Health and beauty is a trillion-dollar global industry. With no signs of slowing down, this market has plenty of room for entrepreneurs to engage a new group of consumers with dollars to spend on looking and feeling their best. Learn more about the health and beauty industry growth rate and what to expect in 2022.
There is a new global emphasis on looking and feeling great. After many months of sheltering at home, there is a burgeoning appreciation for wellbeing, self-care, beauty, and grooming. As a result, the health and beauty industry is experiencing explosive growth. The beauty market alone was a whopping $511 billion in 2021, and by 2025 is projected to be valued at $716.6 billion. Women spend about $313 a month on beauty products, while men spend $244. Skincare and haircare products, which appeal to both women and men, made up 40% and 21% respectively of sales of all beauty products, with 85% of those purchases made at a brick-and-mortar store.
This growth highlights the essential nature of the health and beauty industry even in tough economies. During the economic downturn of 2008, consumers deemed the beauty industry essential, breaking their piggy banks for products and services. And though the beauty industry took losses at the beginning of the COVID-19 pandemic, business is rebounding, with consumer spending on personal care expected to grow an annual rate of 8.1% until 2025.
See How We Grow
A new year brings new hope, new resolutions, and new directions in beauty and health. Here are some hot trends to watch:
More inclusive pricing: As the beauty market expands to encompass new consumers, businesses are smartly adjusting their price points to appeal to a broader base. Better prices attract younger customers as well as the uninitiated experimenting with new products and services.
E-commerce: Two factors have played into the growth of e-commerce: social media and the pandemic. Younger consumers continue to drive this emerging source of revenue.
Personalization: Tailor-made experiences drive sales. 80% of consumers will make a purchase if a retailer offers a customized approach. As vendors increasingly cater to customers’ needs and wants instead of just offering a one-size-fits-all approach, the health and beauty industry grows.
Digitized appointments: Modern health and beauty brands offer clients appointment-setting tools online so they can conveniently and easily book appointments for services anywhere, anytime.
Creating an experience: Beyond the demand for products and services is the desire from consumers for a relaxing experience. 78% of consumers cite regular beauty and health care as part of what makes life feel normal and safe. An appointment at a spa or salon can include soothing surroundings, music, and beverages to round out a calming visit.
Men: In 2022, men’s chunk of the personal care industry is set to expand to $166 billion. More brands are cashing in on this trend, offering male-centered products and services for skin, hair, and beard care.
Consider a Scissors & Scotch Franchise
As a savvy businessperson, understanding beauty and health industry trends is important for your success. Finding a business that’s both familiar and fresh is challenging, but a Scissors & Scotch barbershop franchise is looking for entrepreneurs to help us grow. Let us guide you through how to start a barbershop.
Instead of going it alone, you can be your own boss with one of the hottest emerging franchise opportunities around. At Scissors & Scotch, we’ve put in the work to know what’s trending and what men want, from grooming services to a fully stocked bar.
Apply now now to learn more about owning a Scissors & Scotch franchise.