Hair Care Services
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 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.
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 (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.
Industry Forecast
Hair Care Services Industry Growth
Recent Developments
Jan 16, 2025 - Hair Gloss, Scalp Detoxes Among Fastest-Growing Salon Services: Glossed
- American salon trends that took off in 2024 included hair gloss treatments (up by 209% from last year), blowouts (up 121%), and scalp detoxes (up 88%), according to the annual Glossed report from GlossGenius in American Salon. The top specialty braids in 2024 were feed-in braids (up 61% from last year), boho knotless bob (up 58%), and medium island twist (up 50%). The Glossed report found the most favorite beauty trend was lived-in hair color, the favorite product was K18 Hair Mask, and the most requested celebrity celebrity inspo was Sabrina Carpenter. Over half of beauty and wellness professionals increased prices in 2024, citing reasons such as a new location/upgraded space, increased demand for services, and higher take-home pay.
- Hair salons will have to monitor minimum wage changes in 2025, as 21 states and 50 local jurisdictions increased their minimum wages, according to Chain Store Age. States with the highest minimum wage in the US are Washington ($16.66 per hour), California ($16.50), and New York ($16.50). Nearly 30 cities in California and seven towns in Washington will raise minimum wages in 2025, with Tukwila, Washington, offering the highest minimum hourly wage in the US at $21.10. According to the Economic Policy Institute, the minimum wage change will affect more than $9 million workers and raise pay by a combined $5.7 billion. Unchanged since 2009, the federal minimum wage is $7.25 an hour, and some 20 states, primarily located in the South and the Midwest, use the federal minimum as their wage floor.
- Change could be on the horizon for hair salons with several of president-elect Donald Trump’s tax and tariff proposals, according to a recent report in Salon Today. Caroline Moss of Azarvand Tax Law listed key proposals for the salon industry to monitor such as tax-free tips, overtime pay exemption, import tariffs and equipment costs, and the extension of the Tax Cuts and Jobs Act (TCJA). The proposed exemption of tips from income taxes would be a significant change for stylists who earn a base pay plus tips, resulting in thousands more in pay each year. The exemption of overtime pay from income taxes could make overtime shifts more appealing to workers and give salons more flexibility to extend their operating hours or accept bookings during peak times. Proposed tariff increases would likely increase costs across all imported equipment and supplies, including professional hair care products, styling equipment and chairs, tools and supplies, and salon furniture and fixtures. The extension of the TCJA affects a variety of corporate tax provisions including pass-through income deductions and capital expensing.
- Consumer confidence levels declined in December 2024, falling by 8.1 points from the previous month, according to The Conference Board. The Consumer Confidence Index was 104.7 in December 2024 from 112.8 in November 2024. Dana Peterson, chief economist at The Conference Board, noted that those remaining most confident on a six-month moving average basis confidence were those aged under 35 and those in the income category of over $100,000. Per Peterson, “The recent rebound in consumer confidence was not sustained in December as the Index dropped back to the middle of the range that has prevailed over the past two years.” Purchasing plans for homes decreased while plans to buy new cars and big-ticket items rose in December 2024 on a six-month average basis.
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