The beauty salon market - Germany (2023)

1.2 The global market

The global market of hair salons has witnessed remarkable growth in recent years, reflecting a vibrant industry that caters to the evolving demands of individuals seeking wellness and beauty services. In ****, the market achieved a substantial valuation of $***.** billion. Projections for the coming years are equally promising, with an anticipated expansion from $***.** billion in **** to an impressive $***.** billion by ****, reflecting a Compound Annual Growth Rate (***) of *.**%.

Market size beauty salon market Germany, ****-**** Source: ****

Several factors are propelling the growth of this dynamic market. The rise of wellness tourism and increased demand from teenagers seeking personalized beauty experiences has significantly contributed to the sector's expansion. The influence of a growing senior population, coupled with the fast-paced lifestyles in metropolitan areas, has further bolstered the demand for spa and beauty services. Notably, consumers' willingness to invest in wellness and beauty products as a means of stress relief has fueled the market's progress. Innovative marketing strategies adopted by industry players have also played a pivotal role in capturing consumer attention. Shifting consumer attitudes towards personal care, combined with a desire to achieve a rejuvenated appearance and a sense of well-being, have driven the burgeoning spa and beauty salon market. These establishments cater to ...

1.3 The German market

The German market for beauty salons, segmented into hairdressing salons and cosmetic salons, reflects a diverse and growing industry specializing in hair and beauty care. The classification by the Federal Statistical Office of Germany includes hairdressing salons (***), each offering distinct services. Hairdressing salons provide a wide range of services including hair washing, cutting, coloring, styling, and beard grooming for men, women, and children. Cosmetic salons focus on facial massages, manicures, pedicures, makeup, and similar services. The revenue data for the period from **** to **** reveals a multifaceted dynamic in the market. Hairdressing salons generated revenue of *.** million EUR in ****, decreasing to *.** million EUR in ****. Beauty salons recorded revenues of *.** million EUR in ****, which decreased to *.** million EUR in ****. The combined revenues of hairdressing and beauty salons decreased from *.** million EUR in **** to *.** million EUR in ****.

Turnover of beauty salons Germany, ****-****, in million EUR Source: ****

Furthermore, according to forecasts, the beauty salon market is projected to experience growth in the coming years. It is anticipated that by the year ****, the revenue is expected to reach around **.** billion EUR, reflecting the industry's potential for expansion and transformation. [***] Nevertheless, the sector benefits from significant growth drivers, particularly digitalization, innovation, and specialization. Chain networks are ...

1.4 The effect of Covid-19 on the beauty salon market

The COVID-** pandemic profoundly impacted the beauty salon market in Germany, triggering a series of events that significantly reshaped the industry landscape. The response was swift and decisive, as on March **, ****, federal and state authorities collectively mandated the closure of hairdressing and cosmetic businesses nationwide. Initially intended to last for two weeks, the duration and scope of these closures varied among different state governments. A phased reopening strategy was adopted, with hairdressing and cosmetic salons gradually resuming operations.

The Berufsgenossenschaft für Gesundheitsdienst und Wohlfahrtspflege (***), the professional association for health and welfare services, established stringent occupational health and safety guidelines to minimize infection risks. These guidelines are aimed at both hairdressing and cosmetic salons, ensuring a safe environment for service providers and customers.

Data from the Zentralverband des Deutschen Friseurhandwerks (***) captured the initial shockwave felt across the industry. A rapid survey conducted during the third week of March **** indicated that more than **% of respondents considered the situation highly perilous for their businesses. Furthermore, approximately two-thirds of participants expressed concerns over substantial revenue declines exceeding **% for their salons.

The economic toll of the pandemic was evident in the financial reports. According to quarterly assessments, the first quarter of **** witnessed a staggering **.*% decline ...

2.1 Interrelated industries

The beauty salon market in Germany is intricately connected to a network of interrelated industries, forming a dynamic ecosystem that supports its growth, innovation, and diversity. These industries collectively contribute to the comprehensive beauty experience that customers seek, as well as the overall economic impact of the market. Let's explore some of these interrelated industries and their connection to the beauty salon sector: Cosmetics and Skincare Products Industry: The cosmetics and skin care products industry is closely intertwined with the beauty salon market. Revenue from skin and facial care products has been consistently growing, reflecting the demand for high-quality skincare treatments. From rejuvenating facials to specialized treatments, beauty salons rely on a wide range of skincare products to cater to their client's needs. The revenue growth in this segment reflects the emphasis on maintaining healthy and radiant skin. In ****, skin and facial care product revenue is estimated to be around *.** billion euros.

Revenue from skin and facial care products Germany, ****-****, in billion EUR Source: GfK; IKW; IRI  

Decorative Cosmetics Industry:  Revenue from decorative cosmetics is another crucial aspect of the beauty salon ecosystem. Using makeup and decorative cosmetics is integral to many beauty treatments, including makeovers, bridal looks, and special ...

2.2 Overview: Unveiling Consumer Habits and Preferences in Germany's Beauty Industry

In the intricate tapestry of the beauty salon market in Germany, consumer consumption habits and preferences emerge as vibrant threads weaving together the dynamics of demand, trends, and the evolving landscape. These patterns not only reflect customers' evolving preferences but also offer a glimpse into the transformative trends that are molding the industry. Let's embark on a comprehensive exploration of these habits and preferences within the context of the beauty salon market, leveraging a wealth of data to highlight the prevailing trends that are shaping the industry's trajectory.Enduring Fascination with Cosmetics and Make-up: The allure of cosmetics and make-up remains an unwavering passion that consistently pulses within the German populace. From **** to ****, the numbers underscore an intriguing narrative: over *.*% of individuals showcase an intense interest in cosmetics, painting a picture of an engaged and enthusiastic audience. This enthusiasm is further mirrored in the approximately **.*% to **.*% of the population displaying moderate interest. This steadfast allure for cosmetics is more than just skin-deep; it is a poignant indicator of the resilient demand for the spectrum of beauty services salons ardently offer.

Interest of the population in Germany in cosmetics and make-up Germany, ****-****, in % Source: ****

Aesthetic Consciousness and Grooming as Virtues: A ...

2.3 Consumer profile and consumption habits

The German beauty salon market is a vibrant tapestry woven with diverse consumer preferences and habits. This intricate portrait unveils a captivating blend of demographics, motivations, and treatment preferences that define the landscape of beauty salon consumption. Leveraging a wealth of data, we explore the consumer profile and their consumption habits, offering insights into the heart of this dynamic market.

Demographics and Frequency of Usage: A striking revelation emerges as **% of women aged ** to ** years visit a beauty salon at least twice a year. Among the younger demographic (***), this habit is embraced by a commendable **%. Predominantly, urban settings with populations exceeding ***,*** inhabitants become the nurturing ground for this indulgence, with many patrons calling these vibrant locales home. [***]

Loyal Patronage and Studio Engagement: An overwhelming majority of **% of all beauticians pride themselves on exclusively serving loyal patrons. Only a modest **% of studios cater to a select number of walk-in clients alongside their loyal customer base. [***]

Diverse Treatment Preferences and Motivations: The array of treatment offerings in beauty salons reflects the ever-evolving preferences of consumers. Among these options, facial treatments, manicures, pedicures, medical foot care, apparatus-based facial and body treatments, permanent makeup/ microblading, and injections each find their niche.

Consumers are drawn to ...

2.4 Client Expectations in Beauty Salons

In the intricate realm of beauty salons, where personal care meets self-indulgence, customers' expectations weave a tapestry of demands, desires, and anticipations. As the modern beauty landscape evolves, these expectations shape the dynamics that underpin the relationships between beauty salons and their discerning patrons. Delving into this realm unveils a vivid spectrum of needs and desires that illuminate the convergence of consumer preferences and the ever-evolving beauty industry.

Navigating Change: Reasons for Shifting Studios

Change is a dynamic thread that courses through the beauty salon tapestry. Clients seek new horizons, and their motivations for switching studios reflect a quest for the perfect blend of expertise and ambiance. Foremost among these motives is the pursuit of contentment, with dissatisfaction from prior treatments driving **% of respondents to embark on a new beauty journey. Change in personnel also plays a pivotal role, as **% seek fresh faces and novel experiences. Additionally, aspirations for specific treatments drive **% of clients to explore studios offering the bespoke services they covet.

Criteria for Selecting a Studio Germany, ****, in % Source: ****

Reservations and Rationales: The Decision Not to Engage

Yet, as the realm of beauty salons extends its allure, some stand on the threshold, evaluating the journey within. Factors that deter ...

2.5 Emerging Trends in the Beauty Salon Market: A Glimpse into the Future

The landscape of beauty salons is ever-evolving, driven by the ebb and flow of trends that shape consumer preferences and industry practices. Within this dynamic arena, several trends are gaining prominence, ushering in a new era of beauty and wellness. Let's delve into these trends, supported by insightful data, to understand their impact on beauticians and consumers comprehensively.

Trend expectations of beauticians and customers Germany, ****, in % Source: ****

*. Use of Invasive Methods: In a quest for transformation, beauticians are at the forefront of embracing invasive methods. A notable **% of professionals see the value in these treatments, which often yield swift and dramatic results. However, consumers exhibit a more tempered response, with only **% expressing interest. This reveals a divergence in viewpoints, indicating that while professionals are eager to offer such treatments, consumers approach them more cautiously.

*. Homemade Cosmetics: The allure of homemade cosmetics is evident as both beauticians (***) engage with this trend. Crafting personalized concoctions empowers beauty enthusiasts to tailor products to their unique needs. While beauticians seem more open to exploring the potential of homemade cosmetics, the cautious response from consumers indicates a measured interest in venturing beyond commercial offerings.

*. Use of Apparative Treatments: The future holds a common ...

3.1 Macroeconomic structure of the sector

The beauty salon sector in Germany is a vibrant and multifaceted industry that encompasses both hairdressing and cosmetic salons. Over the years, this sector has demonstrated its ability to adapt to changing market dynamics, as reflected in the fluctuations in company numbers, turnover, and employment figures. Between **** and ****, the landscape of the beauty salon sector underwent noticeable shifts in terms of company numbers: Hairdressing salons saw a gradual increase from **,*** establishments in **** to a peak of **,*** in ****. However, there was a slight decline to **,*** by ****. Similarly, beauty salons followed a similar trajectory, rising from **,*** in **** to a peak of **,*** in ****, before receding to **,*** in ****. The combined total of hairdressing and beauty salons grew from **,*** in **** to **,*** in ****, subsequently decreasing to **,*** by ****.

Number of companies in the beauty salon sector in Germany Germany, ****-****, in total number of companie Source: ****

Hairdressing salons generated a turnover of *.** million EUR in ****, which experienced an upward trajectory, reaching *.** million EUR in ****. However, this trend reversed, resulting in a decrease to *.** million EUR by ****. On the other hand, beauty salons showcased consistent growth in turnover, rising from *.** million EUR in **** to a peak of *.** million EUR in ****. Yet, this positive trend reversed, leading to a decrease ...

3.2 The main actors and competition

By definition, a beauty salon is an establishment offering aesthetic care, not medical care. Therefore, the types of establishments intervening in the market are multiple and do not all have the same core business. The illustration below shows this diversity of actors and provides an overview of the types of actors involved in the beauty salon market.

Beauty salons are differentiated by their level of specialization.

Generalist institutes: These institutes offer all types of personal care. Specialized institutes: The specialization of care services is a fundamental trend in the sector. Thus, beauty bars are proliferating: nail bar, eyebrow bar, smile bar, make-up bar, etc. These concepts combine speed, convenience (***).

Around */* of all beauty salon users also buy products at the salon (***) are the most common reasons for deciding against buying a studio. **% of beauticians are convinced that better online offers minimize their sales opportunities, but only *% of women buy professional facial care products online. [***]

Competition in the German market for beauty salons is multifaceted, with various players vying for customer attention and loyalty. Depending on their location and the range of services they offer, cosmetic salons face competition from several quarters, including perfumeries with in-house beauty cabins, medical foot care specialists, ...

3.3 Value chain of the hairdressing and beauty salon sectors

The value chain of the hairdressing and beauty salon sectors in Germany involves a multifaceted interplay of various stages and players, each contributing to the functioning and competitiveness of the industry.

Upstream Industries and Suppliers: The manufacturers and wholesalers of cosmetic and hair care products are at the foundation of this value chain. These products are pivotal in enabling beauty salons to provide diverse services. Cosmetic products, ranging from hair care items to skincare essentials, are procured by salons to ensure the quality and variety of treatments they offer. For instance, hairdressing salons primarily source their cosmetic products directly from manufacturers, with a significant portion (***) being acquired this way. In some instances, around **% of products are also obtained through wholesalers. Alongside cosmetics, suppliers also offer a selection of tools, machinery, and salon furnishings that are integral to the salon's operational efficiency.

Supplier Dependencies and Business Influence: While the beauty salon sector enjoys a relatively low supplier dependency, this dynamic can significantly differ for chain businesses and franchise establishments. The influence and dependency on suppliers can be notably pronounced in such cases. Mainly, when parent companies are also suppliers or possess control over supplier selection, the role of suppliers in the value ...

3.4 Major companies

Prominent companies in the hairdressing and beauty salon sector:

Source: ****

4.1 Typology of the offer and prices of the services proposed in beauty salons

Within the dynamic realm of beauty salons, many services await those seeking tailored care and rejuvenation. From classic treatments to specialized therapies, diverse options are offered to enhance overall well-being. Presented below is a comprehensive overview of the services typically available in the beauty salon market, accompanied by succinct descriptions and indicative price ranges. It is important to note that prices may vary based on factors such as geographical location, type of salon, and specific nuances of the services.

Source: ****

4.2 Price evolution

The beauty salon industry, with its diverse range of services and products, is subject to various market dynamics that contribute to the evolution of prices over time. The pricing trends within this sector are influenced by many factors, including consumer preferences, market competition, economic conditions, and even trends in cosmetic products.

Examining the historical trajectory of prices in the beauty salon market provides insights into how specific beauty products' costs have changed. This analysis helps us understand consumer behavior and sheds light on the industry's response to changing market conditions.

Let's delve into the development of consumer prices for selected decorative cosmetics and perfume products over the years:

Development of consumer prices for selected decorative cosmetics and perfume products Germany, **** - ****, in % Source: ****

Lip or Lip Balm: Fluctuations have marked the journey of lip or lip balm prices. Starting in **** with a relatively stable price of *.**, there was a slight dip in ****, reflecting a decrease of -*.**%. The following year, prices bounced back to *.**, showing resilience. In ****, the price experienced a modest increase of *.**, which continued with a slight rise of *.** in ****. This trend of gradual increments persisted in **** with a minor increase of *.**. However, the most significant change was observed ...

4.3 Bautician traineeship

The landscape of beautician traineeships in Germany has witnessed a dynamic journey over the years, reflecting the evolving beauty industry and the aspirations of individuals seeking to establish their careers in this field. As indicated by the data, the number of beautician trainees in Germany has experienced fluctuations, influenced by various factors such as economic conditions, industry trends, and shifting preferences among prospective professionals.

Training Companies and Opportunities: Aspiring beauticians embark on a professional development journey through traineeships from diverse training companies across Germany. These training programs are crucial gateways to gaining hands-on experience, honing skills, and imbibing the necessary expertise for success in the beauty industry. The traineeships are often conducted in various settings, including salons, spas, wellness centers, and other beauty establishments.

Trainee Numbers and Industry Trends: The fluctuating numbers of beautician trainees reflect the beauty industry's dynamic nature and aspiring professionals' responsiveness to changing trends. The consistent growth in trainees from **** to **** might indicate an increasing interest in pursuing a career in the beauty sector. During this period, the industry witnessed an influx of new talents eager to explore various facets of beauty, from skincare and makeup to wellness and aesthetics.

Number of beautician trainees in Germany Germany, ...

4.4 Key Challenges Facing Germany's Beauty Salon Sector

As the beauty salon market in Germany strides towards an ever-evolving future, a tapestry of challenges and opportunities interweaves to shape the industry's trajectory. Within this intricate landscape, several pivotal challenges stand out, each influencing the course of the market's evolution.

Rising Costs and Sustainability Mandates

The ascent of operational expenses, including the relentless surge in energy costs (***) compels salons to embrace eco-conscious practices and sustainable treatments, ushering in a new era of responsible beauty services.

Navigating the Post-COVID Era

The enduring impacts of the COVID-** pandemic (***) continue to reverberate across the beauty salon market. Lingering uncertainties, health protocols, and cautious consumer behavior challenge the industry's resilience and ability to fully regain customer trust.

Complexity in the Digital Age

The alluring influence of online competition, driven by the rise of beauty influencers (***), reshapes the landscape of beauty salons. The virtual realm demands salons to adeptly navigate the digital sphere, leveraging technology to engage with customers, enhance brand visibility, and stand out amidst the digital cacophony.

Shortage of Skilled Workers

The scarcity of skilled workers (***) poses a poignant challenge for the beauty salon market. A pool of adept professionals is pivotal to delivering exceptional services and sustaining the sector's growth. The industry's ...

5.1 Cosmetic regulations

EU Cosmetics Regulation: The EU Cosmetics Regulation (***) stands as a cornerstone for the cosmetics industry across the European Union, including Germany. It introduces crucial provisions that directly impact manufacturers, importers, and distributors of cosmetic products. Within the context of beauty salons:

Safety Assessment: The EU Cosmetics Regulation mandates that all cosmetic products undergo a rigorous safety assessment before being introduced to the market. This assessment is a critical aspect of ensuring the safety of products used within beauty salon treatments. Product Information File (***) for each cosmetic product. This file contains scientific and technical data that substantiates the safety of the product, vital for informed decision-making in beauty treatments. Labelling Requirements: Labels on cosmetic products hold pivotal importance within beauty salons. The EU Cosmetics Regulation necessitates accurate and transparent labeling, ensuring clients and professionals have clear information about ingredients, usage instructions, and potential risks.

German Cosmetics Ordinance (***). This ordinance adds a local context to the broader EU framework, with implications specifically relevant to the German beauty salon market:

Notification to Authorities: For beauty salon operators, including cosmetic products as part of treatments, the KVO mandates manufacturers and importers to notify German competent authorities before introducing products to the market. This notification mechanism ...

5.2 Workplace Safety Regulations

In the bustling landscape of the beauty salon market in Germany, the significance of occupational health and safety cannot be overstated. The foundation of this safety net lies in the country's robust framework of labor protection laws, including the Occupational Health and Safety Act (***) and its specific regulations. These regulations provide a crucial safeguard for professionals, employees, and clients engaged in beauty salon operations.

Occupational Health and Safety Act (***): The Occupational Health and Safety Act, often referred to as the "ArbSchG," serves as a cornerstone of safety within workplaces, including beauty salons. This legislation focuses on safeguarding the well-being of employees, ensuring a secure environment, and minimizing occupational risks. When considering the beauty salon market:

Risk Assessment: The ArbSchG mandates the assessment and management of workplace risks. In the context of beauty salons, this translates to conducting thorough evaluations of potential hazards associated with cosmetic treatments, equipment usage, and chemical substances. Health and Safety Measures: The act requires employers, including beauty salon proprietors, to implement suitable health and safety measures to mitigate identified risks. This encompasses adopting protective measures during treatments, ensuring proper ventilation, and providing necessary personal protective equipment (***). Employee Protection: The legislation places a strong emphasis on the protection ...

6.1 Company segmentation

• Esthetic Center
• WAX IN THE CITY GmbH
• hairfree GmbH