Hair Care Services NAICS 812111, 812112

Oct 16, 2025 - Online Booking, Social Media Expected by Younger Generations: Survey

• Boulevard’s 2025 consumer survey highlights how Gen Z and Millennials are reshaping the salon industry, with digital engagement now central to client acquisition, according to Salon Today. Some 55% of Gen Z and 47% of Millennials say Instagram or TikTok activity is very or extremely important in deciding where to book, and 20% of Gen Z look to social media first when choosing providers. Convenience is also important: 67% of Gen Z and 64% of Millennials have abandoned salons due to clunky online booking. Loyalty hinges on personalization, with 66% of all respondents citing remembered preferences as essential and 55% expecting tailored add ons or memberships. Service quality remains decisive, as 71% would not return after poor results or negative staff interactions. Communication expectations are also shifting, with 41% of clients expect same day follow ups, and 44% prefer texting. For hair care and salon operators, these data points underscore the need to integrate seamless digital booking, personalization, and proactive communication into core business strategy.
• Softening consumer sentiment and confidence in November and October 2025 reflects a growing weakness in discretionary spending, posing challenges for hair care services. The University of Michigan’s Index of Consumer Sentiment dropped 6.2% month-over-month in November's preliminary results to 50.3, a 29.9% year-over-year decline. The Current Economic Conditions Index fell to 52.3, and the Expectations Index to 49, down 36.3% annually. Year-ahead inflation expectations rose to 4.7%, while long-run expectations declined to 3.6%, with increased uncertainty across both horizons. Meanwhile, the Conference Board’s Consumer Confidence Index edged down to 94.6 from 95.6 in October, as improved current conditions (Present Situation Index up to 129.3) were offset by weaker short-term expectations (Expectations Index down to 71.5). Inflation expectations rose to 5.9%, and over half of consumers anticipated higher interest rates.

• According to the National Law Review, the FTC’s decision in September 2025 to leave non-compete enforcement to state law brings clarity but also complexity for hair salon owners navigating employee agreements. With over 30 states imposing varying restrictions on non-competes, ranging from full bans in places like California to strong enforcement in states like Florida, salon operators must tailor contracts to local legal standards. This is especially relevant in a high-turnover industry where stylists often move between salons or start their own businesses. As states continue to reevaluate non-compete policies, salon owners should consult legal counsel to ensure agreements remain enforceable and compliant. The ruling underscores the importance of strategic workforce planning and competitive retention practices in the evolving regulatory landscape. The FTC had proposed a ban on most non-compete agreements, which was scheduled to go into effect in September 2024, before facing multiple legal challenges to the ban.
• According to a report in The Root, recent tariff policy changes, including the removal of the $800 de minimis import exemption, are significantly impacting US hair salons, particularly those serving Black beauty markets. Prices for imported essentials such as synthetic braiding hair, wigs, and adhesives have surged, with some products rising over 50% since May. Salon owners face difficult choices: absorb rising costs or pass them on to clients, many of whom are increasingly price sensitive. This shift is prompting stylists to adjust pricing models and consumers to explore DIY alternatives, raising concerns about the sustainability of small braiding businesses. Some salons have modified pricing, such as charging a lower price for weave-style customers who bring their own hair. The hair salon industry, especially specialized providers, is vulnerable to global trade shifts. Tariff-driven cost increases threaten profitability, client retention, and long-term viability. Salons must reassess sourcing strategies, pricing structures, and service models to remain competitive.