New York, NY (PRWEB) August 27, 2014
About 30.0 million Americans use indoor tanning services each year, which consists of using indoor ultraviolet (UV) tanning beds and spray tanning equipment. Over the past five years, the industry has grown as US consumers have become wealthier due to higher employment, which has precipitated rising per capita disposable income and consumer confidence. Consequently, demand for personal services and other luxury services has risen as consumers increase their spending on discretionary items and services. However, the industry's largest hurdle remains the looming pressure from regulatory agencies and industry groups such as the American Academy of Dermatology, who seek to increase education surrounding the potential dangers associated with indoor tanning. Consumer wariness toward industry services continues to rise and has dampened industry growth. Growth is expected to slow in 2014, as health concerns mitigate improving macroeconomic conditions.
According to IBISWorld Industry Analyst Jeremy Edwards, “The number of industry enterprises is expected to rise over the five years to 2014; however, larger industry players are consolidating their position in the industry to improve profitability and become more efficient in marketing operations.” For example, major industry player, Palm Beach Tan, acquired regional competitors such as Cincinnati Tan and Planet Tan.
Over the next five years, industry growth is expected to slow as gains in consumer disposable income will be slow and steady, while consumer confidence will trend up. “The industry is expected to generate more income through sunless tanning beds and merchandise, which will increasingly cater toward consumers looking to make luxury purchases,” says Edwards. Nonetheless, the US Food Drug and Administration's ruling to class sunlamps and UV lamps as moderate-risk devices will exacerbate existing fears regarding the danger of industry services. Furthermore, state regulation preventing consumers under the age of 18 from using industry products will shrink the supply pool of customers.
For more information, visit IBISWorld’s Tanning Salons in the US industry report page.
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IBISWorld industry Report Key Topics
Tanning Salons includes companies that provide indoor tanning services through UV tanning beds and booths, as well as spray-on tanning services.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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