Dressed up: Despite strong competition, higher priced services have supported growth

The Hairdressing and Beauty Services industry has expanded over the past five years. Rising demand for beauty treatment services has been propelled by the emergence of new markets, higher discretionary incomes and a growing population. The increasing popularity of high-priced beauty treatments such as laser hair removal and microdermabrasion has lifted revenue in some segments. Growing image consciousness among men has boosted demand for industry services such as hair removal. Industry revenue is expected to increase by an annualised 1.3% over the five years through 2017-18, to $4.9 billion. However, revenue is expected to decline by 0.8% in the current year, reflecting an expected drop in discretionary incomes and negative consumer sentiment...read more.

Industry Statistics & Market Size
Revenue
$5bn
Annual Growth 13-18
1.3%
Forecast Growth 18-23
Profit
Employment
84,871
Businesses
22,353
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • New markets and a growing population have aided industry demand and revenue growth
  • An increasing trend of male grooming has benefited the industry over the past five years
  • Increases in household discretionary income are anticipated to boost industry revenue
  • Industry Report - Industry SWOT Analysis Chapter

    The Hairdressing and Beauty Services industry is currently in the mature phase of its life cycle. Industry value added, which measures the industry’s contribution to the whole economy, is expected to increase by an annualised 2.4% over the 10 years through 2022-23. This represents an underperformance of projected growth in real GDP of 2.5% over the same period. As a result, the industry’s contribution to the overall economy is expected to fall marginally. Many markets and geographic localities are now saturated. There is also some degree of consolidation occurring, which is characteristic of a mature industry.Industry operators have a high rate of business failure, with between 6.0% and 8.0% of salons failing yearly. Sin...purchase to read more.

    Additional Insights for the Hairdressing and Beauty Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Hairdressing and Beauty Services Industry are

  • Having contacts within key markets
  • Use of specialist equipment or facilities
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Real household discretionary income and Consumer sentiment index in the Hairdressing and Beauty Services industry impact industry performance..

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    What's in this report

    What is the Hairdressing and Beauty Services Industry?

    Industry operators primarily provide hairdressing or beauty services, such as manicures, pedicures, facials, skin treatments, tanning, make-up application, hair removal and non-medical hair restoration techniques.

    Industry Products
  • Haircutting, styling and colouring
  • Barber shop services
  • Hair removal services
  • Nail-care services
  • Skincare services
  • Indoor tanning and spray tan services
  • Other services
  • Industry Activities
  • Hairdressing and styling services
  • Barber shop operation
  • Beauty services
  • Electrolysis services (i.e. hair removal)
  • Make-up services
  • Nail care services
  • Skincare services
  • Tanning (solarium) services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household discretionary income
  • Consumer sentiment index
  • Health consciousness
  • Female population aged 18 and older

  • Current Performance
  • Necessity versus luxury
  • New markets
  • Profitability and innovation
  • Skills gap
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand conditions
  • Expanding beauty services
  • Organic growth
  • Table: Hairdressing and Beauty Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Hairdressing and Beauty Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Cosmetics and Toiletry Wholesaling
  • Cosmetics, Perfume and Toiletries Manufacturing
  • Furniture and Floor Covering Wholesaling
  • Household Appliance Wholesaling
  • Pharmaceuticals Wholesaling

  • Products & Services
  • Haircutting, styling and colouring
  • Nail-care services
  • Hair removal services
  • Barber shop services
  • Other services
  • Indoor tanning and spray tan services
  • Skincare services
  • Chart: Hairdressing and Beauty Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged 35 to 54
  • People aged 15 to 34
  • People aged 55 and over
  • Chart: Major Market Segmentation for the Hairdressing and Beauty Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Hairdressing and Beauty Services

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hairdressing and Beauty Services Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Hairdressing and Beauty Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Hairdressing and Beauty Services Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Backyard Operator
  • A hairdresser or beauty practitioner that runs a business out of their own home or in an informal setting. Some backyard operators may provide services for family or friends free of charge.
  • Parabens
  • Preservatives used in a variety of beauty products and foods to prevent the growth of bacteria and other microbes.
  • Skills Shortage
  • This occurs when demand for workers is greater than the supply of qualified workers available and willing to work under existing market conditions.
  • Wet Shave
  • A traditional shave, often carried out by a barber, where shaving soap is applied with a brush before shaving with a single-bladed razor.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Hairdressing and Beauty Services market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Hairdressing and Beauty Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Hairdressing and Beauty Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Hairdressing and Beauty Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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