Hair & Beauty Industry
The Hair and Beauty industry is a $3.8 billion Industry.1 The hairdressing product industry is broken into two segments, Mass market product brands, such as those found generally in supermarket and pharmacies; and Professional market product brands which are found in professional salons such as Hairhouse Warehouse. These professional product ranges are also known as Salon Only brands.
In November 2014, 81,453 people were employed in the Hairdressing Industry, of which 86.2% were female and 57.2% of hairdressers were full time employees. The main age group is 35-44 years (24.8%) and the median age is currently 31 years (compared to 40 years for all other occupations).2 Hairhouse Warehouse is the largest employer of hairdressers in Australia, with an estimated 1600 plus stylists employed across it's 140 plus stores.
The Industry derives most of its revenue from households. It is estimated that women account for about 60% of total expenditure on hairdressing given their greater use of higher value added services and overall more frequent use of these services over the year.
The industry has an estimated 21,267 establishments, with 34.6% in NSW, followed by Victoria 24.4% and Queensland 19.8%.
The industry is considered a mature industry, meaning that it is an established industry, and it is projected to see further growth year on year.
It is a fragmented industry dominated by independent players, however, there are some strong brands in the market that are slowly increasing their market share, such as Hairhouse Warehouse. It currently holds 4.4% Market share, double the next largest brand in the market. This market share is set to grow to 6% within 2 to 3 years. While it is expected that the industry will see some consolidation, this is good news for large and sustainable brands in the market, allowing them to take market share from other players.
The Industry is expected to see consistent growth over the next 4 years of 1.6%. Hairhouse Warehouse is performing above this growth rate.
1. IbisWorld Hair & Beauty Industry Report