The US-Israeli war with no end in sight has significantly impacted the global supply chain. Beyond just Dubai and Middle-eastern hubs, businesses across the globe stand affected. Besides this, the region is also causing continuous chaos in the travel industry.
With conflict looming over the entire region, another very important industry that is bearing the brunt is the beauty and salon industry.
It’s no surprise that the Middle-East is one of the fastest growing cosmetic and beauty hubs in the world. This demand is driven by the high purchasing power and the people’s strong interest in skincare, haircare and luxury beauty services.
Unfortunately, the ripple effect of the geopolitical conflict has significantly affected the beauty and wellness industry.
Before we get down to telling you how, let us look at the current size of the cosmetics and beauty market in the Middle-East.
Key Takeaways
- Understand the role of the Middle-East on the global economy – the impact it has on energy supply, tourism, luxury retail and international trade routes.
- Adverse effects of geopolitical tension on the global supply chain, change in consumer spending patterns.
- Risks and opportunities for salon businesses worldwide
Statistics at a Glance
The global salon hair care services market size was valued at USD 203.78 billion in 2025. The market is projected to grow from USD 218.61 billion in 2026 to USD 391.55 billion by 2034, exhibiting a CAGR of 7.56% during the forecast period.
As far as the regional market size is concerned, the market is valued at $19.23 billion and is projected to reach $26.24 billion by 2034, reflecting steady growth. Most of the international beauty brands’ view Dubai, Doha and Riyadh as key markets to expand.
The ongoing geopolitical tension and war can threaten this growth trajectory.
Key Growth Factors
- Rapid advancement of digital transformation
- Better operational efficiency and scalable business models
- The salon and beauty industry is moving towards automation with solutions like salon software and other technology-driven platforms
- Changing consumer demand and investments in infrastructure are further propelling ongoing demand
- Government initiatives and regulatory backing
Key Supply Chain Disruptions
One of the biggest impacts of the US-Israel war is the disruption of the global supply chain. One of the key shipping routes and trade corridors in the world has been affected by the ongoing war. That is the Strait of Hormuz. This has led to a considerable slow down on the movement of raw materials and finished goods.
The beauty salon industry is citing shipping delays, logistic disruptions, and lack of quick deliveries. Ever since the war broke out, this trend has been witnessed across several Middle-Eastern countries.
Here’s how salons and spas across the globe are being impacted:
- Delays in importing hair and beauty products
- Lack of availability of professional salon products
- Enhanced shipping costs
- Affected inventory levels due to supply chain disruptions
- Changing trade regulations
- Price competition
- Inflation
Since most salons and spas across the globe rely on international brands, they are experiencing a hindrance in their daily operations.
Logistic Challenges
The ongoing war has resulted in airspace closures which is further affecting the supply chain. This is further resulting in shipping delays and suppliers are choosing alternate transportation routes.
The effect of airspace restrictions on the salon industry includes transportational challenges on beauty shipments, import/export of beauty products and delivery of salon professional products.
This has forced suppliers to look/find alternative shipping routes which further increases cost and delivery time.
Supply chain disruptions and logistical delays are together slowing down the growth of the beauty and salon industry. This has also resulted in economic uncertainty. With consumers staying home, they are not availing beauty services, especially premium treatments. This has also resulted in a reduced frequency of salon visits.
Tourism Decline Affecting Beauty Retail & Luxury Fashion Brands
A lot of luxury beauty brands rely on tourism. With a steady decline in tourist arrivals, Middle-Eastern hubs are losing hundreds of millions of dollars daily. This has considerably affected retail and beauty businesses.
In war-hit areas, salons and spas have been forced to close, and retail stores selling beauty products are on the verge of closing. In a nutshell, consumer spending patterns are considerably affected.
Measures Salon Businesses Should Take to Manage the Current Geopolitical Risks
- Constantly Monitor Inventory Levels
To constantly track inventory levels, salons and spas should use hair salon software. This helps them keep an eye on hair, skin and nail products. They get a clear idea of how much stock they have left, which products are about to expire and the most popular products. This also helps them restock accordingly keeping in mind increasing costs and logistical challenges.
- Introduce Affordable Services
During times of economic uncertainty, salon clients prefer treatments that are low-cost. Also, instead of going in for premium treatments, they choose only essential treatments that are required for self-grooming. These include waxing and threading for women and grooming treatments in case of men.
- Customer Loyalty should be Your Priority
During such times, the only way to get clients through the door constantly is by selling them memberships, prepaid and packages. Clients might even come in to redeem their existing memberships and gift vouchers.
Conclusion
The Middle-East Conflict has brought to the forefront how the global beauty and salon industry can also be affected by war. It even shows how interconnected certain industries are.
The war and geopolitical tension have definitely disrupted the supply chain, consumer spending habits, and market expansion. With the war showing no signs of ending any time soon, salon owners will have to adapt and resort to strategic sourcing and advanced technological solutions like salon software, keeping in mind the global economic uncertainty.
