Shape up: Rising wage expenses will be an increased burden for operators, hurting industry profit margins

Over the five years to 2017, the Barber Shops industry has performed well. While there has not been a significant or notable uptick in demand for industry services over the past five years, the increasing population has contributed to revenue growth by providing barber shops with a larger customer base. Furthermore, barbers are generating more money per person in 2017 than they did in 2012, as specialized services are becoming more popular, which has also contributed to revenue growth. Over the five years to 2022, the industry is expected to continue growing, though at a slightly decelerated rate...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22
Market Share of Companies

Industry Threats & Opportunities

  • The increasing population has contributed to revenue growth by providing barber shops with a larger customer base
  • The rise of the internet and social media has accelerated the speed in which hairstyle trends travel
  • The use of social media platforms is expected to continue rising and aiding the industry
  • Industry Report - Industry Key Buyers Chapter

    The Barber Shops industry exhibits a low level of market share concentration. No individual business is expected to hold a market share greater than 5.0%. Although Sport Clips controls a substantial share of the market at 18.3%, it operates through a franchise model and technically represents the combined market share of hundreds of individual businesses operating under a common brand. Even within a single-location barber shop, several independent businesses may be operating; often, barber shop owners rent booths to independent operators rather than taking on formal employees. Nonemploying businesses in the industry represent about 97.0% of establishments and generate four-fifths of industry revenue...purchase to read more.

    Additional Insights for the Barber Shops Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Barber Shops Industry are

  • Business expertise of operators
  • Having a loyal customer base
  • Maintenance of excellent customer relations
  • IBISWorld analysts also discuss how external factors such as Number of adults aged 20 to 64 and Per capita disposable income in the Barber Shops industry impact industry performance..

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    What's in this report

    What is the Barber Shops Industry?

    This industry includes men’s hairstylist shops primarily engaged in cutting, trimming and styling men’s and boys’ hair. Furthermore, barber shops shave and trim men’s beards. This industry does not include companies that primarily offer training in barbering or hairstyling.

    Industry Products
  • Basic haircuts
  • Haircuts with shave
  • Other hair services
  • Merchandise
  • Industry Activities
  • Hair cutting
  • Beard trimming
  • Hair styling
  • Shampooing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of adults aged 20 to 64
  • Per capita disposable income
  • Number of households
  • Business sentiment index
  • Prime rate

  • Current Performance
  • Stable demand
  • Specialized services
  • Profit
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Social media continues to fuel trends
  • Urban escape
  • Profit and industry structure
  • Table: Barber Shops Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Barber Shops Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Cosmetic & Beauty Products Manufacturing
  • Hand Tool & Cutlery Manufacturing
  • Household Furniture Manufacturing
  • Trade & Technical Schools

  • Products & Services
  • Basic haircuts
  • Haircuts with shave
  • Other hair services
  • Merchandise
  • Other
  • Chart: Barber Shops Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 45 to 54
  • Consumers aged 35 to 44
  • Consumers under age 35
  • Consumers aged 55 to 64
  • Consumers aged 65 and over
  • Chart: Major Market Segmentation for the Barber Shops Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Rent and utilities
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Barber Shops

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Barber Shops Industry

  • Industry Globalization
    Sport Clips Inc.,
  • Table: Sport Clips Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Barber Shops Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Barber Shops Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Population (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A hair cutting establishment primarily engaged in cutting and grooming men's and boy's hair.
  • Buzz Cut
  • A haircut style where the hair is cut short primarily by clippers
  • Clipper
  • A small appliance used to cut or trim hair.
  • What Our Customers Say

    Why buy this report?

    The Barber Shops Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Barber Shops:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Barber Shops market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Barber Shops, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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