Day Spas and Tanning Salons NAICS 812199

May 19, 2025 - Employment Up, Wages Down

• According to recent data from the Bureau of Labor Statistics (BLS), employment was on the rise for day spas and tanning salons in March 2025 while wages dropped. Employment by other personal care services, which includes day spas and tanning salons, grew 9.2% in March 2025 compared to a year ago. In the last decade, employment grew 47.8% in the sector, which is faster than the nearly 14% growth in overall private employment. Average wages at day spas and tanning salons fell 6.4% in March 2025 year over year, reaching $23.82 an hour for nonsupervisory employees. Day spas are monitoring pricing pressures resulting from an uncertain economic environment. The Consumer Price Index for haircuts and other personal services increased 3.6% in April 2025 compared to a year ago, per the BLS.
• US spa revenue, locations, and visits are growing, according to the annual US Spa Industry Study report results in Skin Inc. The study is commissioned by the International SPA Association (ISPA) and conducted by PwC. Overall revenue at US spas increased 5.8% in 2024 to $22.5 billion year over year. Total spa visits rose 3.1%, reaching 187 million in 2024, while the number of spa locations grew year over year 0.6% to 21,980 in 2024. The report noted that 30% of properties surveyed said they’d renovated their retail in 2024, and 25% had improved their treatment rooms. Revenue per visit also grew 2.6% year over year in 2024, reaching $120.30 in 2024. In addition, spa industry employment increased 1.6% year over year in 2024.

• The US day spas and tanning salons industry is projected to grow at a CAGR of 4% between 2025 and 2029, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The expected growth rate is comparable to the overall economy‘s anticipated growth. Day spas and tanning salons are part of the “other services” sector, which is driven by consumer spending, along with expenditure by businesses. Consumer sentiment is expected to improve in the forecast period, which bodes well for the sector. Factors that may limit consumer spending are higher tariffs on consumer goods. On a positive note, lower inflation supports a moderate increase of real disposable income by about 2% in 2025 and 1.9% in 2026. Real income could suffer to an extent if average prices rise due to tariff implementation.
• Day spas and tanning salon visits may be affected by falling consumer confidence, an indicator of discretionary spending, according to two major indicators. The final index of consumer sentiment from the University of Michigan dropped 8% in April 2025 from the previous month, according to CFO Dive. An index measuring consumers’ expectations for the future fell nearly a third since January, the steepest three-month percentage decline since the 1990 recession. According to survey director Joanne Hsu, “Consumers perceived risks to multiple aspects of the economy, in large part due to ongoing uncertainty around trade policy and the potential for a resurgence of inflation looming ahead.” The Consumer Confidence Index declined by 7.9 points in April 2024, compared to the previous month. Consumer confidence levels have fallen for five consecutive months, reaching levels not seen since the beginning of the COVID pandemic, according to The Conference Board, which publishes the monthly index.