Babtac predicts boom in growth for the beauty industry
Two years on from the start of the pandemic, Babtac (British Association of Beauty Therapy & Cosmetology) has found several indications of potential for positive growth in the beauty industry, which could have business booming.
While there were numerous negative impacts on beauty services during the pandemic, there were some positive impacts that the beauty industry can now use to their advantage post-pandemic.
When salons reopened in June 2020, there was a massive 2,250% rise in bookings in comparison to pre-pandemic figures, said Babtac. This figure only continued to rise as restrictions were further eased, proving that there is no shortage of demand for beauty services.
Surge in beauty start-ups
To accommodate to this increased demand post pandemic, there has been a surge in beauty start-ups. Babtac research showed that more than 3,500 businesses with the term ‘beauty’ in their name were set up in 2020, compared to less than 500 in 2014. A massive 7,083 hairdressing and beauty treatment businesses launched in 2020.
Digital innovation in beauty
With many salons and clinics implementing systems for virtual consultations during the lockdowns, this has resulted in access to entire new customer bases nationwide. Improved online booking systems, live video masterclasses and e-commerce offerings have elevated customer experience and prove how adaptable the beauty sector can be.
Boosted social media
During the pandemic, social media became an even more essential asset for businesses to stay in touch and communicate with the clients, which saw much of the beauty sector seize this opportunity for engagement. Businesses that were not social media driven pre-pandemic used this as a chance to increase interest and revenue.
According to Babtac, all these factors indicate the potential for a beauty boom, even though many salons are still dealing with some of the negative repercussions of the pandemic. These include...
Loss of earnings
Beauty and hair professionals were found to have lost on average £11,603 in earnings, by April 2021. 40% of these salons said that they lost between 20-49% of their revenue in December 2021, which is usually the industry's busiest month of the year.
By the end of April 2021, 39% of eligible beauty and wellbeing roles were furloughed and 20% of beauty business owners also said that they had to make some staff redundancies.
Not only are there rising costs due to inflation, but due to increased hygiene and cleanliness expectations from customers post-pandemic, this has also resulted in increased financial outlay for salon staff. Here are some ways to help cut cost in your salon or spa.
Lesley Blair MBE, chief executive and chair of Babtac, said: "Having suffered ravaging economic effects and limited government support during the pandemic, the beauty sector is only just getting back on its feet. We can also not ignore the impact the rising cost of living is about to have on our industry. Almost half of beauty businesses say they have recently been forced to cut other business costs, including wages or reducing opening hours, to afford sky-high utility bills.
She continued, "Despite these limitations, which Babtac is continuing to fight tirelessly against, there are several signs our sector is adapting and evolving. We're seeing rising demand, particularly in wellbeing and skincare treatments, an increase in beauty start-ups and unprecedented innovation. Those businesses that can successfully capitalise on these opportunities are set for a booming period ahead, against a backdrop of greater public support and a newfound appreciation for the work we do."
Do you think that there is a beauty boom on the horizon? Let us know in the comments…