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 30,300 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 3-4 workers, and generates around $208,000 annually.

    • The US government reports over 30,300 firms that employ 124,000 workers and generate $6.3 billion in annual revenue. Non-employer statistics, which cover the self-employed and businesses with no paid employees, report over 262,200 establishments and over $9.1 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 nearly 800 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-owned salons account for about half of the industry.
                            Industry Forecast
                            Nail Salons Industry Growth
                            Source: Vertical IQ and Inforum

                            Recent Developments

                            May 6, 2023 - Personal Care Services Prices Up Year-Over-Year
                            • As measured by the US Bureau of Labor Statistics' Consumer Price Index (CPI), haircut and personal care services prices were up slightly month over month in March 2023 and more than 5% year over year. Inflation increased 0.1% month over month in March and more than 5% year over year. The CPI measures the monthly change in prices paid by US consumers for goods and services. The year-over-year increase, while well above the Federal Reserve's 2% target for a healthy inflation level, was the lowest 12-month increase since the period ending May 2021. The so-called core CPI, which excludes volatile energy and food prices, increased 0.4% month over month and 5.6% year over year. The energy index decreased 3.5% month over month and fell 6.4% year over year. Food prices, however, had no change month over month and were up 8.5% from a year earlier.
                            • Consumer confidence levels fell in April 2023 after a slight increase in March 2023, according to data from The Conference Board. The Conference Board’s consumer confidence index dipped to 101.3 in April 2023 from 104 in March 2023. According to Ataman Ozyildirim, a senior director of economics at The Conference Board, “Consumers became more pessimistic about the outlook for both business conditions and labor markets. Compared to last month, fewer households expect business conditions to improve and more expect worsening of conditions in the next six months. They also expect fewer jobs to be available over the short term. April’s decline in consumer confidence reflects particular deterioration in expectations for consumers under 55 years of age and for households earning $50,000 and over.” Plans to purchase appliances, autos, homes, and vacations cooled in April 2023, a sign that consumers are pulling back amid reduced optimism, per Ozyildirim.
                            • The professional beauty services market is projected to grow at a CAGR of nearly 5% from 2022 to 2031, reaching $348 billion, according to a new report from Allied Market Research. The professional beauty services market was valued at $211 billion in 2021. The market is benefiting from a shift in consumer attitudes toward personal care, emphasizing improving overall well-being. Men are expanding the base as they increase their beauty spending thanks to a rising consciousness about well-being and appearance. The male segment is expected to grow at a CAGR of 5% in the market during the forecast period. New popular nail care services are helping to drive growth. According to the report, “In addition to basic manicures and pedicures, nail services include manicure styles, extensions, and a growing trend in artificial nails with various design offerings and adornments which surge the demand for the professional beauty services market.”
                            • A new model of robot manicurists from the Clockwork company will be rolling out in 2023, according to The new robots are fully autonomous, with live customer support available by pressing a button. One of the next-generation robots is located in the LinkedIn office building lobby in San Francisco, according to an email to customers quoted in the article. Clockwork recently completed a year-long test of an earlier version of its “MiniCures” robot through a pilot program at several Target stores in Dallas. The nail-painting sessions took 10 minutes and cost $10, assisted by a human attendant to help position hands and tidy up polish afterward. Earlier test markets included cities in Minnesota and California. The robots rely on cameras, data, and algorithms to determine the shape of the nail and how to apply the paint to customers’ nails.
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