Hair Accessories Industry ESG Thematic Report, 2023

Environmental, Social and Governance in Hair Accessories Industry

A wide range of products in the hair accessories industry ranging from hair elastics to wigs, are sourced from plastic, which is extracted from the natural oil gas, leather, extracted from animals are some of the and rubber from latex plants challenges that negatively impact this market in the environment of ESG. The disposal of the synthetic fiber products is another significant issue in terms of the environment of the hair accessories industry.

The incline in demand for fashion accessories and the negative impacts caused by the materials used to manufacture the products of industry has impacted the key companies of the market to adopt to alternative materials and sustainable methods of production. The United Nations’ Sustainable Development Goals (UN SDGs) is a comprehensive framework that helps companies in this market obtain a perspective on the impact of their products and operations on ESG parameters.

ESG Trends

The products of the hair accessories industry such as hair elastics, wigs and hair sliders are fundamentally made from leather, rubber, stainless and plastic. A variety of challenges in terms of the environmental aspect of ESG are prevalent in the market. For producing a hair elastic product, rubber and leather are crucial ingredients. The rubber is extracted from latex, which can be obtained naturally or can be synthetically produced.

The natural production of the rubber from latex trees is environmentally straining, since pesticides and industrial tools are involved, the cultivation process is reported to be carbon intensive. Further it has been reported that the production of latex synthetically emits latex vapors, which are toxic in nature, affecting the health of humans and environment, in contrast to UNSDGs of good health and wellbeing (SDG3) and climate action (SDG13).  

Further extraction of leather is a controversial issue in the ESG arena. The leather is generally extracted from the hides of animals and reptiles. The hunting down of animals and reptiles for their hides at industrial scale supposedly leads to extinction of species, which also leads to ecological imbalance, contrasting to the UN SDG goals of land on life (SDG15).

Usage of plastic for producing mesh for hair wigs is a challenge. Plastic is sourced from different kinds of sources such as coal, natural gas, salts and other toxic chemicals such as benzene and vinyl hydrochloride. The sourcing of fossil fuel i.e., natural gas strains the environment, since the extraction process leaves intense amounts of carbon footprint, contributing to the increase of global warming and climate change.

In response to the aforementioned circumstances, some of the key companies of the hair accessories have integrated a circular economy to reduce the carbon footprint from the production and also reduce the dependence on fresh raw materials. Some of the key industry leaders have replaced leather with silk as raw material to produce hair elastics, since silk can be produced more organically and is reported less environmentally adverse. 

Growth of the Hair Accessories Market

The hair accessories market at global scale was economically valued at USD 31.6 billion and is forecasted to expand with a compound annual growth rate (CAGR) of 7.7% by 2028. The demand for the hair accessories as a fashion statement has been driving the market, however, extraction of raw materials such as leather and rubber pose a challenge to the market in terms of environment. Further, only a small number of major companies have made policies in regard to sustainable production, while still a major fraction of the producers is yet to make the policies.

Key Companies in this theme

    • Goody Products Inc.

    • Claire’s

    • Conair Corporation

    • H&M

    • Forever 21

Scope of the Hair Accessories Industry ESG Thematic Report

    • Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape

    • Key insights on infrastructure developments and ESG issues affecting the theme

    • Identify key initiatives and challenges within the industry

    • Identify ESG leaders within the industry

    • Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process

    • Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment

Key Aspects of the Hair Accessories Industry ESG Thematic Report

    • Offers a global perspective of the hair accessories industry and the policies and measures taken by the players, for overcoming the challenges faced in terms of Environment, Social and Governance.

    • Key insights into the sustainability practices of major players in the market.