Report Identifies Top Trends & Challenges for Salons Worldwide

The integration of AI and other technology is the top trend in salons and barbershops around the world, while a skilled workforce shortage remains an ongoing challenge.

That’s according to Allied Market Research, which surveyed large group and franchise salon and barbershop models around the globe for its recent report Professional Beauty Services Market: Trends, Challenges, and Opportunities 2021-2031.

The report found that the beauty services market is expanding rapidly, especially in urban areas and in Asia-Pacific and Latin America where disposable incomes are on the rise.

The growing demand for beauty services is fueled most notably by trend-setting content produced by users of Instagram and TikTok.

Here are the main takeaways.

Top Trends in Beauty & Grooming

Technology. AI is revolutionizing the industry, giving beauty businesses new opportunities with online consultations, virtual try-ons and AI diagnostic tools.

This goes hand-in-hand with another top trend, personalized services, in which providers are putting a greater focus on customized treatments for their clients.

Growth Opportunity: Beauty businesses that prioritize innovation and embrace technology are better positioned to succeed, especially among tech-savvy clients.

Sustainability. As consumers worldwide put an increasingly higher value on sustainability in their purchases, the beauty services market has responded by adopting eco-friendly options in everything from packaging to product ingredients to business practices.

Growth Opportunity: Transitioning to sustainable product lines and investing in sustainable business practices can help salons, barbershops, and beauty brands capitalize on this market trend. 

Social Media. Instagram and TikTok are powerful platforms where beauty trends are born through influencers and enthusiasts sharing their experiences with products and services.

Growth Opportunity: Collaborating with influencers or other brands has become as important as establishing a business’ own presence on social media.

Top Challenges in Beauty & Grooming

Regulatory Compliance. With the growing market in services comes the need for additional regulations for hygiene, safety, sanitation, and product usage. These regulations hit harder for smaller businesses.

Competition. The salon and barbershop space has always been highly competitive, and with beauty and grooming services expanding worldwide, new players are constantly entering the market. 

Shortage of Skilled Workforce. The demand for licensed cosmetology professionals remains high, with salons and barbershops competing for skilled workers in their areas. 

Businesses with steady retention and hiring rates are those who invest in education and training programs, according to the report.

Economic Fluctuations. “Non-essential” services are the first to get cut from a budget when the economy takes a downturn, so salons and barbershops around the world are the first to feel it when their local economies stagnate.

The following beauty and grooming brands participated in this report: