Hair Care Services

The 76,600 hair care service companies in the US, including beauty shops, hair salons, and barber shops, provide hair cutting, coloring, and styling services. Hair salons may also provide skin and nail care services. Barber shops may shave or trim men’s beards. Companies often sell hair care products. The vast majority of hair care service providers (95%) are beauty salons.

Competition For Ancillary Services

Beauty parlors compete with spas, nail salons, and physician’s offices for ancillary services related to skin and nail care.

Dependence On Skilled Labor

The reputation and success of an individual hair care establishment is highly dependent on the quality of service and staff.

Jul 20, 2026 - Salons Turn to Omnichannel Retail

• Salons are responding to growing competition from e-commerce by adopting omnichannel retail strategies and emphasizing personalized product recommendations to protect a key revenue stream, according to a Salon Today report. The report highlights salons launching branded online storefronts, using social media, hosting retail-focused events, improving merchandising, and investing in staff education to keep product sales in-house. One salon reported that about half of retail purchases now occur online through its own storefront, while another achieved a 44% increase in upsells and a 56% increase in its retail-to-sales ratio after implementing a four-week retail training program. Owners also cited declining customer loyalty as shoppers increasingly purchase professional hair products through Amazon and warehouse clubs. For the US hair care industry, the trend underscores the importance of combining personalized in-salon expertise with digital commerce, product education, and loyalty-building strategies to compete with online retailers and sustain retail product sales.
• The cost of haircuts increased 4.4% in June 2026 compared to a year ago and rose 1.3% compared to the previous month, according to the Consumer Price Index from the US Bureau of Labor Statistics (BLS). Hair care services employment fell in May 2026 compared to a year ago while labor costs rose, per the BLS. Employment at barber shops and beauty salons fell 1.9% in May 2026 compared to a year ago. Meanwhile, average wages for nonsupervisory employees in the hair, nail, and skin care services industry grew 2.9% in May 2026 year over year, reaching $26.82 per hour.
• Regis's Q3 2026 results suggest the US hair care industry remains stable but is relying more on pricing increases and operational improvements than strong customer traffic growth. The company reported 2.6% same-store sales growth, including 5% growth at Supercuts, driven largely by pricing actions rather than increased visits. At the same time, Regis continued to close underperforming salons, though closure rates have slowed significantly compared with prior years, indicating improving stability across the salon sector. Management remains focused on driving traffic through brand investments, loyalty programs, digital tools, AI-enabled operations, and enhanced stylist training, reflecting broader industry efforts to attract customers in a competitive environment. The results also highlight ongoing consolidation, as weaker locations exit the market while operators invest in technology, customer retention, and operational efficiency to improve profitability. Overall, demand for hair care services remains resilient, but sustained growth will likely depend on increasing salon visits rather than further price increases.
• Proposed Department of Education regulations could put up to 92% of US cosmetology programs at risk of closure, creating a major workforce threat for the US hair care services industry, according to a recent American Salon report. Industry groups warn the new earnings-based accountability rule could eliminate federal financial aid access for roughly 1,400 cosmetology programs, disrupting the pipeline of licensed stylists and salon professionals. Because 70% to 90% of cosmetology students rely on federal aid, widespread school closures could intensify existing labor shortages, raise hiring costs for salons, and reduce industry growth potential. Advocates also argue the rule fails to accurately reflect beauty industry career paths, where professionals often take years to build clientele and income. For hair care businesses, the proposal could limit access to new talent while increasing operational and staffing pressures across salons, spas, and independent beauty service providers.

Industry size & Structure

The average hair care service provider operates out of a single location, employs about five workers, and generates about $376,000 annually.

• The hair care services industry consists of about 76,600 establishments that employ 402,000 workers and generate about $28.8 billion annually.
• The vast majority of hair care service providers (approximately 95%) are beauty salons.
• The industry is highly fragmented; the top 50 salon firms account for 13.6% of total revenue.
• The hair care services industry includes national chains, franchises, and independent operators.