General Barbershop Industry

The barbershop industry is a subsection of the beauty industry that is specifically geared towards men. Although barbershops are inherently cosmetic, the association of cosmetics with femininity leads to an interesting marketing strategy where barbershops are seen as a simple necessity for cleanliness, in contrast to the apparent frivolity of spas and beauty salons. As a result, there is a narrow range of services that barber shops offer, and many are limited to the cutting, trimming, and shaving of men’s hairs and beards. Some high end barber shops offer styling services as well, but most local barbershops stick to the basics. Like the other sub industries within the beauty and health industry, the barbershop market is highly fragmented, with no companies owning more than 5% of the market share. However, major players include Sports Clips Inc. and Rooster Men’s Grooming Center. Currently, the barbershop industry is valued at about $5 billion and there are over 100,000 operating businesses within the industry.

Beauty Industry Trends

As the COVID-19 pandemic shut down all nonessential businesses, businesses in the beauty and health industry were not left unscathed. As these nonessential businesses were allowed to resume business with the reopening of the economy, stringent health guidelines regarding masks and social distancing limited the amount of customers that these businesses could serve, a blow to already razor thin margins. But before the pandemic, a growing economy and rise in discretionary spending allowed for this industry to expand magnificently, with more consumers opting to choose high-end, quality services for more money than try to save money on these types of luxury services. Furthermore, trends in “self-care” and the rising prominence of the health and wellness industry generated renewed interest in these types of services. As the pandemic subsides, the economy begins to recover, and household income levels continue to rise, the industry is expected to rebound.