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Summary of our market study
The global beauty salons and spas market faced a decline due to the COVID-19 outbreak, dropping by 4% in 2020 but has been recovering since 2021 with an expected CAGR of 4.7% from 2020 to 2027, aiming to reach $191.6 billion by 2027. The market's growth attributes to rising disposable incomes and urbanization in emerging countries. In the U.S., consumer fear of COVID-19 transmission affected demand, with up to 36% of respondents hesitant to seek facial care in 2022.
Digital presence has surged as 27% of businesses enhanced their digital services for appointments post-crisis, and 47% of beauty clients interacted with salons or stylists via social media. The sale of DIY beauty products also saw a notable increase, especially in nail care and hair coloring. In the U.S. market, beauty salon revenues accounted for $18.1 billion of the $24 billion total market sales in 2022. Regulations remain stringent, with each state requiring specific cosmetology licenses and adherence to hygiene standards.
Trends and Expectations in the U.S. Beauty Salon Market
The U.S. beauty salon market reflects a dynamic and evolving landscape influenced by consumer behaviors, technological advancements, and post-pandemic adjustments. Analyzing the current demand, it is evident that hair-related services are significantly sought after by American women, particularly those who indulge in three or more treatments annually. Despite the health crisis, which saw an uptick in fears related to in-person services, a considerable proportion of consumers, around 30%, do not share this hesitancy. Nevertheless, safety measures like reduced occupancy rates have a 43% consumer preference, indicating the importance of maintaining some pandemic-induced changes. In the face of the COVID-19 pandemic, the DIY beauty trend witnessed a surge, with categories like nail care and hair coloring. This rise in at-home beauty product sales could pose a challenge to traditional beauty salons if consumers continue this self-care practice. However, the demand for professional beauty services is not waning, as evidenced by the reliance on digital means to connect with these services. The online presence of beauty salons is also growing, with fully digital appointment bookings accounting for 34%, a figure that surges to 38% among younger clients like Millennials and Gen Z.
Social media platforms are becoming pivotal in customer-salon interactions, with nearly half of beauty clients utilizing these platforms and 28% of beauty product sales occurring via social networks. The American beauty salon industry has also perceived a growing interest in skin care across demographics, with approximately 35 to 48% of Americans prioritizing it, especially among the under-40 population segments. Men’s grooming services, such as beard care and advanced skin treatments, are gaining prominence, presenting opportunities for market expansion. Sector segmentation and revenue distribution further illustrate the market structure, with beauty salons commanding a notable share of industry sales, estimated at about 75.6%. It's clear that while the U.S. beauty salon industry faces challenges like health-induced concerns and DIY product competition, opportunities abound in virtual offerings, targeted male services, and leveraging the digital pivot for sustained growth in the face of changing consumer preferences.
Key Players Shaping the Beauty Salon Industry Landscape
In the dynamic and competitive world of beauty salons, several influential entities have carved out notable positions and established themselves as leading agents in the market. Their innovative approaches, comprehensive service offerings, and strategic market positioning help define industry trends and consumer expectations. Below, we spotlight some of these principal actors whose contributions have shaped the beauty salon industry.
- Procter and Gamble (P&G) As a giant in the cosmetics and personal care sectors, Procter and Gamble stands out with its diverse portfolio of trusted brands that extend their reach into the realm of beauty and grooming. P&G's impact is felt not just through product sales but through shaping the standards of beauty care across various segments including hair care, skin care, and personal grooming items. Their market leadership and extensive research contribute crucially to industry trends and consumer habits.
- L'Oréal L'Oréal's prominence as a global beauty leader is unquestioned, with its vast array of cosmetics, skincare, haircare, and perfumes. The company's firm commitment to research and innovation, along with its powerful marketing strategy, allows it to retain a significant influence over the beauty salon market as it collaborates with professionals to offer top-quality products and treatments.
- My Salon Suite As a network of professionals in the beauty sector, My Salon Suite provides beauty professionals with personal salon spaces. This company enables a diverse range of beauty specialists to cultivate their entrepreneurial ambitions and serve their clientele with a more personalized touch, thus meeting the growing demand for individualized beauty experiences.
- The Lash Lounge Specializing in eyelash extensions and related services, The Lash Lounge has capitalized on the soaring interest in eye-centric beauty treatments. Their focus on a niche yet popular segment allows them to stand out in the beauty salon market, delivering expertise that attracts customers seeking dedicated services for their eyelashes.
- Radiant Waxing Catering to the need for hair removal services, Radiant Waxing has honed in on providing a comfortable and high-quality waxing experience. Tailored services that prioritize client care and using premium products set Radiant Waxing apart in the competitive landscape of hair removal specialists.
Each of these entities contributes uniquely to the tapestry of the beauty salon industry, illustrating the dynamism and complexity of the market. The diverse services and specialized expertise offered by these companies not only enrich the choices available to consumers but also encourage ongoing innovation and development within the beauty care sector.
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Summary and extracts
1 Market overview
1.1 Definition and presentation
A beauty salon is defined as a business that offers its clients aesthetic treatments and aesthetic massages without medical purposes.
Beauty salons are operators who perform aesthetic treatments including body care, facials, beauty treatments, waxing and other more specific treatments (UV tanning, pulsed light). They can be generalists or specialized in one treatment.
Salons compete with fitness and thalassotherapy institutes, SPAs and massage salons.
The U.S. beauty salon market growth between 2015 and 2020 was 1.2% per year. The market is highly fragmented, with a consumer base concentrated in the Northeast and Midwest. The beauty salon workforce numbered approximately 721,000 in 2018, of which approximately 75% were hairdressers.[datausa]
1.2 The global market
The global beauty salons and spas market was estimated at $***.** billion in ****. Due to the Covid-** outbreak and restrictive travel measures, industry revenue declined by *% in ****.
However, recovery is expected to take place as early as **** at a slower pace than forecasted prior to the Covid-** crisis. Indeed, on a global scale, the beauty salon market is expected to grow at a CAGR (***) of *.*% between **** and **** to reach $***.* billion by ****.
Global Beauty Salon and Spa Market World, ****-*****, US$ billion Source: ****
The market growth is mainly driven by the development of emerging countries, which includes urbanization of lifestyles and rising living standards. Indeed, the increase in disposable household income and the stress resulting from modern lifestyles are significant growth drivers for the sector.
1.3 The American market
The breakdown of the U.S. market revenue was as follows in ****.
Breakdown of beauty salon revenues in the United States United States, ****, in Source: ****
With total sales estimated at $** billion in ****, it is possible to estimate the beauty salon market at **.*% of this value, or $**.* billion in ****.[***]
2 Analysis of the demand
2.1 Specificities of the American demand
Popular treatments in the United States
The following graph shows the favorite beauty treatments among American women who receive more than three treatments per year. It is noticeable that hair-related treatments represent a significant portion of the demand.
Preferred treatments for women who receive more than three treatments per year United States, ****, in % Source: ****
Mindbody' s **** report also outlines the top targets for the most popular non-hair care products
Service Top Target Manicure, pedicure Women **-** years old Eyebrow services Women ** to ** years old Hair removal Women ** to ** years old Facials Women ** to ** years old Skin care for the whole body Men ** to ** years old
Importance of skin care
Skin care is a priority for many Americans today. In ****, **% of Americans considered skin care a priority. In addition, **% of Americans seek advice from beauty salons when developing their skin care routine.
The following chart shows that this interest is greatest among consumers under **.
Share of the population for whom skin care is a priority United States, ****, in % Source: ****
Men's demand for skincare
Mindbody 's **** report also notes the opportunity presented by male demand. In fact, American men are the most important consumers of the following treatments.
Beard services (***) Advanced skin care ...
2.2 Fears related to the health crisis
The health crisis has induced important changes in the demand for beauty care. Indeed, a part of the consumers is worried about the risks of transmission of Covid. The following graph shows that up to **% of respondents were reluctant to request facial care.
However, it is noted that **% of consumers do not feel this blockage.
What treatments are you reluctant to receive in the current health environment? United States, ****, in % Source: ****
It is interesting to see how these concerns can be addressed. The following chart lists the most popular measures, with **% of respondents preferring to see a reduction in the occupancy rate of beauty facilities.
Again, **% of respondents remain unmoved by these measures and do not want them to be extended.
What security measure do you want salons to continue to implement? United States, ****, in % Source: Square
2.3 Growth in demand for DIY beauty and self-care products
The Covid crisis in the United States has led to a surge in sales of do-it-yourself beauty products. If it is believed that these products can substitute some beauty salon treatments, this trend could pose a threat to the industry.
The following graph shows the progression of these sales from **** to ****. It can be seen that products that are not necessarily the most important in terms of total sales, such as nail care or hair coloring, have seen a remarkable increase from **** to ****.
DIY beauty product sales growth United States, ****-****, in millions of USD and in % Source: ****
3 Market structure
3.1 Market structure
The following graph shows the distribution of establishments making up the beauty care sector in the United States. It can be seen that barber shops represent a minority of the total number of establishments.
US beauty care sector United States, ****, in units Source: ****
Both segments are highly fragmented. Indeed, the top ** U.S. beauty salon operators generate about **% of their segment's revenue, while the top ** barber shop operators generate **%.[***]
3.2 Hairdressers and cosmetologists in the United States
The Bureau of Labor offers statistics on hairstylists and cosmetologists in the United States. Their total number was estimated at ***,***, with ***,*** working in the personal care industry. While the top states in terms of total number of workers are Texas, California, Florida, New York and Pennsylvania, it is more interesting to look at the geographic distribution adjusted for population density.
Hairstylists and Cosmetologists by State
United States, ****, in index
The top states in terms of beauty workers relative to population density are as follows.
These states are mostly located in the Northeast of the country.
However, the same figures on a metropolitan scale show the high concentration of workers in Florida with * of the top * metropolitan areas located in this state.
In ****, hairdressers and cosmetologists had salaries according to the following distribution.
Wages were highest in Massachusetts, Washington, District of Columbia, Colorado and New Jersey.
3.3 A growing online presence
Digital appointment booking
The health crisis has led to a growth in online beauty care bookings.
First of all, the following graph shows an increase in the share of businesses in the sector using automated technology to confirm their appointments since the beginning of the crisis. **% of establishments have taken advantage of the crisis to implement this type of tool.
Companies using automated digital service to confirm appointments United States, ****-****, in % Source: ****
This digitization can also be seen in the fact that **% of establishments allow for fully digital appointment scheduling, and that one in five consumers have chosen to use this service.
This digitization is also more pronounced among younger people. Indeed, if **% of all reservations are made online today, this is the case for **% of reservations made by Millenials or Gen Z customers.
Use of social networks
It's also interesting to note that **% of beauty clients have used social media to interact with their salon or stylist. The following chart details the most common uses of these social networks (***).
What are your interractions with your clients on social networks? United States, ****, in % Source: ****
In addition, the sale of products by skincare companies has been facilitated by social networks with ...
4 Analysis of the offer
4.1 Services offered
In general, the services offered by beauty salons are distinguished between facials, body treatments, hair removal for women, hair removal for men and finally beauty. There are also institutes that specialize in hair removal or manicure
Beauty salons offer several services in each category, including the following
Facial care The average duration is ** minutes. During this time, treatments including anti-wrinkle, anti-aging, purifying, etc. are performed Body care The body scrubbing and modeling service, the application of lotions, skin cream, skin oils, etc Waxing The process of waxing can occur anywhere on the body where there is hair. Common areas for women include eyebrows, legs, lips, etc. For men, the back, stomach, shoulders, etc. are common areas where waxing is desired Beauty preparation Preparation for events such as birthdays, weddings, parties, etc. where treatments such as eyebrow tinting, enhancement and restructuring are popular Beauty of hands and feet Here the client often requests a manicure, polish application and other treatments such as exfoliation, sculpting, skin care application, etc Other Finally, this action point often includes electronic devices and performs services such as cellulite treatment, tanning, special waxing, etc
4.2 Price overview
The price offered for the same service by the institutes varies considerably depending on the duration of the treatment, but also between institutes
In addition, the subscription system of the clients also makes the rates vary; they are higher (***) for the non-subscribing clients. Below is an overview of beauty salon prices in the United States, using Glo in Oklahoma as a benchmark
Source: ****
4.3 New offers linked to the health crisis
The health crisis gave rise to several innovations on the part of beauty institutes that were obliged to transform their offer.
Most of these innovations consisted of institutes sharing their skills online, in the form of tutorials or virtual classes. However, the emergence of gauges to limit the number of people attending the institutes has also led to other innovations, such as the development of an offer for groups.
The following graph details these innovations and gives the general opinion towards their post-pandemic future. Only *% of respondents do not see any future for these offerings.
Which offerings that emerged with the health crisis do you see continuing post-pandemic? United States, ****, in % Source: ****
5 Regulation
5.1 US regulations
In the United States, cosmetics are regulated by the Food and Drug Administration (***).
As far as beauty salons are concerned, establishments must have the right license according to the state. In addition, all cosmetologists must have their cosmetology licenses. There are also specializations of these licenses for hair, skin or nails.
There are other regulations regarding hygiene and the use of chemicals. The following measures must always be observed:
Equipment must be properly disinfected between clients. Brushes and combs must be stored in disinfectant at all times. Razors and scissors should be disinfected regularly. Fresh towels should be used for each client. Sinks, floors, and floor mats must be cleaned daily. A first aid kit must be available at all times. The salon must be well ventilated due to the use of chemicals. Flammable chemicals used must have a dedicated cold and dry storage area.
Establishments must also post workers' rights with posters given at the federal and state level.
Source: ****
6 Positioning of the actors
6.1 Segmentation
- Procter & Gamble
- L'Oréal Groupe
- My Salon Suite
- The Lash Lounge
- Radiant Waxing
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