key statistics hair beauty

8 key statistics every hair and beauty franchise buyer should know

Inside Franchise Business

Key statistics from the hair and beauty sector reveal opportunities, despite recent challenging times.

1. $8.6 billion

That’s the expected revenue for the hairdressing services industry in 2028, reflecting an annual 1.6 per cent rise.

2. $4.7 billion

Australian hair and beauty businesses will see wages rise at about 2.1 per cent each year until the wage bill reaches $4.7 billion in 2028.

3. 13%

Profit margins will lift from the current 11.7 percent to 13 per cent in five years time.

4. 64%

Haircutting and styling plays a significant role in the sector, accounting for a massive 64 per cent of business.

5. 10%

Hair removal is the second biggest slice of the hair and beauty pie, at just 10 per cent of business.

6. 9.5%

Just pipped to the second place slot by hairdressing, the popularity of nail care services puts this offer in third place.

7. 3.4%

Real household discretionary income is one of the main drivers for this industry, and it sits at 3.4 per cent. However it is expected to slump this year.

8. 2.4%

Women are the sectors most important consumers and this year the female population will grow by 2.4 per cent, to reach 10,572,030 people.

According to the IBISWorld report, Hairdressing and Beauty Services in Australia, January 2023, industry revenue is set to bounce back when economic conditions improve and there is population growth.

Expect wages to rise as salons employ highly-qualified team members.

“Salons will increasingly offer a combination of hairdressing and beauty products and services,” says report author Ekatarina Ezhova.

“Many salons will promote premium services and broaden product sales to boost spending per customer and better differentiate their offerings from DIY treatments. Salons will be actively bundling complementary products and services together,” she points out.

And the role of social media will rise in importance as salons embrace marketing techniques to attract a younger cohort (15-34).

Check out How to succeed in a hair and beauty business.

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