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 26,300 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 $312,000 annually.

    • The US government reports over 26,300 firms that employ 102,400 workers and generate $8.2 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

                            Dec 8, 2022 - Salons Tweak Strategies for 2023
                            • Salon owners are adjusting their offerings, and their marketing plans to meet the challenges 2023 may bring, according to American Salon. Just as salons were recovering when pandemic conditions improved, some salons saw customers pull back on beauty spending to save money amid inflation and economic uncertainty. However, in a recent American Salon Business Sentiment survey, some salons report that their businesses have fully recovered. To either keep or rev up momentum, some salons are holding drawings and creating special pricing promotions. Others are developing referral programs to reward loyal clients who help beef up the book of business by referring friends and family. Salons are also leveraging client data with customer relationship management (CRM) software to offer more personalized services.
                            • The US professional nail care market is still recovering from the challenges it endured during the height of the pandemic, according to a recent report by Kline, a management consulting and market research firm. The nail care industry notched annual growth of 8% in 2021 over 2020, but that was still down compared to 2019. The top three product categories in 2021 were gels, nail enhancements, and nail polish. The industry is forecast to experience average annual growth of 6.9% through 2026.
                            • XWELL - a family of brands providing health, beauty, and wellness services in airports worldwide – is teaming with robotic manicure firm Clockwork to bring robotic manicures to 28 of XWELL’s airport spas in 2023, according to Nail Pro. The Clockwork MiNiCURE is a fully autonomous, AI-powered robot that can paint nails without human intervention. After selecting nail polish, customers load the cartridge into the MiNiCURE machine, place their hands on a hand rest, say, “ready,” and the robot safely paints each nail individually.
                            • Online beauty and wellness marketplace provider StyleSeat, analyzed Google business listings in the 50 largest US cities to determine the cities with the best hair care and other beauty and wellness offerings. StyleSeat ranked the cities according to the number of hair-related businesses per capita and the businesses’ average consumer ratings. The results showed that the best cities in the US for hair services, in order, were: Portland, Oregon; Buffalo, New York; Richmond, Virginia; Birmingham, Alabama; and Salt Lake City, Utah.
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