With the global spas and salons market expected to reach approximately $191bn by 2024, it’s time to get in the beauty business
In the age of Instagram, our obsession with idealized beauty – think Kim Kardashian’s internet-breaking cover for Paper Magazine – the need to look our very best is proving to be lucrative. According to a new report from retail analytics firm Edited, the global beauty industry is valued at $532bn and is on a rapid uplift.
It also stated that cosmetics and personal-care businesses that have embraced social media influencers and brand ambassadors are now reaping the benefits.
Another study by the International Society of Aesthetic Plastic Procedure (ISAPs) ranks the U.S. top when it comes to countries that have the most plastic surgery procedures, clocking in at a whopping 4,217,862 cosmetic procedures performed per year.
The amount of money we are willing to spend combined with the fact that there is no age limit on vanity means the marketplace is ripe for beauty franchises.
A report by Zion Market Research states that the global spas and beauty market was valued at around $128.59bn in 2017, and is expected to reach approximately $190.81bn by 2024, growing at a compound annual growth rate (CAGR) of slightly above 5.80 per cent between 2018 and 2024.
This is also good news if you want to look for a relatively recession-proof franchise venture. For instance, the IBISWorld Industry Report 2017 Hair & Nail Salons in the U.S. states that the demand for beauty services is expected to continue rising to $62bn by 2022.
So, you are sold on the idea of a beauty business but now you face the dilemma of whether to start one from scratch or invest in a franchise.
The Bureau of Labor Statistics has discovered that about 20 per cent of all businesses in the U.S. close after the first two years of operation and a little over 38 per cent after four years. Although this varies based on the type of business, it is still something to consider when making your decision. The general rule of thumb is that a franchise business is less of a risk, given its proven track record.
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