry, estimates that sales of wigstensions grew from $200 million in the 1960’s to about $2.7 billion by 2008 when market growth reached its peak. After half a century of steady growth, the market peaked and then took a hit. (These numbers include both Caucasian and African American market sales, though Caucasian sales are virtually insignificant when compared to those of African Americans who make up 90% of the wigstension consumer demographic.) From 2008 to 2012 the African American wigstension 40 COSMOBIZ SALON SEPTEMBER 2014 industry experienced about a 30% loss in sales, says Travis Johng, a market researcher at BBIM. The decline in sales is also detailed by the three largest hair extension manufactures who also report about 30% order reduction during the same period. In 2013 the mark