According to the research of beauty industry and market; globally, the beauty industry is briskly growing strong and only getting stronger. In 2020 the industry valued up to $438B and now in 2021 (currently) values $511B, with an annual compounded growth rate of 4.75% worldwide. And it is predicted to exceed $716B by 2025. The demand for beauty products and services is rapidly increasing right now and will continue so in the future too because of the fact that women seek to care more for themselves and are willing to sacrifice their budget for beauty. And as of now not only women but also men are getting more conscious about their physical appearances. People are getting more conscious about their body, skin and their looks which are convincing them to buy more beauty products even if they are expensive. This resulted multi-national beauty firms to produce a greater number of beauty products for different categories e.g. skin, hair, nails and body providing consumers more options to choose from and also increasing the competition in market.
Growth rate of Global Cosmetics Market size
The global cosmetics size was valued at $ 380 billion in 2019, and is projected to reach $463.5 billion by 2027, registering a CGAR of 5.3% from 2021 to 2027. Presently cosmetics have become an indispensable feature of modern lifestyle of individuals. In addition, growth in consciousness about external beauty along with individual’s internal intellect has become one of the major driving factors for use of cosmetics in the global market.
Scope of Beauty Industry
There is a high demand of beauty products and services all over the globe as now everyone is obsessed to look good. Even salons, beauty parlors & spas are making good profits.
Pros of Beauty Industry
• Fast growing: Beauty is one of the fastest-growing industries across the world which provides more opportunities for new entrepreneurs which results in good profits and also have many career options for professionals.
• Various career paths: There are various career paths in the beauty field such as make-up artistry, hair styling, nail professionals, colorist and many more.
• Self – Employment: There are many self-employed individuals in beauty industry who started they own businesses such as salons, spas, beauty parlors etc. There are many professionals who work independently or do freelancing.
• Own beauty brand: Many celebrities and entrepreneurs are coming up with their own beauty brands, which are also quite successful. Running manufacturing companies for beauty products or even retailing is an option for business as well.
• High demand: The demand for beauty products and services in the market is high, as people are becoming more beauty conscious and willing to spend their money for beauty. This provides some good beneficiaries to the new entrants as well as existing ones in this industry.
• Be a role model: As a business owner, you can inspire others especially women to change their lives. Create a community of followers and share your vision with the world.
• Innovation propel the industry: The beauty industry has barely changed in years. Now many firms and individuals are coming up with new innovative ideas such as organic and sustainable product and leading the industry and inspiring people.
Cons of Beauty Industry
While there are many benefits there are also cons involved in this industry.
• Upfront costs: There may be huge upfront cost for new beauty business, according to the Kauffman foundation the average cost of startup is $30k, for beauty brands it can be even more.
• Risk: There is huge financial risk ,9 out 0f 10 business fail, usually because there is no market for the product, or the timing is wrong. In 1979, Bristol Myers squibs touch of yogurt shampoo was a flop, but today, mother dirt’s line of probiotic skin and hair care products are flying off the shelves.
• Competition: The beauty business in particular has lots of competition, and unless you have a compelling story or a product that stands out from the rest, its easy to get lost in the crowd.
• Expensive distribution channels: If you are relying on Facebook or Instagram ads, you are going to spend a lot of money. This will also limit your organic growth potential. Relying on paid ads isn’t cost effective unless you have a good retail partner which can provide you some discount on your products without any guarantee of success.
Career paths in Beauty Industry
Makeup is an integral part of the glamour & entertainment industry. Even when it comes to Wedding or other events, requirement of a Makeup artist is inevitable. Makeup artists can start their own makeup studio and work independently or can even work under an organisation. Even starting an Academy for makeup learning courses is an option for Makeup Artists.
A hairstylist offers a wide range of beauty services, such as shampooing, cutting, colouring, styling of hair and also hair spa or treatment. They may advice clients on how to care for hair at home.
Sometimes referred to as nail technicians, these professionals work exclusively on nails and provide manicures, pedicures, polishing, and nail extensions to clients. Nail arts & Nail designs have been trending a lot these days. Job opportunities for nail technicians are also increasing as well as having your own Nail Studio is a great business idea as well.
Massages may be required for a variety of reasons, including treating painful ailments, decompressing tired and overworked muscles, reducing stress, rehabilitating sports injuries, and promoting general health. With the growth in the number of spas and salons, work opportunity for a Massage Therapist is increasing as well.
The rise of beauty bloggers sharing YouTube tutorials and posting about their favourite lipstick on Instagram continues the way consumers discover new products and engage with brands. Many cosmetic companies direct-to-consumer beauty brands have started eschewing traditional advertising altogether, in favour of tapping into the power of influencer marketing and brand ambassadors.
A colourist is someone who specializes in hair colour services and is generally hired by a salon. Most colourists take advanced training courses. The colour business is also uniquely lucrative. Many colour services command substantial fees.
An esthetician cleanses and beautifies the skin by giving facials, full-body treatments, and head and neck massages, as well makeup application. They may remove hair through waxing or, if properly trained, with laser treatments.
Barbers cut, trim, shampoo, and style hair mostly for male clients. They also may fit hairpieces and offer scalp treatments and facial shaving. In many States, barbers are licensed to colour, bleach, and highlight hair, and can offer permanent-wave services.
A salon/spa owner is responsible for all salon operations, physical and financial. Most salon owners have had some business management experience before investing in a salon. For the individual to purchase a salon, a capital investment and a good credit rating are required.
Today’s beauty professional is a member of the ever-expanding, ever-changing, ever-fascinating beauty industry. If you are innovative and ambitious, there is no limit to your potential. No other industry has such a constant demand for qualified, creative, well-trained graduates. None offers such bright opportunities for an individual to start a personal business and work toward financial independence. Your artistic skills and training give you the potential of changing peoples’ lives by making them look good and feel beautiful. With the right training, you could begin a career in fashion industry as makeup artist or stylist. You can choose to work behind the scenes in a movie, on a board way play, at a fashion show or perhaps your dream is to own your own salon or spa one day or become an instructor and inspire others to enter into the beauty business.
In conclusion Beauty Industry offers good job opportunities for Professionals and Wide Scope for those who want to start your own businesses.