Frost & Sullivan - Organized Segment in Hair Transplant Market to Grow at CAGR of ~25 Percent in Selected Metros and Tier 1 Cities
December 20, 2013 - Mumbai, Maharashtra, India
The technique of hair transplant has come to the rescue. There are two techniques of hair transplant, one is called the FUE (Follicular Unit Extraction) and the other is known as FUT (Follicular Unit Transplant). FUT technique is the one majorly adopted by doctors, but FUE is also seen to be gaining momentum with the advent of international chains and few trained FUE doctors. The cost per graft in the market varies from INR 50 to INR 200 and more depending on the technique used, operating doctor name, clinic’s brand name, location of the center etc.
Growing celebrity and media influence, increasing awareness to take care of one’s appearance, peer pressure, societal pressure, growing urbanization, higher income, higher awareness levels and growing word of mouth are the potential drivers for the hair transplant market. Further, large number of customers in the age group of 25 – 30 years (at the time of marriage) undergoes hair transplant service in the country.
The hair transplant industry is dominated by doctor(s) owned and managed stand-alone centers (in tune of 80 percent). From 2009-10 onwards, various national and international chains like DHI, Berkowits, Richfeel Trichology Center, B PERFECT, ADHI have set up hair restoration clinics in key Indian cities. Further, some these players have aggressive plans in next two - three years to strengthen their presence in the country.
Selected tertiary care hospitals have also started offering hair restoration services. Delhi NCR and Mumbai have become the hubs for hair transplant in India with lot of inflow of patients from across the country.
According to Ankit Goyal, Program Manager, Healthcare Practice, Frost & Sullivan, “The organized segment is growing at the rate of ~25 percent in selected metros and tier I cities like Delhi NCR, Mumbai, Chennai, Hyderabad, Bangalore amongst others. The size of the Indian hair transplant market is estimated at INR 453 Crore in FY 2012-13. In addition, International chains are seeing India as a potential market for hair restoration.”
The hair transplant market faces challenges in the form of no quality accreditations, which leads to lower quality of hair transplant service from small centers ultimately leading to bad word of mouth for the procedure. Moreover, high cost involved and no insurance coverage are leading to only a small portion of society going for the procedure. Also, lack of specific medical qualifications leads to low entry barrier for new players and limited word of mouth, success stories, lower awareness especially in tier 2 cities and presence of quacks and unethical practices in the overall market are the major hurdles.
If you are interested to know more about the Hair Restoration Market, then send an e-mail to Akshata Mhatre/ Priya George, Corporate Communications, at firstname.lastname@example.org / email@example.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state, and country. Upon receipt of the above information, a brochure will be sent to you by e-mail.
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Source: Business Wire India