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
Mar 18, 2025 - Memberships Driving Salon Growth
- According to a new report in Salon Today, salons, waxing centers, and medspas averaged a 24% boost in membership in 2024 compared to a year ago, showing consumer interest in this approach. 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 2025 Beauty and Wellness Benchmark Report by Zenoti 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. The Zenoti report analyzed performance data from its database of 30,000 businesses, including salons, nail salons, barbershops, waxing centers, spas, and medical spas.
- Personal care services, included in the “Other Services” category, is one of the 14 industries reporting growth in February’s Services ISM Report on Business. Executives in the Other Services industry reported increases in business activity, new services, and employment, while reporting decreased inventories, lower order backlogs, and higher prices paid for materials and services. Other services industries reporting growth during the period included Finance & Insurance; Wholesale Trade; Utilities; Agriculture, Forestry, Fishing & Hunting; Mining; Real Estate, and Rental & Leasing. The three services industries reporting contraction during the period were Management of Companies & Support Services; Retail Trade; and Educational Services. Overall, economic activity in the services sector expanded in February, with the Services PMI registering 53.5%.
- Salons may find clients more amenable to so-called “green fees” than expected, according to a survey by Sustain Beauty reported in American Salon. About a third of the beauty professionals polled in the survey said they were opposed to the practice of adding surcharges to salon tickets to offset sustainable business costs over concerns they would alienate their clients. About 70% of consumers polled, however, said they would pay a premium for sustainable salons services, and would pay on average about 20% more than the average salon is charging for a green surcharge. Of beauty professionals who said they charged a green fee, the average cost was $3 per visit and the highest was $10 per visit. The most common reason to charge a fee for a salon was to cover recycling costs (80%) and carbon offsetting (30%). The survey identified some hurdles that salons face when deciding whether to charge a fee, such as concerns about lack of transparency, preconceived ideas about customer attitudes toward the practice, and a belief that additional costs should be absorbed by the business instead of being passed along to clientele.
- 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.
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