Total revenues for all salon industry services (hair, skin, nails) plus salon retail grew at a sluggish 2.7%, according to the new 2013 Professional Salon Industry Haircare Study from Professional Consultants & Resources, a leading salon industry strategic consultants and data source. The total U.S. salon haircare market segment (services plus retail) registered $64.8 billion, representing growth of just 2.3%. There are nearly 301,000 salons and barbershops using and selling haircare products in the United States.
“The state of our salon industry is weak and rapidly changing,” says Cyrus Bulsara, president of Professional Consultants & Resources. “Major national macroeconomic factors impacting the salon industry include generally lower disposable incomes, high real unemployment, government regulations slowing expansion, wage and job uncertainty created by national health care, and the U.S. Fed and fiscal policy. Haircare product sales like shampoos, conditioners, hair sprays, hair styling and specialty products are being hurt by the dynamic shift toward family-economy chains and chair/suite rentals, which do not sell products effectively. The only bright spot is hair coloring services with a 3.7% growth, due to an aging population and the desire for fashion hair color. Keratin and straightening services also grew at about 3.5%. Cutting and styling services grew by less than 2%. Nail care services also grew at a lower rate of 7.5%, due to the weak economy.”
Major highlights of the study include:
• The hot men’s sector grew more than 7%. The 2013 study details men’s salon services and provides an in-depth analysis.
• A dynamic shift continues from independent salons and mid-tier chains toward family-economy chains and chair/suite rentals and upscale men’s barbershops. Manufacturers, chains and salon industry sectors should not ignore this transition.
• Sales at major U.S. distributor Beauty Systems Group (BSG) grew 5.1%, while sales by L’Oréal’s SalonCentric declined 2.7%.
• Sally Beauty store sales were flat, due to lower disposable incomes and, consequently, lower sales to both salons and consumers.
• C and D class chair/suite rental salons and consumers shop at Sally stores. High-end independent salons, plus A and B class chair/suite rentals, drove full-service sales at BSG/Cosmoprof, SalonCentric stores and independent distributor stores.