The Beauty Supply Store industry revenues have increased at an annualized 2.3% to $25.6 billion over the past five years. This increase can mostly be attributed to favorable macroeconomic conditions and an increase in consumer spending.
As companies expand to meet growing demand, the number of industry establishments has risen. Growing imports from the upstream Beauty Products Manufacturing industry have also boosted the availability of high-quality products domestically, particularly in high-end stores. As more high-end, imported products become available, industry profit will remain high. The growing economy enabled consumers to leverage greater disposable incomes to buy high-end products, resulting in a big margin for operators. This trend is expected to continue as manufacturers increase research and development expenditures and reformulate staple products that sell at higher price points.
Another increasing trend is environmentally friendly and cruelty-free products, likely spurring growth in new markets. While e-commerce is projected to be one of the fastest growing competitive threats to this industry, as consumers opt for the convenience and wide selection of products offered online.