Hair Care Services NAICS 812111, 812112

Jan 23, 2026 - Color, Consultations Lift US Hair Care Industry

• GlossGenius data point to strong momentum for the US hair care industry in 2025, driven by surging demand for color services and higher-value appointments, according to a report in American Salon. Based on bookings from roughly 100,000 US beauty professionals, hair was one of the fastest-growing categories, led by dramatic increases in color services. Salon bookings for root touch-ups jumped 185% year over year, partial highlights rose 133%, toner increased 126%, and full highlights climbed 126%. Client consultations also expanded sharply, up 138%, reflecting greater emphasis on personalized, higher-ticket services. In barbershops, color consultations and partial foils also posted strong gains. Notably, the most popular hair services included premium offerings, with highlights and haircuts ranking first, followed by multiple extension services. Together, the data indicate robust consumer willingness to spend on specialized, professional hair services, supporting revenue growth and margin opportunities for salons and hair care providers.
• Illinois’ decision to continue taxing tips, despite a new federal exemption, has implications for the US hair care industry, particularly salons with tipped stylists and service staff, according to a report by WTVO. Under the federal law enacted in July, eligible service workers can deduct up to $25,000 in tip income from federal taxes for 2025–2028. However, several states, including Illinois, Maine, and Washington, D.C., opted out, citing potential revenue losses, meaning tip income remains fully taxable at the state level. For hair care businesses operating in the opted-out states, the policy may affect take-home pay expectations and workforce retention, as employees will not realize the full tax benefit advertised under the federal rule. The divergence also increases administrative complexity, requiring accurate tip tracking and employee education ahead of 2026 filings. Analysts caution that exemptions for tips can introduce disparities across service roles, adding operational complexity for salon operators balancing labor costs and employee expectations.

• Hair salons are increasingly adopting “recession menus” that offer build your own, lower cost service packages as clients stretch budgets and delay discretionary treatments, according to a recent MPR Report. In Mankato, stylists report slower bookings, shorter scheduling windows, and clients opting for lower maintenance styles, reflecting broader economic pressures including inflation, stagnant wages, and weakened consumer confidence. According to University of Minnesota marketing professor Akshay Rao, reduced demand for services like haircuts, massages, and manicures aligns with declining confidence and heightened uncertainty, though impacts vary across income groups.
• US consumer confidence weakened for a fifth consecutive month in December 2025, shaping a cautious but still supportive backdrop for the US hair care industry. The Conference Board Consumer Confidence Index fell 3.8 points to 89.1, while the Present Situation Index dropped 9.5 points to 116.8, reflecting softer views on jobs and incomes. Despite this, consumer spending continues to favor services over discretionary goods. Planned spending on services held steady, with “beauty and personal care” remaining among the top categories for the next six months. While consumers grew more hesitant about big-ticket purchases and homebuying, essential and routine personal services appear more resilient. Although views of current family finances turned negative for the first time in nearly four years, expectations for future finances improved, suggesting continued demand for regular hair care services, albeit with heightened price sensitivity and increased focus on value as the industry enters 2026.