The rise of social media marketing has seen a monumental growth in opportunities for businesses working within the health and beauty industry.
Not only that, but e-commerce has given an extra boom to a sector that already had a strong foothold. When you factor in that people were eager to recommence their beauty routines after pandemic lock-downs, you can see just a few of the reasons why healthy and beauty franchises are booming.
Nowadays, beauty trends are changing at a speed that’s never been witnessed before and this has led to many companies taking advantage of this new world of possibilities.
Thus, within this sector, there is a wealth of new excellent franchise opportunities that not only provide productive and efficient systems, but also bring the possibility of large profits.
When it comes to the advantages of franchises over independent businesses, the benefits are obvious. For one, you have brand reputation, where franchises are already known to consumers.
Thus, when those consumers are looking for the ideal place to purchase a beauty product or service, these are the places they turn to first.
There is also the fact that you join a team that has done it all before. Instead of stepping into the wilderness of an independent business, you are joining one that has worked to ensure they have processes and systems that make your life easier.
Franchises also often provide training and on-going support, which is invaluable if you are new to the business world. On top of that, there is the extra marketing spend which can help your health and beauty franchise get a solid start.
Here are some facts and trends about the industry, which will give you an even greater insight into the sector.
- According to information from Statista, in Australia, the beauty market had an estimated revenue of $7,756 million in 2021. Predictions for the end of 2022 are set to see that number increase even higher. The future looks bright for the beauty industry.
- TakeATumble reported that Australians spend roughly $22 billion on beauty products per year. It’s a staggering number, but more conceivable when you consider that the cosmetic procedure market is worth around $1bn in revenue per year. Its report added: “The COVID-19 restrictions impacted the spending spree in a lot of beauty and personal care sectors in 2021, including hair care, make-up services, and massages. Namely, in the fourth quarter of last year, hair salons expanded their revenue by 84%, while beauty salons rapidly delivered an upturn in income by 112% compared to the same quarter in 2020.”
- Although there has been a rise in the amount of dollars men spend on their looks, women are still the leaders in spending. In fact, experts believe that in Australia, women usually spend about $3,600 on the beauty industry each year. The majority of Australian employers in the beauty industry are also women.
- The Personal Care segment is the most prominent beauty industry sector in Australia according to Statista. Reporting this, TakeATumble stated: “In 2021, it noted revenue of $3,391 million, with an estimated growth of 5.8% in the next four years, i.e., income is expected to reach $3,737 million by 2026”.
- The health and beauty industry hasn’t been immune to the ecommerce boom, with online shopping worth over 35 percent to all beauty sales in 2021.
- TakeATumble’s review of the industry discussed its strength and position moving forward. It read: “Australian beauty industry statistics show that the market is stronger than ever before. And while online shopping for beauty products has still not reached the capacity of other eCommerce markers, it is poised to take over as the dominant sales channel opening even more opportunities for cosmetic brands, such as beauty subscription services, the use of AI and delivery of personalised skincare products.”
- Hair salon revenue increased by 84% due to COVID-19 restrictions. This represented a massive bounce back after restrictions were lifted.
- The beauty industry generates around $5bn in revenue annually in Australia. It is an established part of the country’s economy and one that has shown its resilience during economic downturns.
- In 2017, over 35,000 Beauty Therapists were employed in Australia. This is just one of the many areas where there are franchise opportunities in the country.
- In any given four-week period, 8 billion Australians make at least one online purchase. There has been a growth in the amount of people who now purchase their cosmetics via the internet. With online buying now being the norm, this is a number that is likely to increase going forward.
- According to the Bureau of Labor Statistics, there are nearly one million people employed in the beauty industry in Australia. There is a huge variety in the type of job you can have here and as an entrepreneur, there is a huge choice in the type of business you can invests in.
- According to a recent report, global cosmetic products market was valued at around $774 billion in 2017 and is expected to reach approximately $1256 billion in 2024. People care about their image and that doesn’t look like it is about to change any time soon.