HABIC (Hair and Beauty Industry Confederation) recently commissioned leading Economist, Jim Power to deliver a detailed economic analysis of the Hair and Beauty industry in Ireland.
The Hair and Beauty industry is a rapidly growing sector in the Irish economy. It is a dynamic sector that is constantly evolving, changing, and adapting to customer needs. HABIC is the representative body for all sectors of the industry.
HABIC’s vision is ‘to be part of a revolution in which the Hair and Beauty industry is highly supported, included, and truly valued by all stakeholders as a key industry that makes a significant economic impact to the national GDP and labour force.’
The report identifies Key Challenges facing the industry including:
- The Direct impact of COVID-19 and physical distancing on the sector.
- The increase in the VAT rate from 9 per cent to 13.5 per cent for hairdressing services in Budget 2019.
- The ongoing growth of the black market for hair and beauty services, estimated as between 30 percent and 50 per cent of the turnover of the legitimate sector and is worth at least €400 million and costs the Exchequer at least €55 million. This issue must be addressed by the authorities to protect legitimate operators and create a level playing field.
- The abolition of the ‘training rate’ in March 2019.
- The more challenging economic environment post-COVID.
- The growth of environmental customer preferences.
- Creating an education and training model of excellence in the sector.
Also addressed in the report are employment levels within the Hair & Beauty sector in Ireland, the economic and financial contribution of the industry and recent trends in the sector.
You can read a copy of the report on the HABIC website