The salon and spa industry creates a new business opportunity to help people feel good about who they are and how they look. About half of the industry revenues are generated through salon services, while the other half is provided by spa services.
Within this industry, small salons contribute to a majority of the opportunities that are available. The 50 largest salons and spas in the United States are responsible for just 15% of the revenues generated.
In 2015, the global wellness industry had a value of $3.7 trillion, with anti-aging and beauty segments worth $1 billion on their own. What makes this industry unique is that the market segments are quite diverse, with many consumers being part of the salon and spa industry without always realizing it.
Options include healthy eating, personal fitness, alternative medicine, and weight loss in addition to haircuts, nail treatments, and skin rejuvenation.
Important Salon and Spa Industry Statistics
#1. Salons and spas in the United States generate $44 billion in revenues each year. From 2012 to 2017, the industry grew at an average annualized rate of 1.8%. (IBIS World)
#2. There are currently 1 million firms operating within the U.S. salon and spa industry, providing direct employment opportunities for over 1.4 million people. (IBIS World)
#3. Haircut and styling services are the primary need for customers who visit establishments in the industry, accounting for more than 45% of the revenue opportunities. Hair coloring and tinting services are responsible for 17% of revenues, while nail care services provide 16% of the opportunities. (Statista)
#4. 27% of the customers who frequent the salon and spa industry are between the ages of 35-44, making this the largest age demographic. Another 48% are above the age of 45. Only 8% of consumers under the age of 25 visit businesses within this industry. (IBIS World)
#5. Barbershops are a unique segment of the salon and spa industry, generating around $800 million in revenues each year. (Statista)
#6. There were 33,000 vacant positions within the salon and spa industry in 2017 at U.S. facilities. 61% of salons and spas were actively trying to fill open positions. (International Spa Association Foundation)
#7. Around 70% of spas offer the option for customers to book a treatment online, with 83% saying that they use social media to share discounts or promotions with their customer base. (International Spa Association Foundation)
#8. Specialty products sold by the salon and spa industry in the United States show nearly 7% growth, led by natural oil products designed to offer thermal protection or extra shine. (Modern Salon)
#9. There are more than 16,000 spa establishments which are currently operating in the United States. Over 187 million visits to a spa happen each year. (Statista)
#10. Employers in the United States spend $693 each year, per employee, on wellness incentives. (Statista)
#11. 83% of the corporate wellness programs are company-funded in the United States, encouraging consumers to look for spa and salon treatment options. (Statista)
#12. 52% of Americans say that the last massage they received was for a medical reason. Only 12% of consumers who utilize services provided by the salon and spa industry frequently use coupons for their purchases. (Statista)
#13. 9% of Americans say that they would like to take a wellness vacation over the next year. Only 1% of households will take the opportunity to take a spa retreat during a holiday. (Statista)
#14. 28% of Americans report that they regularly use the spa services which are available to them with their gym membership. (Statista)
#15. World travelers booked over 690 million wellness trips in 2015, which is over 100 million more trips than travelers booked in 2013. (Global Wellness Institute)
#16. Over 27,000 thermal properties or mineral springs were operational within the global salon and spa industry in 2015. Businesses associated with these properties earned $51 billion in 2015. (Global Wellness Institute)
#17. Since 2013, the spa industry has added more than 16,000 locations around the world. That growth equates to over 230,000 new direct employment opportunities and an additional $3.5 billion in earned revenues. (Global Wellness Institute)
#18. About 39 million Americans, or 18% of the U.S. population, had at least one massage in the last 12 months. Men are embracing the salon and spa industry more often, making up 47% of the customer base today. In 2005, men made up 31% of the customer base. (International Spa Association Foundation)
#19. People who are between the ages of 35 to 64 spend up to 14% above average on beauty services or products. When people in this age group are associated with a household that has children, they’ll spend up to 38% more than the average consumer. (San Francisco Chronicle)
#20. Hair coloring continues to be an anchor service for many salons, with a 3.6% increase in service demands experienced in 2016. Haircuts and styling saw 2.8% growth, while Keratin straightening and perms saw 2% growth. (Modern Salon)
#21. Although sales at L’Oreal were flat for the industry, major distributor groups in the salon and spa industry in the U.S. experienced growth of more than 5%. (Modern Salon)
#22. Great Clips records a 9.4% growth increase in 2016, while Sport Clips registered a 15% growth rate. This is due to their double marketing advantage – being an economy chain and being a family-friendly chain. (Modern Salon)
Salon and Spa Industry Trends and Analysis
Profits are increasing for the salon and spa industry around the world. In 2018, the industry was in the middle of a 10-year growth pattern that showed some signs of maturing. Although more locations and employment opportunities are available, the levels of growth are beginning to taper off in year-over-year comparisons.
There are some advantages that may continue keeping the salon and spa industry in a stage of growth. The cost to start a salon is minimal, even in the U.S., where some locations may offer a lease for as little as $75 per month.
Revenue growth within the industry is forecast to say at a 3% average through 2028. Changes to tax laws, consumer spending habits, and available discretionary spending may create positive or negative influences for the industry over the next decade, but it will not be affected by the threat of tariffs or consumer spending habits.
Salon and spa services tend to be the last cost removed from the budget and the first expense that is restored when household finances stabilize. That makes this industry an exciting opportunity for those who make be looking for employment or investment opportunities.