Nail Salons
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 32,000 nail salons in the US provide nail care services, such as manicures, pedicures, and nail extensions. Manicures and pedicures account for over 85% of industry sales. Nail salons may also offer skin care, hair removal, or other spa-related services. Specialty services include waxing, eyebrow shaping, massage, wraps, reflexology, and eyelash services. Nail technicians may be employees or may rent booth space from the salon and act as independent operators.
Competition From Alternative Service Providers
Nail salons face competition from a variety of alternative service providers, including full-service beauty salons, spas, and clients themselves.
Health Risks For Workers
Nail care services expose workers to chemicals from polishes, removers, and glues, such as formaldehyde, toluene, and methacrylate compounds.
Industry size & Structure
The average nail salon operates out of a single location, employs 4-5 workers, and generates around $430,000 annually.
- The US government reports over 32,000 firms that employ 148,000 workers and generate $12.9 billion in annual revenue.
- Non-employer statistics, which cover the self-employed and businesses with no paid employees, report over 252,200 establishments and over $5.5 billion in annual sales. Non-employer statistics cover nail technicians who rent booth space from individual establishments and act as independent operators.
- The industry is highly fragmented; the top 50 companies account for less than 3% of industry revenue.
- The nail salon industry includes small chains, franchises, and independent operators. With 900 locations, Regal Nails is the largest franchise in the US and operates locations in Walmart stores.
- Many business owners are immigrants. Vietnamese and Vietnamese-American owned salons dominate the industry, although Korean immigrants have established a stronghold in New York City. Vietnamese and other Asian-owned salons account for about 75% of the industry's employer establishments.
Industry Forecast
Nail Salons Industry Growth
Recent Developments
May 24, 2024 - Spending, Wages Increase
- Consumer spending levels increased for the second consecutive month in March 2024, up 3.1% year over year and up 0.5% from the previous month, according to personal consumption expenditures data from the Bureau of Economic Analysis. Employment by nail salons rose 1.7% in March 2024 compared to a year ago, according to the Bureau of Labor Statistics. Wages at hair, nail, and skin care services grew 3.7% in March 2024 compared to a year ago, reaching $23.84.
- A new report by the New York Healthy Nail Salons Coalition found that female nail technicians experienced a higher occurrence of reproductive health issues compared to other women, according to Safety + Health Magazine. The report points to chemicals in nail salons as contributing to serious health risks for workers, and it recommends strengthened enforcement and compliance for nail salons. The report included a survey of over 300 nail technicians in New York City. Per the survey, 17% of nail technicians said they had reproductive health issues, which is six percentage points higher than the figure for women in the general population. In addition, 18% reported they had pregnancy complications, compared to 8% of women in the general population, and 7% had children with birth defects compared to 2-3% in the general population.
- Consumer confidence levels fell in April 2024 from March 2024, marking a third consecutive month of weakness, according to data from The Conference Board. The Conference Board’s consumer confidence index was 97 in April 2024 from 103.1 in March 2024. According to Dana Peterson, Chief Economist at The Conference Board, “Confidence retreated further in April, reaching its lowest level since July 2022 as consumers became less positive about the current labor market situation, and more concerned about future business conditions, job availability, and income.” Peterson added that confidence declined among consumers of all age groups and for all income groups except those in the $25,000 to $49,999 range. Plans for vacations, home purchases, and large appliances decreased on a six-month basis.
- A new beauty trends report from Fresha shows that over half of Gen X (54%), Gen Z (52%), and Millennials (51%) view beauty and wellness services as an essential part of their life, according to Nailpro. In comparison, only 37% of Baby Boomers view beauty and wellness services as essential, with 57% seeing the services as an indulgent treat. Appointments are also getting longer, which is a plus for younger generations. About 70% of appointments in 2023 were between 30 to 90 minutes, which is an increase of 18% since 2018. Millennials (60%) and Gen Z (58%) said they don’t mind spending longer in the beauty chair. Fresha CMO Steve Rodgers noted, “The beauty and wellness experience allows consumers to switch off from social media, work emails and phone calls and completely focus on prioritizing themselves.”
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