Hair Care Services NAICS 812111, 812112

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Industry Summary
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.
Recent Developments
Jul 25, 2025 - “No Tax on Tips” Policy Passes
- According to National Public Radio (NPR), tipped workers in the beauty industry will be able to deduct up to $25,000 in tips annually from their taxable income following a provision included in President Trump’s recently signed spending and tax package that passed Congress. After the $25,000 is met, tips will be federally taxed. Also, workers who make more than $150,000 are not eligible for the deduction. According to estimates from the White House, tipped workers are expected to save about $1,700 a year on average. The law will be phased out at the end of 2028, if not extended by Congress. Tipped work is about 2% of all US employment, according to Yale Budget Lab’s Martha Gimbel. Congress has also extended the availability of the 45B FICA tip tax credit to beauty service industry employers, which allows business owners to receive dollar-for-dollar tax credits for their portion of payroll taxes.
- According to American Salon, three more states have mandated textured hair education for their state-licensed hair care professionals, bringing the total to eight states with similar regulations. Vermont, Maine, and Washington have passed recent legislation requiring their cosmetology schools to update their curricula to include education on caring for hair of all textures. Existing states with similar mandates are California, Minnesota, Connecticut, New York, and Louisiana. Louisiana passed the first legislation on the topic in 2021. Before then, textured hair had not been included in most cosmetology programs in mainstream US beauty schools, which led to a lack of equitable access to professionally trained and licensed stylists. According to American Salon, more than 65% of Americans have curly, coily, or wavy hair. According to the Professional Beauty Association’s Government Affairs Director Myra Redding, “These continued victories fuel the Texture Education Collective momentum as we advocate for similar legislation across the nation, promoting consistent standards and excellence in beauty education from coast to coast.”
- According to NBC News, salon workers are seeing a shift in client behavior in recent months, including canceling appointments, forgoing expensive treatments, and waiting longer between haircuts. According to Guy Lacey, a VP with salon equipment supplier Salon Services PRO, “Pre-bookings are down across most of our salon network, and the thing that’s really been happening in the last two to three weeks is cancellations. We’re starting to see a lot more cancellations.” Lacey compared it to the decline in 2007, at the beginning of the Great Recession. Salon data reviewed by Lacey shows clients who typically come in every six to eight weeks are stretching to 10 to 12 weeks, and hair extension appointments have fallen by a third. Stylists have seen supply costs rise for certain supplies, such as foil used to highlight hair and steel hair spray cans, due to the 20% tariffs on aluminum and steel.
- Consumer sentiment, an indicator of discretionary spending, increased slightly in July 2025, rising to 61.8 in preliminary July data from 60.7 in June, according to a report in the Wall Street Journal. The consumer sentiment index from the University of Michigan hit a recent peak in December of 74, buoyed following the presidential election, but dropped to 52.2 in April 2025 as consumers expressed uncertainty about tariff effects and rising inflation. In July, respondents’ inflation expectations for the coming year were an anticipated price increase of 4.4%, which was tracking higher than in January, when respondents expected prices to grow by 3.9%. However, July’s inflation expectation results were lower than June’s, when respondents expected a 5% price increase for the coming year. The index serves as a predictor of consumer spending as it indicates consumers’ perception of their financial prospects and the broader economy.
Industry Revenue
Hair Care Services

Industry Structure
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
Industry Forecast
Hair Care Services Industry Growth

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