The National Hair & Beauty Federation (NHBF) has released its latest report, Analysis of the Trends Within the Hair & Beauty Industry by Ethnicity Across the UK – the first of its kind to be undertaken in the industry. The report marks a significant milestone in the NHBF’s commitment to develop a comprehensive evidence base and better understand the trends within the industry.
The report, compiled by the Local Data Company, reports the following key findings:
- Growth Trends: The hair & beauty sector has experienced growth in locations with a larger proportion of Black, Black British, Caribbean, or African communities. However, the overall market share across Great Britain has declined slightly over the past five years.
- Asian Ethnic Group: Hair & beauty locations in Asian or Asian British postcode sectors have seen growth over the past five years. Nevertheless, their overall market share has reduced during the same period.
- All ethnic groups have experienced a slowdown in growth in 2022, as market saturation and increased competition for local spending have become more prominent factors.
- Regional Variations: The report highlights varying growth rates and challenges across different regions, with some areas showing greater resilience since the pandemic. (For example, Black, Black British, Caribbean and African in the East Midlands have been the most resilient since the pandemic whilst 9 out of 10 of the fastest declining postcodes are in Greater London).
- Survival Rates: Hair & beauty salons in White ethnic areas have shown and higher probability of surviving past their third anniversary, while Black, Black British, Caribbean and African outlets face lower survival rates, emphasising the need for targeted support for these small businesses.