Habic publishes Irish hair and beauty market report
The Hair and Beauty Industry Confederation (Habic) has published a new report that gives a detailed economic analysis of the market in Ireland.
The organisation commissioned economist Jim Power to research and deliver the Economic Value of Hair & Beauty Market in Ireland report, which found that turnover for the hair and beauty sector was estimated at €2.6bn in 2019.
It also found that total employment in the hair and beauty sector was equivalent to 2.1% of total employment in the economy at the end of 2019; and its total contribution to GDP was estimated at €2.79bn.
It noted that the hair and beauty industry black market is worth €400m, with a cost to the Exchequer of €55m; and that the impact of Covid-19 15-week closure led to €580m in lost turnover.
Key challenges identified in the report include the increase in the VAT rate from 9% to 13.5% for hairdressing services in Budget 2019. In its pre-Budget submission Habic is calling for a 5% VAT rate.
Other policy supports that were found to be urgently required include the need to tackle the growing and very damaging black market; national apprenticeship supports and the re-introduction of training rates; supports for CPD programmes and a formal education qualification review process; and reform of the commercial rent system, which it said should become a policy priority for the new Government.
“It’s been a very different year for Habic than what we had planned at launch last October 2019,” said Margaret O’Rourke Doherty, CEO, Habic. “An unprecedented and unexpected shockwave engulfed our industry on so many levels as our colleagues dealt with business, personal and social concerns and challenges. Habic responded and continues to do so, while all the time remaining focused on the strategic tasks that we set out to accomplish in our Statement of Strategy at launch.
“Habic prides itself on taking a factual and well-researched approach, and it is with great pride that we release this landmark and ground-breaking report, which is Ireland’s first and only comprehensive economic report of its kind. This report will raise the bar within the industry and at Government level.”
The report was sponsored by Professional Beauty, Wella Professionals, L'Oréal Professional Products, CIDESCO, Phorest, iTEC and VTCT.
