The U.S. Health & Beauty industry is divided in different segments: hair care, skin care, cosmetics, perfumes, deodorants, oral hygiene, and other. In addition, the industry covers a diverse array of personal products, beauty appliances, services, and related functions such as packaging and supply chain. American women spend on average $3,000 on cosmetics per year while men spend over the same amount on health and beauty products.
The industry generates around $90 billion in revenue. The beauty services sector employs over 670,000 in the U.S.
Health & Beauty is one of the sectors that has been rapidly growing within the retail industry. As any other industry, companies within it have to innovate and adapt in order to stay competitive. Innovations not only in creating but also in distributing and displaying the products are being develop in the marketplace to maximize consumer’s experience. In addition to innovation, there has been an increase in awareness on healthy lifestyles, making personal care, cosmetic, health, and organic products essential to achieve healthy habits. Inclusive beauty has also been a major consumer demand. Companies are now investing in and expanding inclusive beauty products to attend all type of consumers. For example, male personal care and beauty routine, people of color, teens and children, gender-neutral beauty products, and more.
The Paid-in-Full Rate is when the SBA loan is fully paid off by the small business owner including interest, indicating financial strength.
The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the small business owner.
For every 9 SBA loans fully paid including interest, 1 SBA loan was unable to be paid back, or defaulted.
-SBA Loan Data from 2010-2019
-Non-Franchise Businesses taken into account: 11,687
The health and beauty industry provides services relevant to aesthetics and overall wellness. Health and beauty franchises cover a wide range of products and services that help customers look and feel their best. The need for health and beauty franchises is growing and the scope is expanding as new technologies and specialized services are implemented. The United States is also one of the largest beauty and personal care markets.
Popular segments of the industry include: spas, salons, or specialized services like lash studios and blow-dry salons. According to IBISWorld,
All sectors within Health and Beauty generated a total revenue approximately around $ 118 billion. Massage services’ annual growth rate over the previous five years is 7.3%, one of the fastest growing franchise opportunities in the U.S. In the 2019 State of Small Business survey by Guidant Financial, health and beauty (along with fitness) was ranked the most popular franchise industry.
Through our online platform Vetted Biz, we have reviewed over 2,900 businesses and of the Health and Beauty franchise currently on our platform, we found that the investment range starts around $15,000 up to $1,714,370 for a single location. Many health and beauty concepts require specialized equipment and supplies for their service offerings. In our research, the average royalty fee takes up 5.9% of gross revenue, and the average marketing fee is 2% of gross revenue.
While beauty salons are traditionally marketed toward women, one of the fastest growing consumers in the industry are men. The counterpart of beauty salons are barbershops. Barbershops started offering a variety of styling services including haircuts, beard trimmings, and more.
5In the past, men’s grooming was viewed as a luxury reserved for those of a certain age, wealth, and class. Over time, men’s barbershops and franchises have developed to provide for men of all backgrounds. According to Allied Market Research, the men’s personal care industry is predicted to hit $166 billion worldwide by 2022, with an approximate annual growth rate of 5.4% from 2016 to 2022.
Average Beauty Franchise Industry Percentage Fees
Standard Beauty Franchise Industry Investment
This metric is the standard industry investment amount for a single unit franchise investment in this industry. Our research and analytics team analyzed over 98 franchise concept investment breakdowns in order to calculate this figure.
The Paid-in-Full Rate is when the SBA loan is fully paid off by the franchisee including interest, indicating financial strength.
The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the franchisee.
For every 16 SBA franchise loans fully paid including interest, 1 SBA loan was unable to be paid back, or defaulted.
-SBA Loan Data from 2010-2019
-Franchise Businesses taken into account: 3,275
Learn more about the Health & Beauty Industry
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