The global professional beauty services market is expected to grow at a CAGR of 6.5% during the forecast period of 2024 to 2032. Increasing urbanization, changes in lifestyle, a rise in the popularity of hair highlights, and an increase in salon visits are projected to contribute to the expansion of the professional beauty services industry in the future years. Salons and beauty service providers are emphasizing the use of innovative cosmetic products and cutting-edge technology to provide superior beauty treatments. Salons have increased their emphasis on hair maintenance, boosting consumer confidence and propensity to select hair coloring and related procedures. During the COVID-19 lockdowns, beauty services were among the first companies to close due to government rules prohibiting close customer-to-staff contact. After the lockdowns were lifted, an increase in demand for salon services was seen. Laser treatments and the use of vegan products by service providers are two current market developments in the professional beauty services industry.
Professional cosmetologists who are also licensed beauty care specialists provide beauty services for both men and women. Several segments comprise the professional beauty services industry, including hair salons, nail salons, skincare, and retailing. Numerous professional beauty salons market themselves as full-service establishments, including hair, nails, hair removal, tanning, and skin care services. Numerous service providers offer modern technology treatments for skin and hair problems. In addition, the increasing demand for eco-friendly and sustainably produced cosmetics reveals potential opportunities for professional beauty services that are projected to increase industry revenue during the projection period.
Consumers' increased awareness of their appearance is strengthening the professional beauty services sector. Market expansion is projected to be influenced by the expansion of the number of salons and spas and the promotion of various innovative beauty treatments by leading brand names. In addition, the trend of major hotel brands engaging their clients through the provision of premium services is projected to promote industry growth. In July 2023, for example, Indian Hotels Company Ltd, an India-based hotel company, established two new unisex salons in Bengaluru under the brand Niu&Nau, offering a comprehensive range of services encompassing skincare, hair, and beauty. The opening of the new salon reflects the increasing consumer demand for beauty services.
Increasing middle-class population and wages enable customers to spend more on discretionary goods. In addition, the growth in the number of working women raises their purchasing power. Working women devote greater attention to beauty and fashion trends, hence increasing the market need for professional beauty services. Increased expenditure on personal care goods and cosmetics, as well as the growing preference of the European populace for natural and organic products, is anticipated to positively impact the growth of the professional beauty services market. For example, Cosmetics Europe reported that by 2021, retail sales of personal care and cosmetics in Europe totaled $86.99 billion. It was shown that the largest markets in Europe were Germany ($14.79 billion), France ($13.05 billion), Italy ($11.53 billion), and the United Kingdom ($10.77 billion).
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The most prevalent sort of professional beauty service, hair service has a significant impact on the market expansion. The increase in popularity of hair coloring products, highlights, etc. drives the expansion of the hair service sector. In addition, growing worries about hair issues such as hair loss, dandruff, and dry hair are driving the need for hair services from professional beauty services. Shampoo, hair color, hair conditioner, hairstyle products, and hair oil are increasing in popularity among customers around the world. According to market research on professional beauty services, expanding fashion industry trends, advancements in the personal beauty care business, and increased awareness of hair care products are some of the factors driving the rapid rise of the hair service category.
The female demographic represents a sizable portion of the professional beauty services market, supported by the global increase in demand for feminine products and services. Women's services are often more expensive than men's services. Nonetheless, according to market figures, men's increased interest in skin care and grooming is also driving up demand for professional beauty services for men.
The professional beauty services industry has minimal oversight. Unlike other industries, the beauty industry is not governed by a strict set of rules established by a regulatory organization. In such a context, numerous enterprises enter the professional beauty sector each year in an attempt to take a portion of the existing market share. Given there are no established criteria for the offered services, some market participants attempt to benefit by delivering substandard service. Customers are typically unaware of the goods used when receiving hair or skin services, and service providers profit from using local or inexpensive products. These activities hinder the development of other legitimately prominent service providers.
Hair cutting and related services dominated the market in 2023. Under the umbrella of professional beauty treatments, including facials, waxing, hair cutting, hair coloring, and tanning, haircutting cannot be performed without the assistance of a professional. All other services are self-service. There are so many DIY (do-it-yourself) videos and publications for beauty services, but there are very few for haircutting. Individuals also prefer to have their hair styled by a professional, as they view it as the most essential aspect of their total appearance. Also, the ever-evolving trend in haircuts and hair color drives the demand for hair care services. Dandruff, baldness, and split ends are some of the most prevalent hair problems. Professional beauty service providers are developing natural, eco-friendly products and/or services to address the needs of their target customers.
Based on age group, the 26 to 45 years segment held the largest share of the professional beauty services market in 2023 and is predicted to maintain its dominance during the forecast period. The 18 to 25-year-old demographic is projected to witness the highest CAGR during the forecast period of 2024 to 2032. At the age bracket of 18 to 25 years, the skin structure is maturing. Many puberty-related hormonal changes can have profound effects on the skin during this age. These alterations manifest primarily on the face, chest, shoulders, and back. Many of these factors increase demand in this area for professional beauty services.
The global median age increased from 28 years in 2010 to 30 years in 2021. As life expectancy increases, it is anticipated that the need for professional beauty services would increase with time. Interestingly, developed nations like the United States, Japan, Germany, and Italy have older populations than emerging nations. As a result of increased purchasing power, the demand for beauty products and services in these nations will continue to rise. As people age, they require greater assistance in maintaining their appearance; hence, the demand for professional beauty services will continue to increase, particularly in these economies.
According to the market projection for professional beauty services, North America held the largest revenue share in 2021. The sizeable female labor force has increased the purchasing power of women in the region, resulting in an increase in expenditure on skin care, hair care, nail care, and professional beauty services. Throughout the past two decades, the U.S. has seen people from various areas, races, and genders settle in the country. In addition to bolstering the present business, multiculturalism has allowed a new set of firms to flourish. The professional beauty industry is one of the industries where demand across races has multiplied. The U.S. populace spends significantly more on beauty products and services than other nations. The trend is anticipated to continue with the expectation that the U.S. economy will enter a phase of stability/growth in the next years.
Demand for professional beauty services is on the rise in Asia Pacific, the fastest-growing market, as a result of a rise in awareness about personal care and key brands' continued investments in the region to expand product reach and offer value-added services. India's economy is experiencing one of its finest eras ever. India's economy is on the rise because of a growing economy, a stronger business environment, more government spending, and improved employment circumstances. As a result of growing purchasing power, Indians have begun to take their looks and appearance seriously. In recent years, other direct-to-consumer brands, like Plum, Mama Earth, and Beardo, have emerged. Unique and natural products/services designed just for men have been used by a number of domestic companies to compete with the industry's largest players.
Internationally renowned beauty salons and barber shops focus on expanding their geographic footprints. In addition, numerous industry participants use software to provide clients with an enhanced salon experience. Awesome Lash Studio, Cookie Cutters, Drybar, Fantastic Sams, Floyd's Barbershop, Great Clips, Inc., Lakme Salon, L'Oreal Professionnel, Regis Corporation, Seva Beauty, Sport Clips, The Lash Lounge, Tommy Gun's Original Barbershop, and Toni & Guy are notable professional beauty service providers.
As per our report, market fragmentation is likely to increase as a result of the availability of low-cost social media marketing and rent-a-space salons with favorable terms. To compete with the ever-expanding network of small and midsize firms, those wishing to enter, maintain a share of, or expand in the beauty services market will need to comprehend the causes of this fragmentation.
Some of the notable market developments include:
Companies that are successful at growing their product sales into a meaningful revenue stream are those that invest in three enablers: increasing the retail square footage, paying special attention to the visual merchandising of products, and offering a sufficient breadth of products. In exchange for carrying or solely using the brand's products, partnerships with brands can provide service providers with marketing and operational support, such as training on new products and processes, on-site promotion, and volume discounts.
Service providers must evaluate which brands and stores best correspond with their strategic objectives. Benefit Cosmetics, for instance, teamed with Ulta Beauty and Macy's to offer brow services in over 1,500 stores, thereby significantly increasing its geographic footprint.
Educating service providers on how to cross-sell products efficiently and providing them with incentives to do so is crucial. It may be awkward for service personnel to engage in "selling," but formal training with role-playing scenarios might assist them to overcome this reluctance. A well-structured incentive program that provides cash or non-financial recognition to employees who achieve sales goals can also raise profits and employee happiness.
