Day Spas and Tanning 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 30,900 day spas and tanning salons in the US provide personal care services to clients, including massages, indoor and sunless tanning, skincare treatments, and nail care treatments. Day spas and tanning salons also sell skincare and body care products, cosmetics, candles, vitamins and nutritional supplements, and other retail products. Some day spas also offer hair care services.
Competition for Services
Day spas face competition from other providers of massages and skin treatments, including hotel and resort spas, medical spas, fitness centers, independent masseuses, nail salons, and dermatology practices.
Indoor Tanning Health Concerns
Concerns over the health risks of using tanning beds threaten to reduce demand for tanning salons.
Industry size & Structure
The average day spa has 16 employees and generates over $842,000 in annual revenue, while the average tanning salon has 6 employees and generates about $275,000 in annual revenue.
- The spa industry in the US has about 21,500 locations, employs 345,000 people, and generates about $18 billion in annual revenue. About 80% of locations are day spas, with the remainder consisting of hotel and resort spas, destination spas, and medical spas.
- Tanning salons in the US have about 9,400 locations, 60,500 employees and generate about $2.6 billion in annual revenue.
- US consumers made 182 million visits to spas in 2023, according to the International SPA Association.
- Most day spas and tanning salons are independently owned and operated. Franchise locations of large chains account for less than 5% of industry revenue.
- Day spa chains include Massage Envy, Woodhouse Day Spa, and Bliss.
- Tanning salon chains include Palm Beach Tan, Planet Beach Tan, Hollywood Tans, and LA Tan.
Industry Forecast
Day Spas and Tanning Salons Industry Growth
Recent Developments
Apr 17, 2025 - Average Growth Forecast
- 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 spa and tanning salon visits may be affected by falling consumer confidence, with levels declining 7.2 points to 92.9 in March 2025 month over month, according to the Consumer Confidence Index from the Conference Board. Stephanie Guichard, Senior Economist of Global Indicators at The Conference Board, noted that the segment driving March’s decline was consumers over 55 years old, and the decline spanned all income groups with the exception being households earning over $125,000. Per Guichard, “Consumer confidence declined for a fourth consecutive month in March, falling below the relatively narrow range that had prevailed since 2022.” Purchasing plans for homes and new cars declined while big-ticket purchases rose on a six-month moving average basis, which may reflect plans to purchase certain items before impending tariffs lead to price increases.
- Ticket sizes increased 15% for both membership-based and non-membership spas in 2024, according to the 2025 Beauty and Wellness Benchmark Report by Zenoti in Salon Today. Memberships were a top growth area for salons, waxing centers, membership spas, and medspas, which averaged a 24% boost in membership in 2024 compared to a year ago. Membership programs increase the number of customers who visit more than five times a year by 10% and benefit salons by providing reliable recurring revenue and building long-term client relationships. The Zenoti report found that the beauty and wellness industry showed a 2% increase in growth in 2024 compared to 5% in 2023. Businesses that focused on adding locations in 2024 saw a 5% increase in revenue. Customer loyalty also stood out as a vital income generator, with 42% of loyal clients driving 80% of revenue.
- Spas are increasingly incorporating biohacking principles to offer clients a new level of personalized services, as niche practices enter the mainstream, according to a report in American Spa. Biohacking includes a range of procedures aimed at boosting performance, wellness, and longevity with technologies including cryotherapy, infrared saunas, and neurofeedback. The cryotherapy process exposes the body to extremely cold temperatures for short durations, which can have benefits like reduced inflammation, improved circulation, faster recovery, and enhanced mood. Spas are incorporating lymphatic support techniques into wellness practices to help reduce stress, promote relaxation, and restore balance to the body’s healing mechanisms by eliminating toxins and metabolic waste. Red light therapy is a non-invasive treatment with infrared light known to reduce signs of aging, improve skin health, and alleviate muscle soreness. Infrared saunas use infrared light to penetrate and heal the body. Neurofeedback and meditation pods can improve relaxation and mental clarity.
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