Franchises in the Health & Beauty Industry
The health and beauty industry provides services relevant to aesthetics and overall wellness. Health and beauty franchises cover a wide range of products and services that help customers look and feel their best. The need for health and beauty franchises is growing and the scope is expanding as new technologies and specialized services are implemented. The United States is also one of the largest beauty and personal care markets.
How much do salons, spas, and other beauty concepts make?
Popular segments of the industry include: spas, salons, or specialized services like lash studios and blow-dry salons. According to IBISWorld,
- Hair salons’ revenue exceeds $46 billion yearly in the U.S.
- Beauty, cosmetics and fragrance stores are estimated at $24 billion in yearly revenue
- Massage services were estimated at $17 billion revenue yearly;
- Personal waxing & nails created $16 billion;
- Tanning salons made around $4 billion.
All sectors within Health and Beauty generated a total revenue approximately around $ 118 billion. Massage services’ annual growth rate over the previous five years is 7.3%, one of the fastest growing franchise opportunities in the U.S. In the 2019 State of Small Business survey by Guidant Financial, health and beauty (along with fitness) was ranked the most popular franchise industry.
Visa Franchise Industry Analysis
At Visa Franchise, we have reviewed over 2,900 businesses and of the Health and Beauty franchise currently on our platform, we found that the investment range starts around $15,000 up to $1,714,370 for a single location.. Many health and beauty concepts require specialized equipment and supplies for their service offerings. In our research, the average royalty fee takes up 5.9% of gross revenue, and the average marketing fee is 2% of gross revenue.
Health & Beauty Franchising Trends
While beauty salons are traditionally marketed toward women, one of the fastest growing consumers in the industry are men. The counterpart of beauty salons are barbershops. Barbershops started offering a variety of styling services including haircuts, beard trimmings, and more.
5In the past, men’s grooming was viewed as a luxury reserved for those of a certain age, wealth, and class. Over time, men’s barbershops and franchises have developed to provide for men of all backgrounds. According to Allied Market Research, the men’s personal care industry is predicted to hit $166 billion worldwide by 2022, with an approximate annual growth rate of 5.4% from 2016 to 2022.