The Growing Beauty Industry and Its Relationship To Franchising

The U.S. beauty industry is booming, with sales in the prestige beauty market increasing by 14% year-over-year to reach $31.7 billion in 2023, according to Circana. In comparison, mass market beauty sales grew by 6%. This impressive growth presents a significant opportunity for franchising within the beauty sector.

The Rise of Prestige Beauty

The prestige beauty market, which includes high-end department stores and specialty retailers, has been a major growth driver. Makeup, particularly lip products like tinted lip oils and balms, saw the fastest growth in sales. Skincare products, especially face serums and creams, also performed well. These trends show that consumers are increasingly interested in high-quality, effective beauty products.

Although most major brands in this space, like Sephora, don’t offer franchising opportunities, there are plenty of other brands that do.

Opportunities for Franchising

This growth in the beauty industry creates a great opportunity for franchising. Brands like Pigtails & Crewcuts, which provides quality haircuts for children in a family-friendly environment, are well-positioned to take advantage of this trend. With over 80 locations, Pigtails & Crewcuts is making a name for itself in the children's haircare market, which remains relatively untapped compared to other beauty segments.

Michelle Holliman, vice president of franchise development at Pigtails & Crewcuts, highlighted the potential for continued growth in a recent interview. “The beauty industry is continuing its incredible growth, indicating a strong future for our franchise,” she said. “There is so much white space in the children's haircut space, leaving it wide open for Pigtails & Crewcuts to be the industry leader.” 

The broader self-care and wellness industry, including services like hair removal, lash extensions and therapeutic massages, is also experiencing significant growth. The self-care market is expected to reach $450 billion, with expectations of topping $646 billion this year. This surge is due to increased consumer awareness and prioritization of self-care, a trend that the pandemic has accelerated.

Franchises in the self-care sector are thriving because these services require personal contact and cannot be easily replaced by online shopping. The global market for services like waxing, for example, is expected to grow significantly, driven by the increasing demand for personalized services.

A brand taking advantage of this demand is Uni K Wax. The franchise not only capitalizes on the trend, but stands out by enhancing the waxing process for clients, staff and franchisees with their unique ElastiKWax™. Made from beeswax and pine tree resin, this natural wax reduces pain and allows for faster, simultaneous waxing of multiple areas. Each Uni K Wax studio features a Wax Lab™ for precise wax preparation and personalized wax warmers for clients. Certified waxers from Uni K University ensure high-quality results.

The Future of Beauty Franchising

The future looks bright for beauty franchising. As consumers continue to prioritize high-quality beauty products and self-care services, franchises offering innovative, personalized services are well-positioned for success. Flexibility, creative thinking and high consumer engagement will be crucial for continued growth in this dynamic industry.

Franchises like Pigtails & Crewcuts and Uni K Wax are leading the way, showing the potential for growth and innovation in the beauty and self-care sectors. As the beauty industry evolves, franchising will play an increasingly important role in meeting consumer demands and shaping the future of beauty and wellness.

To learn more about opportunities in the prestige beauty market, check out these 1851 articles: 

• Beyond Sephora: Beauty-Focused Retail Franchises To Consider for 2024
• The Top 10 Emerging Beauty Franchises Ready to Make Over the Industry
• The Top Beauty and Grooming Franchises