Spain is the second country in the world with the highest level of alopecia, only behind the Czech Republic. Since 50% of Spanish men and 42% of Spanish women suffer from this alopecia, the demand for hair grafts and products is very high within our borders. However, these products and services have traditionally been offered at more competitive prices in other countries, such as Turkey, Portugal, and Italy.
Spain is already home to hair clinics that offer competitive prices and a better guarantee to patients, such as Hair Solution and Sava.
Increase in supply…
In 2019, the Spanish hair market accounted for 0.3% of the national GDP, accounting for a size of 220 million euros. There are, however, an increasing number of clinics and companies dedicated to hair products and services. Meanwhile, the market is undergoing a continuous process of innovation to satisfy the needs of its customers. As a result, the offer would level out with the demand in the coming years, thus enabling the market to reach much more significant figures.
Spain has gone from being an exporter of hair tourism to an importer. Madrid, for example, offers vacation packages that include three nights in a four-star hotel, a Real Madrid match, and a hair graft. Not only do these offerings highlight Spain’s already well-known potential as a tourist destination, but highlight the country as a hub within the hair market.
Besides the increase in supply in our country, there is also a growing worldwide demand for products designed to provide solutions for hair loss. The rise in chronic diseases such as alopecia and stress levels and heightened concern for appearance are leading to an expected compound annual market growth rate of 13.26% over the next few years and a market worth over $45 billion by 2028.
A more attractive market
Both supply and demand growth represents a very attractive market from an investment point of view. Hair solutions go far beyond grafting surgeries, i. e., the removal of hair from a donor region of the patient and its application to a recipient area to solve the lack of hair in the recipient area.
However, there are other clinical methods for hair loss, such as laser therapy and scalp reduction. Whereas the first method aims at penetrating at a cellular level to accelerate hair growth, the second removes the bald area of the scalp, sewing up the surrounding areas with hair. To these methods must be added other less invasive solutions such as hair prostheses (wigs tailored to the patient) or hair fibers (keratin filaments that adhere to the hair employing their electrostatic charge).
Training is key
Spain boasts hair techniques, supply, demand… However, training is crucial for clinics to offer the best treatments. As with any other type of surgery, hair surgery requires trained professionals to ensure successful results and the patient’s well-being throughout the process. Given that the supply growth requires an increase in the number of expert hair professionals, there is also a growing demand for training to qualify them for these treatments.
Fellow Funders has identified the attractiveness of the cosmetic hair industry for our investors. For this reason, we have opened a round with Abelross International Business. This company owns Hair Solution, Sava, and LuxHair, which offer effective 360 solutions to people suffering from alopecia and train professionals in the industry on the different hair treatments.
Turkey, Portugal, and Italy. All are very appealing tourist destinations. In the coming years, Spaniards are likely to continue to visit them, but no longer for hair-related reasons. The hair cosmetics sector is booming.
*Note. The figures in this article have been provided by Abelross International Business.