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.

Sep 17, 2026 - DIY Trends Drive Salon Demand

• Rising DIY beauty is a mixed development for US hair care services: at-home cuts and color can divert some spending from salons, but poor results can reinforce the value of licensed professionals, according to American Salon. The report notes that incorrect DIY treatments can cause hair loss, chemical burns, and other damage, creating demand for corrective services while also raising liability and reputational risks for salons asked to fix compromised hair. Operators may need stronger consultations, documentation, and discretion before performing follow-up treatments. The trend also gives salons an opportunity to differentiate through professional training, safety standards, and personalized care. For the industry, DIY growth increases competitive pressure on routine services but may strengthen demand for complex color work, corrections and other services where expertise and risk management matter most.
• US hair care services entered the second half of 2026 with a stable but subdued outlook, as July salon revenue rose 1.90% year over year but slipped 0.35% from June, according to the Professional Beauty Association’s September Pro Beauty Pulse. Higher pricing remained the main growth driver, with the average service ticket up 3.05% year over year, while service volume increased just 0.76% and client visits were essentially flat. Color services remained a relative strength, with revenue up 3.25% and service volume up 1.56%. Through July, total salon revenue was up 1.62%, but services, clients, and visits remained slightly below 2025 levels. Retail remained weak, with revenue down 3.07% and units down 5.09%. Sustainable growth will depend increasingly on stronger client traffic and service frequency.
• The cost of haircuts increased 4.2% in August 2026 compared to a year ago and rose 0.4% 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 June 2026 compared to a year ago while labor costs rose, per the BLS. Employment at barber shops and beauty salons fell 1.1% in June 2026 compared to a year ago. Meanwhile, average wages for nonsupervisory employees in the hair, nail, and skin care services industry grew 3% in June 2026 year over year, reaching $27.05 per hour.
• 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.

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.