If there is one thing that you can count on, it is the hair will continue to grow - for most people anyway - and barbers will be required to cut that hair. That is why the nationwide barber supply market it's currently so strong and will continue to strengthen in the coming decades as the population grows.
What are Barber Supplies?
When you see the term ‘barber supplies’ you may think of scissors and combs and that blue stuff that disinfects barber tools. But the nationwide barber supply market includes a lot more than just the tools used by barbers. In fact, the global market includes tools for beauticians, pedicurists, manicurists, massage therapists and more. In the United States, there are actually wholesale stores set up for hairstylists to buy their supplies. They have to show their cosmetologist license in order to purchase anything. As such, the market is still steady, and there is no reason to think that it will fall anytime soon.
Market Share among Barber and Beauty Shops
While the majority of the barber shops and beauty salons out there are privately owned and not affiliated with a chain or corporation, the major market share actually belongs to the chains, since each individual beauty shop only represents itself, and the chain is represented by all of their locations. In the United States, the market share is divided among four chain salons: Fantastic Sam’s, Great Clips, Sport Clips and Regis Corp. Around the world, there is no market share that is dominated by specific chains, but some of the best barber shops (according to magazine rating lists) are located outside of the United States, in areas that include London, Paris, Amsterdam, Rome, Berlin, Madrid, Stockholm and Oslo.
Major Products and Services in This Industry
There are a number of products and services within the global barber industry, comprising both the products and services that barber shops provide, as well as the products that barbers and beauticians use themselves. The services obviously include haircuts, hair dyes, styling, tinting, curling and other hair care services, as well as related services like eyebrow waxing and shaping, hair removal and potentially more, depending on what exactly the barber or beautician offers. Generally, the products such as the styling gel and hair dye are included in the price of the service itself. But barbers and beauticians also often sell physical hair care products to their customers. This allows them to make a little extra money, and it also allows for more revenue within the industry.
The State of the Barber Supply Market
Right now, the global barber supply market is estimated to have revenue of around $20 billion dollars. The industry is expected to grow by a little more than 3% per year during the years 2017 to 2022. The annual growth of the industry was on average 1.9% during the Years 2012 to 2017. As you might imagine, many barber shops and beauty salons have just a single employee. Even in beauty salons where several stylists are present, they are usually independent contractors and rent their styling booth. That is why there is an estimated 141,514 barber or beauty businesses with an employment estimate at 152,284.
The Competitive Outlook of Beauty and Barber Shops
How profitable a barber shop or beauty salon is depends on the particular skills of the individual running the establishment, or the outsourcing capability, in some cases. Several factors affect whether a particular barber shop will sink or swim in any given region. Longevity is obviously a factor, as businesses that have been around for a long time will have an established customer base and be known throughout the community. However, longevity cannot take the place of skill and customer service of the barber or beautician. In addition, marketing plays a big part and the competitive landscape of this industry.
Future Projections for the Barber and Beauty Salon Industry
This industry has been mostly steady over the past few years with a little bit of growth. This industry relies upon employment within the regions where the salons or shops are located, and with the reduction in unemployment there are good things happening for the industry. The growth over the next five years is expected to be 3.2% annually and experts predict that the revenue will rise to $58.7 billion dollars by the year 2019.
Profits are also going to rise, thanks to more employment and disposable income. In 2009, profits for this industry we're only at 1.9%, but in 2014, that number had risen to 5.7%.
Demographics of Customers within This Industry
You can divide demographics into two categories within this industry. Personal care services account for 90% of the sales within barbershops and beauty salons. This is obviously hair cutting, manicures, eyebrow waxes, facials, etc. Demographics show that the major consumers of these services are large households and customers age 35 to 64. On average, these groups spend 10 to 12% more than the average person on personal care services. Married couples whose children have moved out of the home spend even more, reaching 25% more than the average person. The aforementioned large households spend nearly 40% more than the average person.
The other part of the demographic is hair care products. The most loyal customers, spending the most money on hair care products, which account for 5 to 10% of the revenue from a barber shop & beauty salon, are the largest households, particularly parents with several girls in the house. Families with children at home spend 60% more than the average on hair care products. People aged 35 to 54 with children at home spend around 25% more than the average on hair care products and they are the controlling majority when it comes to buyers in this market.