Clean cut: Rising consumer confidence and disposable income will foster industry growth

The Hair Salon industry has managed to untangle its early postrecessionary knots. Rising consumer sentiment and per capita disposable income have boosted industry growth over the five years to 2017. This has also led to increased demand for ancillary services to standard haircuts, such as hair modification treatments (e.g. straightening procedures and perms), skin-care services and massages. In the coming years, the industry is forecast to exhibit continued growth. Per capita disposable income and consumer confidence will keep rising as the unemployment rate continues to decline, providing consumers with more discretionary income for luxury services at hair salons...purchase to read more.

Industry Statistics & Market Size
Revenue
$44bn
Annual Growth 12-17
1.8%
Forecast Growth 17-22
Profit
Employment
1.4m
Businesses
1.0m
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Companies have continued to enter the industry due to stable profit margins and low barriers to entry
  • Hair salons that exclusively offer blow-dry services have become more prevalent
  • US residents will spend more freely as declining unemployment boosts consumer confidence
  • Industry Report - Industry Products Chapter

    Haircutting and styling servicesHaircutting and styling services constitute the largest single service group for this industry at 57.3% of total revenue. Services in this segment include cutting, trimming and layering hair for all demographic groups. Additionally, haircutting also extends to beards and mustaches, which is traditionally done by barbers. Services that accompany haircuts, such as shampooing, blow-drying and styling, are also included in this segment. Typically, consumers perceive haircuts to be a necessary service relative to other industry services; hence, demand tends to be relatively stable. In the five years to 2016, the share of revenue generated from haircutting services is projected to have increased, albeit slightly...purchase to read more.

    Additional Insights for the Hair Salons Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Hair Salons Industry are

  • Having a loyal customer base
  • Employees must have a license
  • Accessibility to consumers
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and National unemployment rate in the Hair Salons industry impact industry performance..

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    What's in this report

    What is the Hair Salons Industry?

    This industry includes salons that primarily offer hair care services such as haircutting, hair coloring and hairstyling services. Additionally, these companies may provide facials and makeup applications (except permanent makeup) and retail beauty products. This industry does not include operators that primarily offer training in barbering or hairstyling.

    Industry Products
  • Haircutting and styling services
  • Hair coloring services
  • Other hair services
  • Resale of merchandise and cosmetic products
  • Skin care services
  • Industry Activities
  • Haircutting
  • Permanently modifying hair texture
  • Providing hairstyling services
  • Providing temporary makeup services
  • Providing facials and skin care services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • National unemployment rate
  • External competition for the Hair & Nail Salons industry
  • Number of adults aged 20 to 64

  • Current Performance
  • Growth opportunities
  • The latest trends
  • Shifting attitudes
  • Chart: Revenue Growth

  • Industry Outlook
  • Demanding services
  • Trends and ecofriendly products
  • Industry landscape
  • Table: Hair Salons Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Hair Salons Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Wedding Services
  • Consumers

  • Key Selling Industries
  • Commercial Leasing
  • Drug, Cosmetic & Toiletry Wholesaling
  • Dry Cleaners
  • Petrochemical Manufacturing
  • Pharmacies & Drug Stores

  • Products & Services
  • Haircutting and styling services
  • Hair coloring services
  • Resale of merchandise and cosmetic products
  • Other hair services
  • Skin care services
  • Chart: Hair Salons Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers age 35 to 44
  • Consumers age 45 to 54
  • Consumers age 25 to 34
  • Consumers age 55-64
  • Consumers over 65
  • Consumers under age 25
  • Chart: Major Market Segmentation for the Hair Salons Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Rent and utilities
  • Purchases
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Hair Salons

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hair Salons Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Hair Salons Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Hair Salons Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per capita disposable income (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Facial
  • A beauty treatment for the face involving a variety of skincare products.
  • Keratin Treatment
  • Also known as the Brazilian Blowout. Product used to eliminate frizz, curls or waves from hair for three to four months.
  • Permanent Hair Texture Modification
  • Applying chemicals, heat or liquid that alters hair's internal structure to change its shape, such as straightening or curling it.
  • What Our Customers Say

    Why buy this report?

    The Hair Salons Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Hair Salons:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Hair Salons market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Hair Salons, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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