Hair Salons in the US - Market Research Report (2013-2028)
New York, United States
Last Updated: November 2023
NAICS OD4410Revenue
$52.2bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
1m
Businesses
953k
Wages
$XX.Xbn
Hair Salons in the US industry analysis
Over the past five years, the Hair Salons industry has benefited from rising consumer sentiment and per capita disposable income. These trends have also increased demand for ancillary services to standard haircuts like hair modification treatments (e.g. straightening procedures, perms and relaxing treatments), skincare services and others. Nonetheless, the onset of the COVID-19 pandemic in 2020 led to the temporary closure of industry establishments and a significant decline in demand in 2020 as individuals had fewer reasons to get haircuts due to stay-at-home mandates and high unemployment. These economic trends caused revenue to decline at a CAGR of 1.5% to an estimated $52.2 billion over the past five years, while inching upward an anticipated 0.2% in 2023.
Trends and Insights
- Strong economic performance is vital for industry success. As consumer sentiment grows and the economy strengthens, demand for hair salon servicing will increase.
- Consistent consumer demand for traditional haircuts fuels revenue. Despite offering increasing luxury services that focus on looks, standard haircuts remain the core contributor for hair salons.
- Industry presence is heightened in areas with a large population. The localized nature of the industry makes it necessary for a region to have large population centers where customer access is plentiful.
- Emphasis on high quality of service drives strong competition. Hair salons that can offer high-quality hair services will be able to secure customers in the long term and maintain a competitive edge over local competitors.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 1.5 % over the past five years, to reach an estimated $52.2bn in 2023.
Trends and Insights
Devastating economic effects of the COVID-19 pandemic harm industry growth
- Since the Hair Salons industry is a consumer-facing industry that provides hair services across their establishments, it requires a steady consumer presence within the hair salon and a strong economy to ensure industry growth.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Improving economic situation accelerates industry recovery and fuels newfound customer demand
- With the COVID-19 pandemic decimating the broader economy and hair salons enduring widespread losses in 2020, the economic recovery following the pandemic will bolster consumers' income levels and accelerate the industry's recovery.
Biggest companies in the Hair Salons in the US
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
Great Clips, Inc. | 1,184.8 | 105.5 | 8.9 | |
Regis Corp | 394.9 | 35.1 | 8.9 |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Haircutting and styling services, Hair coloring services and Other services. Haircutting and styling services is the largest segment of the Hair Salons in the US.
Trends and Insights
Expansive consumer demand maintains strong performance for haircutting and styling services
- The haircutting and styling services segment is composed of revenue generated from the sales of haircut, hairstyle and hair maintenance services like shampooing, blow-drying and styling.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Trade & Technical Schools in the US
- Specialist Doctors in the US
- Hair & Nail Salons in the US
- Hair Loss Treatment & Removal in the US
- Tanning Salons in the US
International industries
- Hair & Nail Salons in Canada
- Hairdressing and Beauty Services in Australia
- Hairdressing and Beauty Services in New Zealand
- Hairdressing & Beauty Treatment in the UK
- Skin Care, Hairdressing & Beauty Services in China
Table of Contents
About this industry
Industry definition
This industry includes salons that primarily offer hair-care services such as haircutting, hair coloring and hairstyling. 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.
What's included in this industry?
Haircutting and styling servicesHair coloring servicesResale of merchandise and cosmetic productsSkincare servicesOther ServicesCompanies
Great Clips, Inc.Regis CorpPurchase this report to view all 2 major companies in this industry.
Related Terms
PERMANENT HAIR TEXTURE MODIFICATIONKERATIN TREATMENTFACIALIndustry Code
NAICS 81211 - Hair Salons in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Strong economic performance is vital for industry success. As consumer sentiment grows and the economy strengthens, demand for hair salon servicing will increase.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Consistent consumer demand for traditional haircuts fuels revenue. Despite offering increasing luxury services that focus on looks, standard haircuts remain the core contribu...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Industry presence is heightened in areas with a large population. The localized nature of the industry makes it necessary for a region to have large population centers where ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each state in 2023
- Number and share of revenue each state accounts for in 2023
- Number and share of wages each state accounts for in 2023
- Number and share of employees in each state in 2023
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Emphasis on high quality of service drives strong competition. Hair salons that can offer high-quality hair services will be able to secure customers in the long term and mai...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
No company owns more than a 5.0% share of the industry. Since hair salons operate on a localized basis and face notable operating costs, capturing a significant market share ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Great Clips, Inc.'s performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Regis Corp's performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for Great Clips, Inc., and factors influencing its performance in the industry
- Description and key data for Regis Corp, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Emphasis on strong per capita disposable income growth is crucial for the industry. If consumers lack fiscal flexibility in affording these discretionary services, demand for...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Industry profitability is dependent on stable economic conditions. If the economy performs poorly and consumer confidence drops, hair salons will suffer revenue losses as con...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Industry Multiples (2016-2021)
- Industry Tax Structure (2016-2021)
- Income Statement (2016-2021)
- Balance Sheet (2016-2021)
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Hair Salons in the US industry in United States in 2024?
The market size of the Hair Salons in the US industry in United States is $52.2bn in 2024.
How many businesses are there in the Hair Salons in the US industry in 2023?
There are 953k businesses in the Hair Salons in the US industry in United States, which has grown at a CAGR of 0.2 % between 2018 and 2023.
Has the Hair Salons in the US industry in United States grown or declined over the past 5 years?
The market size of the Hair Salons in the US industry in United States has been declining at a CAGR of 1.5 % between 2018 and 2023.
What is the forecast growth of the Hair Salons in the US industry in United States over the next 5 years?
Over the next five years, the Hair Salons in the US industry in United States is expected to grow.
What are the biggest companies in the Hair Salons in the US market in United States?
The biggest companies operating in the Hair Salons market in United States are Great Clips, Inc. and Regis Corp
What does the Hair Salons in the US in United States include?
Haircutting and styling services and Hair coloring services are part of the Hair Salons in the US industry.
Which companies have the highest market share in the Hair Salons in the US in United States?
The company holding the most market share in United States is Great Clips, Inc..
How competitive is the Hair Salons in the US industry in United States?
The level of competition is high and increasing in the Hair Salons in the US industry in United States.
