Hairdressing and Barber Franchises in Australia - Industry Market Research Report

Bad hair day: Lockdowns, competition and economic uncertainty force franchises to take a haircut

The Hairdressing and Barber Franchises industry has been hit hard during the COVID-19 pandemic, with loss of revenue, redundancies and increased competition from DIY treatments all having long-term consequences for industry franchises. Throughout the pandemic, consumers resorted to cutting and styling their own hair or having someone at home do it for them, but many found it difficult to match the quality offered by a professional stylist or barber. Volatile discretionary incomes and consumer sentiment have further restricted demand for hairdressing and barber services in recent years. While demand for haircuts remains steady during periods of economic downturn, treatments and styling are considered discretionary and therefore more sensitive to movements in household income and consumer sentiment. Overall, industry revenue is expected to decline by an annualised 4.6% through the end of 2022-23, to total $438.8 million. This trend includes an anticipated drop of 3.9% in 2022-23 as consumers face a cost-of-living crisis.

The industry encompasses franchised establishments that primarily offer hair-care services. This includes salons and barber shops that provide haircutting, hair colouring, hair styling and other hair treatments. Revenue generated from haircare product retailing is also included in the industry. The industry excludes companies that primarily offer training in barbering or hairstyling.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry's key players and their market shares.