The National Hair & Beauty Federation (NHBF) has released its latest report, analysis of the trends within the hair & beauty industry by ethnicity across the UK.

It’s the first of its kind to be undertaken in the industry, and the report marks a significant milestone in the NHBF’s commitment to develop a comprehensive evidence base and better understand the trends within the industry.

The report, compiled by the local data company, reports the following key findings:

Growth Trends: The Hair & Beauty Sector has experienced growth in locations with a larger proportion of Black, Black British, Caribbean, or African communities. However, the overall market share across Great Britain has declined slightly over the past five years.

Asian Ethnic Group: Hair & beauty locations in Asian or Asian British postcode sectors have seen growth over the past five years. Nevertheless, their overall market share has reduced during the same period. All ethnic groups have experienced a slowdown in growth in 2022, as market saturation and increased competition for local spending have become more prominent factors.

Regional Variations: The report highlights varying growth rates and challenges across different regions, with some areas showing greater resilience since the pandemic. (for example, Black, Black British, Caribbean and African in the East Midlands have been the most resilient since the pandemic whilst 9 out of 10 of the fastest declining postcodes are in Greater London).
Survival rates: hair & beauty salons in White Ethnic areas have shown and higher probability of surviving past their third anniversary, While Black, Black British, Caribbean and African outlets face lower survival rates, emphasising the need for targeted support for these small businesses.

Understanding Trends
Richard Lambert, NHBF Chief Executive says, this is a report that we have wanted to undertake for several years and so I am very proud that this has come to fruition. One of the principal roles of an industry representative organisation is to develop a robust evidence base to understand and illustrate the trends within its sector. This data is invaluable in supporting the organisations lobbying of government on behalf of its members, backing up the arguments as much as demonstrating the sectors value and impact to the economy.

He continues, this is by no means a comprehensive survey, it’s a starting point. We are now looking for further funding to conduct more detailed research to get a better understanding of these industry sub-sectors, as well as the specific obstacles different ethnic groups are encountering and how we can support them.

Partnering with LDC
This report is the first step in addressing what the NHBF believe is an important gap in our knowledge. There are numerous businesses catering to specific ethnic communities, but little readily-available data exists to understand their proportion in the market or the distribution of different community groups within the UK. To bridge this information gap, the NHBF partnered with the LDC to conduct an in-depth analysis of the sector’s ethnic makeup. The LDC utilized data from the census and its proprietary location data for various business categories to identify geographical areas with larger proportions of minority ethnic communities. From this analysis, a detailed picture emerged, showcasing the correlation between the density of independent hairdressers and the volume of ethnic group communities.

Starting Point
The report offers a crucial starting point in understanding the ethnic mix within the Hair & Beauty Sector. However, it is important to note that the analysis and data provided do not constitute a census of ethnic salon businesses across the UK. Instead, it presents valuable insights into the location and type of businesses predominantly found in areas with a higher density of ethnic communities.

The NHBF believe that this report will be instrumental in enhancing industry knowledge, informing policy decisions, and advocating effectively on behalf of its members. As we continue our mission to support and promote the Hair & Beauty Sector, the NHBF remains committed to furthering research efforts and gathering data to empower informed decision-making.

Visit NHBF for more info here.