Day Spas and Tanning Salons NAICS 812199

Jul 18, 2025 - Pricing, Employment Up

• The Consumer Price Index (CPI) for haircuts and other personal services, including day spas and tanning salons, increased 2.7% in June 2025 compared to a year ago, per the Bureau of Labor Statistics (BLS). Day spas have been adjusting pricing as they grapple with economic uncertainty driven in part by tariff impacts, ongoing inflation, cost-conscious consumers, and increased operational costs. According to recent BLS data, employment was on the rise for day spas and tanning salons in April 2025, while wages dropped. Employment by other personal care services grew 9% in April 2025 compared to a year ago. In the last decade, employment grew 48.1% in the sector, which is faster than the nearly 14% growth in overall private employment. Average wages at day spas and tanning salons fell 4.4% in April 2025 year over year, reaching $24.42 an hour for nonsupervisory employees.
• The University of Michigan’s consumer sentiment index increased slightly in July 2025, rising to 61.8 in preliminary July data from 60.7 in June, according to a report in the Wall Street Journal. The consumer sentiment index hit a recent peak of 74 in December, buoyed following the presidential election, but dropped to 52.2 in April 2025 as consumers expressed uncertainty about tariff effects and rising inflation. The record low of the index during the past 10 years was in June 2022, when it reached 50. In July, respondents’ inflation expectations for the coming year were a predicted increase of 4.4%, higher than in January, when respondents expected prices to grow by 3.9%. However, July’s inflation expectation results were lower than June’s, when respondents expected a 5% price increase for the coming year. The index serves as a predictor of consumer spending as it indicates consumers’ perception of their financial prospects and the broader economy.

• 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.