Despite economic downturns in the last five to ten years, the beauty industry is currently on the rise. Social media posts share videos of rainbow hair or color changing hair, inspiring people to change their looks. The beauty industry should no longer be assumed a luxury that can be dismissed in the event of economic struggle. Most importantly, the types of services provided are ones that not only make people feel good about themselves but ones that make people healthier. When considering the beauty industry as a whole, it is important to assess not just hair and makeup aspects but to also incorporate an analysis of the products used.
When looking at the figures, the research indicates ongoing growth. In 2012, the Direct Selling Association of Australia noted that anti-ageing and skin renewal were the primary reason people purchased beauty products. In addition, they noted that the expected growth in the industry for 2013-1014 would be 2.9%. Although that was six years ago, the industry has not only met those numbers but has globally exceeded them. The same report also notes that even during the economic downturn in 2008, consumers continued spending despite becoming more cost conscious. As incomes continue to rise, so will the revenue of the beauty industry.
In 2017, the global beauty market soared. In 2015, the US industry generated $56.2 billion dollars. Skin care is expected to have an $11 billion revenue by 2018. The key drivers of this growth and revenue are organic products produced in a sustainable manner, products for the aging population, products and services for the young children millennial moms, and men’s products and services.
Baby boomers represent one of the main demographics to reach in order to grow a beauty business. Miskn, beauty business provider of acne treatment in Perth, Australia states, “Boomers care about their looks and health. With the number of adults over age sixty-five set to double between 2000 and 2050, catering to these extremely smart and tech-savvy customers is one of the main ways to grow a business.” Providing skin care to the aging population is one way for a beauty business to try to gain an advantage over its competitors.
In addition, it’s important to keep in mind that the beauty industry massage services. Again, this is where catering to the boomer generation can be an asset. Massage has long been known to be a complementary approach to use in conjunction with traditional medication. With people becoming more amenable to holistic approaches to health, demand for these services is expected to increase.
Finally, organic products and sustainable products are set to be a final area of growth. Tying together with the skin care concerns of baby boomers as well as their continued interest in massage services, organic and sustainable products will likely be a necessity for anyone entering the beauty market. Keeping in mind that most salons derive almost one fifth of their revenue from products, choosing ones that meet the future desires of customers will help drive up business.
Overall, the beauty industry is set to be one of the rising economic stars of the early 2020’s. With the right marketing approach the up-and-coming clientele demographics, a business can be successful for the long term.
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