The beauty salon market - United States

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.

Inforamtion

• Number of pages : ~ 40 pages
• Format : Digital and PDF versions
• Last update : 03/04/2022

Summary and extracts

List of charts presented in this market study

• Size of the global beauty salon and spa market
• What care are you reluctant to receive in the current health context?
• What security measure do you want salons to continue to implement?
• American beauty care sector
• Increase in sales of DIY beauty products
• Companies using an automated digital service to confirm appointment scheduling
• What are your interactions with your customers on social networks?
• Preferred care for women receiving more than three treatments per year
• Share of population for whom skin care is a priority
• What offers that came out of the health crisis do you see continuing post-pandemic?
• Breakdown of beauty salon revenues in the United States