Hair and beauty industry sees 35% growth as UK businesses prepare for further expansion
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The UK’s hair and beauty sector is experiencing remarkable growth, solidifying its status as a key contributor to the nation’s economy. With a 35% surge in growth for the year 2022, the industry has generated £4.4 billion in revenue and is poised for continued expansion in the next five years. This boom, which has placed hairdressing, barbering, and beauty businesses in a thriving position, comes at a time when UK small businesses across various sectors are also reporting optimistic outlooks.
A prominent player in the economy
Hair and beauty businesses have become a vital part of the UK economy, contributing significantly to local communities and generating substantial employment. Data highlights that there were 54% more hairdressing, barbering, and beauty businesses operating in 2020 than in 2015, underscoring the industry’s consistent growth and increasing popularity among consumers.
Despite this impressive expansion, the survival rate for hair and beauty enterprises remains a little lower than the average for UK businesses. While more than 60% of hair and beauty businesses successfully weather their early years, this rate is still slightly ahead of other sectors, which enjoy survival rates around 50% or less, depending on sectors.
Confidence on the rise
Recent data from the National Hair & Beauty Federation’s (NHBF) “State of the Industry” survey, conducted in July 2023, paints an optimistic picture. Nearly three-quarters of hair and beauty business owners expressed confidence in the long-term survival of their enterprises. Notably, 43% of respondents revealed plans to grow their businesses further, reflecting a forward-thinking mindset within the industry as they embrace expansion opportunities.
This positive sentiment mirrors trends seen across the broader UK small business landscape. As of the third quarter of 2023, 35% of UK small businesses across all sectors have reported growth for the next three-month period ending 30 September. Many enterprises, including those in hair and beauty, are now considering investing in new initiatives to sustain this growth into the final quarter of the year.
Embracing digital transformation and innovation
As the hair and beauty sector continues to flourish, there is an increasing focus on innovation, with businesses keen to capitalise on the potential of digitisation. Digital solutions, such as online booking systems and secure payment gateways, are proving essential for business owners, enabling them to streamline operations and provide clients with a seamless experience. Moreover, showcasing skills and services via social media platforms has allowed salons and individual practitioners to attract a broader clientele and build a stronger online presence.
For hairdressers and beauty therapists looking to modernise their businesses, embracing these digital tools can lead to significant operational efficiencies. By investing in technology that facilitates online payments and appointment scheduling, these businesses can reduce administrative burdens while offering clients greater convenience. The importance of digital transformation cannot be overstated in today’s competitive market, where customer expectations are increasingly shaped by technological advancements.
Expanding service offerings
In addition to adopting digital tools, many in the hair and beauty sector are seeking to grow by diversifying their services. Mobile services are becoming an increasingly popular option, with stylists and beauticians travelling directly to clients’ homes to offer treatments. This provides a unique value proposition, particularly for those with limited mobility or who prefer the convenience of at-home services.
However, business owners venturing into mobile services must ensure they seek business insurance for hairdressers first. Hairdressers and beauticians working in clients’ homes should consider business insurance that covers damages to third-party property. For example, accidents such as spills or breakages in a client’s home could prove costly without the right coverage in place.
Insurance is a vital consideration for business owners, especially as they expand into new areas of operation, and ensuring that all risks are adequately mitigated will help these businesses thrive in the long term.
Preparing for a promising future
With its continued growth, the hair and beauty industry has become a key driver of small business success in the UK. The sector is not only weathering the economic challenges of recent years but also thriving in the face of them. By learning from other businesses and sectors, embracing digitisation, and offering expanded services such as mobile treatments, hairdressers, barbers, and beauty therapists are well-equipped to sustain and grow their enterprises in the years to come.
As the final quarter of 2024 approaches, the UK’s hair and beauty businesses are better positioned than ever to seize opportunities, increase their market share, and continue contributing significantly to the economy. With an eye on future growth, the industry’s focus on innovation and service expansion will likely ensure its ongoing success.
