Beauty Salon Industry- Some Interesting Facts That You Might Not Know

POSTED BY Sophie Jobs


The beauty salon industry is vibrant and is growing continuously at a rapid pace. According to the estimations, the global hair-care market will grow from US$69 billion in 2016 to US$87 billion in 2023. This article aims to review the industry closely and offers some recent salon statistics.


Coupled with the change in trend, the needs of the customers are changing. Now, they are looking for the best salon services and products. To meet these demands, the salon industry is regularly developing and evolving.

The charm of natural products never fades. The newest trends are fully inclined towards natural products that are skin-friendly, allergen-free, hypo-allergenic, alcohol-free, etc. Uniquely, for hair care, organic, eco-friendly, and cruelty-free products are more preferable. Equally, the market is more diversified as brands have started offering personalized products to customers. Solutions according to their requirements are more in demand now. Assuredly, this is solely for improving the customer base and their satisfaction rate.

In addition, the ways of acquiring the products have also changed. These days, purchasing tailor-made hair care solutions from local grocery stores, pharmaceuticals, and mass retailers is feasible.

Our professional copywriters have drafted this article after extensive research to reveal some of the impressive and surprising Salon statistics.

Beauty Salon Industry Recent statistics

Beauty Salon Startup Costs

The premises

While purchasing the salon, which is already in the operating stage, the cost will range from 40,000 to $250,000.

Equally, the variation of the price depends on many factors, like equipment, size, location and the condition of the premises, etc. When it is about building the new Salon, then, it will range between $100,000 to $500,000.

The equipment

Generally, the cost relies mostly on the Salon and the budget you hold. The overall Salon equipment fitting cost is around $27,000 approximately. It includes everything from clippers, scissors, to hood dryers and so on. Also, you can choose from a variety of styling stations with chairs and pick a price that fits the budget. The market price could be either US$200 or US$1,000.

Additional operating costs

As a matter of fact, if you rent a property, you need to pay a security deposit and a few months’ rent. Insurance, deposits, rents, and other utility expenses can be as high as $7,000. If you choose to run a family business, you can greatly reduce these costs.

In addition, it is recommended to place aside some money to pay legal fees. These costs may come from hiring a lawyer to examine franchise agreements or rental contracts. Attorney fees are at least US$200 per hour.

Salon Industry- Some Fascinating Facts and Figures

In 2019, U.S. industry revenue was 46.5 billion U.S. dollars. The industry includes more than 80,000 companies. In the Salon market (after the United States), the second-largest source of income is in Japan.

The 50 popular competitive salon industry operators in the United States make approximately 15% of revenue. The top 50 biggest barbershop operators account for approximately 30% of revenue. The Beauty salons account for nearly 95% of US hair and beauty salon industry revenue. The rest is accounted for by barbershops.

The size of premises for general establishment ranges from 1,000 to 1,500 square feet. The beauty Salons generally demands assistants, colourists, and hairstylists, to help them with drying and washing. They can also provide skin care, nail care and beauty treatment services. The business of the beauty salon industry and hair specialized products is another source of revenue generation. Products usually have more margins than services.

The operating cost could be 80% of revenue, majorly for labour and rent. For independent owned Salons, the salon owners also serve as part of the workforce.

The stylists rely on the commission from the potential customers. The tips are expected to generate 50% of the service revenue. For the receptionists, the commission can be earned by selling the beauty products to the customer. Lately, the average hourly salary of cosmetologists, hairstylists, and hairdressers was US$12.54. And, for barbers, it is $14.50.

Statistics of Salon artist employment

The cosmetologists, hairdressers and barbers hold 766,100 jobs in 2018. More than 75% of barbers were self-employed. As per the Professional Beauty Association, women have employed 60% of the Salons in the US. Most of the cosmetologists, hairdressers, and barbers are working in the salon and barbershop. The rest are employed at resorts, hotels and spas.

The employment of hairdressers, cosmetologists, hairdressers, and barbers is expected to grow by 7% from 2018 to 2028. Styling and haircutting are also contributing more to 45% of the industry revenue. The other 17.1% is from tinting and hair colouring.

The styling and haircutting services are the main groups for Beauty Salons in the US. They are accounting for almost 55.2% of total revenue in 2019.

There are 90% of the beauty companies that are related to nail technicians and hairstylists and they rent a booth from nail and hair salons. The merchandise sales account for generating 7.2% of industry revenue.

The retail sales of professional-grade cosmetics and hair in hair salons accounted for 14.3% of the industry’s revenue. The shampoo has the highest market share in the field of hair care. The estimation says that by 2023, sales will increase to 30 billion U.S. dollars, as compared with 24 billion U.S. dollars in 2016. 82% of the world’s top hair and beauty brands have been on the market for 60 years approximately.

The revenue from nail care services can reach h15.9% of industry revenue. By now, Skincare is idle at 4.2%. Its services involve cleansing facials, temporary makeup, body wraps, masks, etc.

Compelling Customer Facts

Customers of age 25 to 34 account for approximately 16.5% of the market. Because of their less disposable income levels, they are less likely to buy pricey salon products. Only the basic nail and hair services are chosen.

The customers aged between 35 and 44 attain the largest segment of the market. Their interest is more towards personal care items. They are likely to purchase services such as permanent hair modifications like keratin treatments and hair colouring etc.

The customers of age between 45 and 54 are liable for 23.0% of industry revenue. Their average spending on personal care products is $96.00 higher than the typical American customer. Their disposable pay is often higher, enabling them to buy more expensive services.

Customers aged 55 and older account for 25.4% of the industry’s revenue. Their purchasing is more in hair services comparative to nail services. They prefer to pick less expensive hair treatments.

Women’s sales in hair salons have always been higher, notably because they purchase more expensive treatments, like straightening or perms.

In American nail salons, women account for 97% of all customers. The normal American spends around $89.95 on hair care products each year.

In 2017, African-American buyers spent $473 million on hair care products, accounting for 8.8% of sales that year.

From the reports of the hair care industry, approximately 52% of the customers are buying organic or natural shampoo. 50% of the customers in the world prefer to purchase beauty and hair products.

63% of the customers who get hair care and beauty products have much trust in brands they can search on Instagram. Also, 52% like to buy the product if they notice the ad on Facebook.

Compared with people aged 35 to 64, millennials are 40% considered Instagram for inspiration. In the United States, approximately 70% of women use hair colouring products. Just 12% colouring their hair at home and in salons follow the advice of hairstylists.

In the past decade, the “blow dry bars” are gaining more popularity; these are basically the hair salons in the US that extensively provide blow dry services.

There is no doubt in the fact that the demand for advanced hair care services will grow in the future. It involves hair straightening, hair colouring, etc.

The Salon market is mostly dependent on these factors as population growth. With an increase in the population, the beauty services demand will definitely increase.

The Salons of small size are competing successfully with large and popular brands. Their aim is to offer excellent treatments and exceptional quality of service. You can find these types of Salon in favourable locations.

As far as it is about Salon marketing, social media plays an important role. You can post your Salon’ offers or promotions on social to engage more and more customers. Influential people have established partnerships with businesses and brands.

Instagram has approximately 500 million daily users and 1 billion monthly users. These statistics make it a unique marketing space.