Bad hair day: Profit falls as industry players trim prices to remain competitive

The Hairdressing and Beauty Services industry has declined over the past five years. A decline in household discretionary income and volatile consumer sentiment have constrained consumer expenditure and industry demand over the period. However, rising image consciousness and population growth have supported demand for beauty treatment services. Industry revenue is expected to fall at an annualised 0.2% over the five years through 2019-20, to $6.8 billion. This includes an expected revenue decline of 0.5% in the current year as negative consumer sentiment limits consumer expenditure on industry services.Industry segments have had varying degrees of success over the past five years. The haircutting and styling segment has slightly increased as a share of revenue over the more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • High competition has put downward pressure on prices, forcing many inefficient operators to exit
  • Rising male grooming trends have supported the industry over the past five years
  • Projected increases in household discretionary income will boost industry revenue
  • Industry Report - Starting a New Business Chapter

    The industry is characterised by low barriers to entry, as indicated by the high number of small businesses, many of which are non-employing. Little capital is required to establish a hairdressing or beauty services business, with small operators primarily reliant on labour. However, some hairdressing items can come with significant price tags, a set of speciality scissors can cost up to $4,000. The lack of major players means that new firms are able to enter the industry with relative ease. However, the high level of internal competition can make it difficult for entrants to establish a loyal customer base.Industry regulation is light, permitting easy entry for new operators. Rel...purchase to read more.

    Additional Insights for the Hairdressing and Beauty Services Industry

    IBISWorld has determined the most important Key Success Factors for the Hairdressing and Beauty Services 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 and styling
  • Hair removal
  • Non-clinical massage
  • Nail-care services
  • Skincare
  • Tanning
  • 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
  • Wages and underpayment investigations
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand conditions
  • Growth opportunities
  • 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 and styling
  • Hair removal
  • Nail-care services
  • Non-clinical massage
  • Tanning
  • Skincare
  • Other 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
  • Internal competition
  • External 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
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • 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.
  • 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?

    The Hairdressing and Beauty Services market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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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