The beauty salon market - Spain

1.2 The global and European market

In ****, the global spas and beauty salons market was valued at $***.** billion. The growth prospects are very promising in this sector, as analyses forecast a CAGR of *.*% over the period ****-****, to reach $***.** billion by ****. This strong growth is driven on the one hand by the recovery of household spending and the increasing importance attached to appearance and well-being in the most developed countries; on the other hand, the growth in the number of women in the industry is expected to increase.this strong growth is driven by the recovery in household spending and the increased emphasis on appearance and wellness in the most developed countries, and by the continued development of many emerging countries, where the upper and middle classes are increasingly making more disposable income available for wellness and personal care consumption.[***]

Global Spa & Beauty Salon Market World, ****-****, in billions of dollars Source: ****

the European cosmetics and fragrances market

The European market is the largest cosmetics market in the world, with a total market value of €** billion in ****. The main national markets are Germany (***).[***]

European market for cosmetics and perfumes Europe, ****, in % of value Source: ****

1.3 The Spanish market offers promising prospects

It is difficult to give a precise size of the beauty salon market in Spain, as the definition of the business is variable in scope. Nevertheless, the beauty salon market was estimated at *.** billion euros in ****, based on **,*** establishments (***).[***]

On the other hand, the outlook is good for the future of the beauty salon market: in fact, **% of professional aesthetics and hairdressing professionals predicted an increase in their activity in ****, thanks in part to the economic situation and the national increase in consumption.[***]

2.1 The importance of appearance in Spain

As evidenced by an indicator such as the consumption of beauty products, Spaniards globally place a high value on their appearance, which also helps to pull up the beauty salon market.

In fact, Spain is the *th largest European market for beauty products, growing for the fourth consecutive year and posting a +*% growth compared to ****, reaching * billion euros in ****. The average budget allocated per capita for beauty products thus stands at €***, *.*% higher than the European average at €***.[***]

Perfumes and cosmetics market Spain, ****-****, in billions Source: ****

2.2 Beauty salon performance driven by household spending on wellness and personal care

Following the crisis, household spending on wellness and personal care contracted sharply, including a -*.*% decline in ****. Nevertheless, the gradual economic recovery has also led to a gradual growth in spending on wellness and personal care, with growth rates of +**.*% in **** and +*.*% in ****. Thus, the average expenditure allocated to personal care reached €***.** per household in ****.[***]

Evolution of household spending on "Cuidado personal" Spain, ****-****, in % vs. previous year Source: ****

Average expenditure per household on "Cuidado personal "Spain, ****-****, in €/year Spain, ****-****, in €/year Source: ****

The average basket

Thus, the average basket when visiting a beauty salon has grown significantly over the past few years, increasing by +*% between **** and **** to reach **.** euros. In comparison, this average basket was only **.** euros in ****, almost **.*% less than in ****.[***]

Average basket during a visit to a beauty salon Spain, ****, in € Source: ****

finally, we can add to this increase in the average basket an increase in the frequency of visits. In ****, beauty salons in Spain received an average of ** customers per week.[***]

2.3 Lack of time for self-care

Many Spaniards have such a rhythm of life that they have little or no time to take care of themselves. This is especially true for women with children, who say they have little time to dedicate to themselves: **.*% of women with children say they have little time to take care of themselves, compared to **.*% of women without children. This leads them to visit beauty salons more regularly: **.*% of women with children say they have visited a beauty salon in the last * months, against **.*% of women without children. Among this particular target, the preferred treatments are pedicures (***). [***]

It should thus be noted that for this category of women with children in particular, beauty salons do not simply represent a beauty treatment, but also a moment apart devoted to themselves, a moment of rest and well-being. [***]

Use of beauty salons according to family situation Spain, ****, in % Source: ****

2.4 Hair removal habits in Spain

Since hair removal is one of the main services offered by beauty salons, it is interesting to consider more precisely the determinants of the demand for hair removal in Spain.

Hair removal is a widespread practice in Spain, as in ****, **.*% of women reported waxing. The most frequently affected body parts are the armpits (***). Moreover, this practice remains fairly common throughout the year: only *.*% of Spanish women say they stop depilating in winter.

The most common hair removal techniques are the razor (***). Waxing, a method used in an institute, concerns only **% of women. In addition, a large number of women wax only at home: only *.*% of women go to a beauty salon for their hair removal, and **% do it both at home and at the beauty salon. [***]

Most common hair removal methods Spain, ****, in % Source: ****

Preferred locations for hair removal Spain, ****, in Source: ****

2.5 Demand trend: masculinization of the clientele

More and more men are visiting beauty salons. This is due to a broader phenomenon: men are increasingly attentive to their appearance, including using more beauty products than before.

Thus, if in **** only *% of Spaniards admitted to using a facial care product, they were **% in **** and more than **% in ****. In ****, **% of Spaniards dedicate ** to **mn daily to personal care, proof that taking care of oneself and one's appearance is now fully integrated into the routine of men as well. [***]

It is therefore natural that men are increasingly frequenting beauty salons. The most common treatments requested are facials, scrubs, waxing or manicures/pedicures. [***]

3.1 Types of beauty salons

Beauty salon services can be offered by different types of structures:

Spas and beauty salons: there are approximately **,*** in Spain Dedicated spaces in hair salons: there are approximately **,*** of them Aesthetic medicine centers: there are approximately *,*** of them Spas integrated into hotels: there are about *** of them

Source: ****

Thus, we can see that the exact definition of a beauty salon has rather blurred boundaries, since other adjacent structures can provide the same type of services. This is all the more true as the spectrum of beauty care services is constantly widening, making the delimitation of the perimeter of beauty salons even more complex. (***).

Nevertheless, we can see several types, but above all several sizes of structures appearing on the beauty salon market. For the data below, we consider the category of activity provided by the INSE entitled "other personal services". It should be noted that the category includes other activities than beauty salons, such as laundries or hair salons. Nevertheless, it is interesting to give these figures as an indication to get an overview of the market structure.

It can be observed that the activity of "other personal services" is largely dominated by small structures: companies with less than * employees indeed ...

3.2 Beauty salon franchises

Franchises account for a significant portion of beauty salons in Spain, although there are also many independent salons. In ****, beauty salon franchises employed nearly **,*** people. Their turnover has been increasing since ****, and in **** reached ***.* million euros. [***]

Turnover of beauty salon franchises Spain, ****-****, in millions of euros Source: ****

In addition, it is interesting to note that Spanish beauty and aesthetics franchises export well abroad, as they come in *rd place behind fashion franchises and hotel/restaurant franchises. [***]

Distribution of Spanish franchises abroad Spain, ****, in number of brands Source: ****

3.3 The digitalization of the beauty sector

The beauty sector is no exception to the generalized trend of digitalization, and the main materialization of this phenomenon for beauty salons is the arrival of online applications and sites for booking treatments.rialization of this phenomenon for beauty salons is the arrival of online applications and websites for booking treatments. The main platforms offering this service in Spain are Treatwell and Bucmi.

Treatwell is one of the European leaders in this market, now present in ** European countries, just ** years after its creation in **** in London. Bucmi is the Spanish leader, which today relies on a network of **,*** treatments available for booking in *,*** beauty salons. Bucmi has now come under the control of majority shareholder Uala, an Italian firm.[***]

4.1 Type of services offered

Beauty salons offer a wide range of aesthetic services, from the most common and simple to more complex and specialized techniques:

Hair removal Manicure and pedicure Massages Hair treatments and hairstyling Anti-aging treatments Face and body care Slimming treatments Etc

The above-mentioned treatments are the most common ones offered by beauty salons. Nevertheless, some specialized institutes can offer treatments more oriented towards aesthetic medicine (***). [***]

Complementary offer

In addition to the core business of providing aesthetic treatments, many beauty salons also sell beauty products. In ****, beauty salon purchases of beauty products accounted for *.*% of the total cosmetics and fragrance market. Over the same year, sales in this distribution channel actually grew faster than the market average.

4.2 A wide range of prices, with an upward trend

Given the wide range of products on offer, it is difficult to provide a comprehensive overview of prices on the market.

Nevertheless, the consumer price index data provided by the INE allows us to obtain an overview of the price trend of beauty and aesthetic treatments. It can be seen that these prices have been increasing since ****, from an index of **.* in January **** to an index of ***.* in September ****.[***]

Consumer price index of beauty and aesthetic treatments Spain, ****-****, index *** Source: ****

we can also give the indicative prices below, obtained from the Treatwell website (***):

Source: ****

This indicative statement contains only the most classic and widespread treatments, and does not take into account more specialized or more advanced treatments such as aesthetic medicine.

4.3 Beauty salon equipment

Treatments requiring the use of technological equipment are becoming more frequent and in demand: it is estimated that in Spain they grew by +**% between **** and ****. The market for lasers and aesthetic devices is expected to grow strongly globally with a CAGR of +**.*% from **** to ****.[***]

Some of the most prevalent technologies in aesthetic practices include:

Intense Pulsed Light (***) permanent hair removal Cavitation: used for slimming as an alternative to liposuction, as it allows treatment without surgery. Cavitation is used to treat cellulite in targeted areas. Radiofrequency: used as an alternative to surgical facelifts, radiofrequency treatment can reduce wrinkles and swollen areas (***). Pressotherapy: used to relieve circulatory problems and water retention.

4.4 Supply trends

Blurred boundaries between different commercial and service activities

As previously mentioned, it is difficult to establish a strict perimeter for the activity ofas previously mentioned, it is difficult to establish a strict perimeter of the beauty salon activity because many different types of structures can offer the same type of aesthetic and cosmetic services. This becomes even more true as other activities, traditionally less adjacent, also launch their beauty salon concept. This is particularly the case of Primark, which opened in September **** in Seville a new store containing a cafeteria and a beauty salon, named Primark Beauty Studio. For this, Primark has partnered with the franchise Lashes & Go, and can thus offer manicure, pedicure, eyebrow and eyelash care services. [***]

Specialized institutes

In addition, we are also seeing the multiplication of very specialized institutes (***). [***]

5.1 Ordinance regulating the sanitary and hygienic conditions in hairdressing salons and beauty salons

The legislative and sanitary framework for the opening of an aesthetic center falls under the decentralized autonomous competencies, and as such, they may vary from one autonomous community to another. The example of the community of Madrid can be taken here, but it is important to refer to the texts in force in the autonomous community in question.

The health regulations for beauty salons are regulated by the Ordinance published in the Bulletin of ** June ****. [***] Among the main provisions of this ordinance, and in addition to the common standards of hygiene, we can mention the following:

The premises and facilities must be disinfected and rotted at least once a year The furniture must be made of washable material and the walls and floors must be smooth, impermeable and easy to disinfect In beauty salons, the hygiene service areas (***) must be separated between clients and employees All rooms where a treatment or service may take place must be equipped with a sink Have a changing area for staff Have a first aid kit in an easily accessible location

5.2 Steps to take to open a beauty salon

The opening of a beauty salon requires a certain number of administrative steps to be taken.

Declare your commercial activity (***) to the Department of Hacienda and to the Tax Office of Economic Activities Obtain the necessary license to open the institute: activity license and work license (***), proof of payment of municipal taxes, and an application file. The time required to obtain this license may vary from a few months to one year. For certain services, such as laser hair removal, it is also necessary to obtain a health establishment permit

6.1 Segmentation

• Groupe Rocher (Yves Rocher)
• D-uñas
• Treatwell