Nail Salons NAICS 812113

Sep 30, 2025 - Gel Nail Ingredient Ban Abroad May Disrupt Supply for US Nail Salons

• According to a report in Vogue, the EU has enacted a ban on TPO, a key ingredient in gel nail products, which may prompt US nail salons to reassess product sourcing and safety standards as global reformulations take hold. TPO (trimethylbenzoyl diphenylphosphine oxide), commonly used in gel topcoats for its durability and low yellowing rate, has been classified as reprotoxic and carcinogenic in Europe, leading to mandatory disposal of affected products. The ban applies only in Europe for now, but it may influence US nail salons as brands reformulate gel products to comply with global safety standards. While the risk from topical use is considered low, growing consumer awareness, especially among health-conscious clients, could drive demand for TPO-free alternatives. US salons may face temporary shortages, rising costs, and increased scrutiny over ingredient transparency, requiring proactive supplier communication and inventory adjustments.
• Consumer mood indicators in the US declined, signaling growing economic unease. The Consumer Confidence Index fell 1.3 points in August 2025, driven primarily by younger consumers under 35, while confidence among those over 55 improved. Despite the dip, overall confidence remained consistent with recent months. Separately, the University of Michigan’s Consumer Sentiment Index dropped to 55.4 in preliminary September data, down from 58.2 in August and 21% below September 2024 levels. Inflation expectations held steady, though concerns about pricing pressures, particularly from tariffs, persist. These indices reflect consumers’ outlook on personal finances and the broader economy, serving as key predictors of future spending behavior.

• 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.
• Nail salon services, included in the “Other Services” category, is one of the four industries reporting contraction in August’s Services ISM Report on Business. Executives in the Other Services industry also reported higher prices for materials and services, an increase in new export orders, a decrease in imports, and decreased employment. Other industries reporting contraction during the period were Accommodation & Food Services; Management of Companies & Support Services; and Construction. A dozen services industries reported growth in the period including Wholesale Trade; Arts, Entertainment & Recreation; Mining; Transportation & Warehousing; Educational Services; Professional, Scientific & Technical Services; Retail Trade; Utilities; Health Care & Social Assistance; Public Administration; and Real Estate, Rental & Leasing. Overall, economic activity in the services sector expanded in August for the third consecutive month, with the Services PMI registering 52%.