The beauty salon industry is mainly composed of small, independently owned salons.
An average salon offers services such as haircutting, styling, coloring, shampooing and permanents. Other salons have expanded their businesses to offer services such as nail care, facials, makeup application, waxing, massage, tanning and other beauty treatments. In a 2010 beauty salon industry analysis, IBISWorld estimates that there are 739,042 beauty salons, barbershops and spas in the U.S.
Entrepreneur’s Business Performance Dashboard of 2007 indicated the average beauty salon has seven employees and averages 14.6 years in the business. Demand in this industry is driven by demographics. Smaller salon businesses can compete with chain salons based on their reputation of technical superiority or desired location. Larger companies competing in this market include Regis Corp., Sport Clips and Supercuts, Inc.
According to salon and spa owner surveys conducted by the Professional Beauty Association in the first quarter of 2010, services sales, retail sales, employee hiring, and capital expenditures rose a half of a percent. In this beauty salon industry analysis, business owners remain optimistic about future industry growth.
The International Spa Association gauged current trends of customer showing 46 percent of salon, spa business owners saw an increase in the number of shorter treatments such as mini-facials or manicure touch-ups. However, these clients are still frequenting salons and spas opting for less expensive services to fit budgets.
A growing trend in the beauty industry is the increased use of medical spa salons, which also offer salon and spa services. According to The International Medical Spa Association in 2004, there were 2,500 medical spas in the U.S.. It is believed that medical spa services performed by a licensed physician, physician’s assistant or registered nurse will increase through 2010 as baby boomers age and demand for such procedures increases in younger women. In a study done by IAPAM, 78 percent of the women rated medical credentials as very important when choosing a medical spa.
A beauty salon industry analysis by the International Association for Physicians (IAPAM) in Aesthetic Medicine indicates that medical spa services such as Botox treatments, Botox cosmetics and medical weight management are gaining popularity as new beauty services. International Spa Association, who conducts regular beauty salon industry analysis of the beauty spa sector, has seen an 85 percent growth in medical spa services since 2007.
According to the Department of Labor Statistics, the need for hairdressers, hairstylists, and cosmetologists will increase by 20 percent by 2018, while employment demand for skin care specialists is expected to grow by 38 percent. Other beauty professionals such as manicurists and pedicurists can expect employment demand growth of 19 percent. This demand for new employees in the beauty industry is believed to be a result of a greater demand in services from aging baby boomers and a younger generation more likely to use beauty treatments and enhancements at a younger age.