The Hair Salon in the US Industry Market Research Report Now Available from IBISWorld

The Hair Salon industry has managed to untangle its recessionary knots; going forward, it will continue to grow steadily. For these reasons, industry research firm IBISWorld has added a report on the Hair Salon industry to its growing industry report collection.

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Rising consumer sentiment and disposable income have increased demand for ancillary services.

New York, NY (PRWEB) May 07, 2014

The Hair Salon industry has managed to untangle its recessionary knots. Rising consumer sentiment and per capita disposable income have boosted industry growth over the five years to 2014. This has also led to increased demand for ancillary services to standard haircuts, such as hair modification treatments (e.g. straightening procedures and perms), skin care services and massages. However, mounting demand for at-home color treatments from drug and beauty stores has challenged operators to redefine their indispensability to consumers as the economy continues to recover. According to IBISWorld Industry Analyst Sally Lerman, “Industry revenue is expected to increase at an average annual rate of 1.9% to $41.2 billion over the five years to 2014.” As consumers have returned to their prerecessionary spending habits since 2010, revenue is estimated to increase 1.5% in 2014.

With a high rate of unemployment at the start of the period, some job seekers turned toward establishing themselves as nonemployer firms to help make ends meet through the economic downturn. As a result, the number of industry establishments has increased over the past five years at an average annual rate of 4.9% to 1.0 million. Low barriers to entry and a stable customer base have contributed to this increase as well. Profit margins have also been on the rise, surpassing prerecessionary levels. This is due to increased sales of high-priced luxury services, such as permanent hair texture modification and more-efficient management of expenses.

In the five years to 2019, the industry is forecast to exhibit more steady growth. Per capita disposable income and consumer confidence will keep rising as the unemployment rate continues to decline, providing consumers with more discretionary income for luxury services at hair salons. “With a greater amount of discretionary funds, consumers will be able to enjoy salon services instead of less-expensive, drug-store products,” says Lerman. Additionally, eco-friendly products are expected to become more prevalent as more consumers opt for a sustainable-living lifestyle. Revenue is expected to increase over the next five years.

The Hair Salons industry is categorized by low market share concentration. As the largest company in the industry, Regis Corporation generates just 3.9% of total revenue and is still 60.0% larger than the next-biggest company. The Hair Salons industry is highly fragmented, with most operators located in high-traffic areas but others located in niche markets. Additionally, low barriers to entry allow small companies to set up locations without the backing of larger operators. The fragmented nature of this industry makes it difficult for any one company to gain a large share of the industry. This is highlighted by the dominance of nonemployers in the industry, which account for over 90.0% of industry enterprises and over 50.0% of total revenue.

For more information, visit IBISWorld’s Hair Salon in the US industry report page.

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IBISWorld industry Report Key Topics

The Hair Salon industry includes salons that primarily offer hair care services such as haircutting, hair coloring and hairstyling services. Additionally, these companies may provide facials and makeup applications (except permanent makeup) and retail beauty products. This industry does not include operators that primarily offer training in barbering or hairstyling.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.

Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.


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    IBISWorld
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