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 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-owned salons account for about half of the industry.
                            Industry Forecast
                            Nail Salons Industry Growth
                            Source: Vertical IQ and Inforum

                            Recent Developments

                            Nov 18, 2023 - Employment, Wages Up
                            • Employment levels for the nail salons industry climbed modestly at the end of Q3 2023 and remained at higher levels on a year-over-year basis. Employment costs have climbed significantly in recent years as hourly wages have grown more than 40% since 2019. US consumer spending has increased modestly in 2023, with budget-conscious shoppers being more selective with their purchases. Sales for the US nail salons industry are projected to rise at a nearly 10% CAGR from 2022 to 2027 showing the strength of the beauty industry, according to a recent Inforum forecast. This rate is faster than the projected growth of the overall economy.
                            • Nail professionals may see increased demand for certain nail services in the fall months, according to a recent report in Salon Today. GlossGenius used appointment data from 2022 to investigate which services increased in popularity during September, October, and November compared to the April through August period. GlossGenius found a nearly 18% increase in nail art during the fall months, tied to seasonal events such as back-to-school and holidays, including Halloween and Thanksgiving. Nail salons that promote these services can drive additional traffic.
                            • Dry pedicures, a pedicure done without a foot soak, are growing in popularity with clients, according to InStyle. One salon offering waterless pedicures is GLOSSLAB, which has 20 nail studios in the US. Dry pedicures became more common in the 2000s when news about unsanitary procedures at nail salons was circulating. A dry pedicure is the most sanitary way to receive the service because it eliminates the possibility of cross contamination from other clients and infections from water-borne bacteria, according to nail salon owner Lilly Rojas, who was quoted in a recent NailPro article. She said waterless pedicures can still be relaxing because the nail tech can use heated towels instead of a soaking tub for pampering. Another benefit of a water-free pedicure is longer-lasting polish. A dry pedicure is also more suitable for clients with diabetes since foot soaking is discouraged due to the increased risk of infection.
                            • More than 60% of hourly employees plan to leave their positions in the next 12 months, according to a new report in Chain Store Age. The “State of the Hourly Workforce” report by workforce management platform Legion Technologies surveyed 1,500 employees and 600 managers. Nearly 65% of workers said they plan to leave their current industry altogether. Not enough schedule flexibility, not enough benefits, and undesirable working conditions are the top factors that make an hourly job undesirable. Pay issues were also raised by respondents. More than 60% of hourly employees want to be paid every week, and getting paid early (early wage access) is becoming a differentiator for employers.
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