Nail Salons
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 32,000 nail salons in the US provide nail care services, such as manicures, pedicures, and nail extensions. Manicures and pedicures account for over 85% of industry sales. Nail salons may also offer skin care, hair removal, or other spa-related services. Specialty services include waxing, eyebrow shaping, massage, wraps, reflexology, and eyelash services. Nail technicians may be employees or may rent booth space from the salon and act as independent operators.
Competition From Alternative Service Providers
Nail salons face competition from a variety of alternative service providers, including full-service beauty salons, spas, and clients themselves.
Health Risks For Workers
Nail care services expose workers to chemicals from polishes, removers, and glues, such as formaldehyde, toluene, and methacrylate compounds.
Industry size & Structure
The average nail salon operates out of a single location, employs 4-5 workers, and generates around $430,000 annually.
- The US government reports over 32,000 firms that employ 148,000 workers and generate $12.9 billion in annual revenue.
- Non-employer statistics, which cover the self-employed and businesses with no paid employees, report over 252,200 establishments and over $5.5 billion in annual sales. Non-employer statistics cover nail technicians who rent booth space from individual establishments and act as independent operators.
- The industry is highly fragmented; the top 50 companies account for less than 3% of industry revenue.
- The nail salon industry includes small chains, franchises, and independent operators. With 900 locations, Regal Nails is the largest franchise in the US and operates locations in Walmart stores.
- Many business owners are immigrants. Vietnamese and Vietnamese-American owned salons dominate the industry, although Korean immigrants have established a stronghold in New York City. Vietnamese and other Asian-owned salons account for about 75% of the industry's employer establishments.
Industry Forecast
Nail Salons Industry Growth
Recent Developments
Sep 30, 2024 - Employment, Labor Costs Up
- Employment by nail salons rose 3.4% in July 2024 compared to a year ago, according to the Bureau of Labor Statistics. Average wages for nonsupervisory employees at hair, nail, and skin care services grew 1.9% in July 2024 compared to a year ago, reaching $24.40. Consumer spending, a leading indicator for the industry, increased 2.6% in June 2024 compared to a year ago and was up 0.2% from the previous month, according to the Bureau of Economic Analysis.
- The average price of a nail service at a spa has increased from $48 in 2019 to $59 in 2023, according to the latest edition of Pulse magazine from the International SPA Association (ISPA). The data was released in the 2024 ISPA US Spa Industry Study, which contains “Big Five” statistics from the study: total revenue, spa visits, number of locations, revenue per visit, and industry employment. The study also includes compensation data, service offerings, average prices, and spa location distribution in the US. The US spa industry revenue saw another solid year in 2023, increasing 6% to $21.3 billion from $20.1 billion in 2022. The number of spa visits grew in 2023, increasing from 181 million to 182 million. According to the study, revenue per visit climbed 5%, reaching $117.50. The average price per spa service grew 5% to an estimated $120, with all spa services seeing upward movement year over year. Overall industry employment also increased by 2.6% in 2023 to 370,100.
- According to the Wall Street Journal, costs of haircuts, nail care, and other personal care services have risen by over 27% from 2019 to 2024 per the consumer-price index, as salons pass on higher labor costs and product prices to customers. Some salons now charge for formerly free services, while others strictly enforce fees for appointment cancelations. In addition, salons are also taking advantage of in-demand styles popular on social media by charging more for trending looks, which often are more complex and time-consuming. Customers, meanwhile, are taking steps to cut back where possible by reducing their salon visits and skipping add-on services, per the WSJ.
- A new beauty trends report from Fresha shows that over half of Gen X (54%), Gen Z (52%), and Millennials (51%) view beauty and wellness services as an essential part of their life, according to Nailpro. In comparison, only 37% of Baby Boomers view beauty and wellness services as essential, with 57% seeing the services as an indulgent treat. Appointments are also getting longer, which is a plus for younger generations. About 70% of appointments in 2023 were between 30 to 90 minutes, which is an increase of 18% since 2018. Millennials (60%) and Gen Z (58%) said they don’t mind spending longer in the beauty chair. Fresha CMO Steve Rodgers noted, “The beauty and wellness experience allows consumers to switch off from social media, work emails and phone calls and completely focus on prioritizing themselves.”
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