Hair & Nail Salons in the US Industry Market Research Report from IBISWorld Has Been Updated

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The Hair and Nail Salons industry is projected to expand over the five years to 2015 thanks to rising consumer spending on discretionary personal care products and services. For this reason, industry research firm IBISWorld has updated a report on the Hair & Nail Salons industry in its growing industry report collection.

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Salons will offer an array of eco-friendly products that appeal to emerging consumer preferences

The Hair and Nail Salons industry is projected to expand over the five years to 2015 thanks to rising consumer spending on discretionary personal care products and services. During the period, revenue is expected to increase slowly. This industry is composed of salons that offer haircuts, facials, hair modification treatments (e.g. perms and straightening procedures), massages, deluxe spa manicures and pedicures. Improved disposable income, declining unemployment and an increasing number of new products and services have favorably impacted industry revenue, which is expected to grow slightly over 2015.

In the past five years, companies have continued to enter the industry, attracted to its stable consumer base and low barriers to entry. Over the five years to 2015, the number of industry operators is anticipated to increase marginally. According to IBISWorld Industry Analyst Britanny Carter, “Operator growth has been spurred by a rising amount of nonemployers and nail salons entering the industry.” This industry is also highly fragmented, with the top four companies controlling less than 10.0% of the market share. In fact, based on census data, IBISWorld estimates the vast majority of industry operators do not have employees. In the aftermath of the recession, average industry profit margins have rebounded considerably, growing due to rising service prices and improved spending on high-margin merchandise and services.

The Hair and Nail Salons industry is highly fragmented; operators are spread across many locations to be close to key consumer markets in high-traffic locations. In addition, barriers to entry are extremely low for the industry, further contributing to a high level of fragmentation. This trend makes it difficult for one company to serve a large portion of the entire market. In fact, the industry is dominated by non-employers which make up the vast majority companies in the industry. This includes hair stylists and nail technicians that are sole proprietors and rent their booths from hair and nail salons. Nonemployers collectively generate just over half of the industry's revenue. The market leader, Regis Corporation, controls a very small percentage of the market.

Industry growth is expected to accelerate over the five years to 2020 thanks to improving disposable income, with revenue rising slightly. “Declining unemployment during the next five years is expected to drive per capita disposable income growth and boost demand for price-premium services offered by this industry,” says Carter. Moreover, equipped with larger budgets, consumers will likely favor professional salon products and services over less costly alternatives sold at drugstores. Environmental concerns are expected to become more prevalent during the next five years, which will lead to salons offering a wider array of eco-friendly products that appeal to emerging consumer preferences. More specifically, toxic-free products will prove beneficial to industry revenue, as well as staff and patrons.

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

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IBISWorld industry Report Key Topics

This industry comprises salons that primarily offer hair and nail care services. In addition to retailing beauty products, these companies may also provide facials and makeup applications. This industry does not include operators that mainly offer training in barbering or hairstyling, nor does it include electrolysis, permanent makeup application or tanning services.

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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Gavin Smith
IBISWorld
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