Improved Economy Boosts Salon Business

There are nearly 303,000 salons and barbershops in the US that use and sell salon haircare products, and business is on the upswing. Total revenues for all salon industry services (hair, skin, nails) plus salon retail grew at a respectable 3.1%, according to the new 2014 Professional Salon Industry Haircare Study from Professional Consultants & Resources. The total US salon haircare market segment (services and retail) registered $67.02 billion, representing growth of 3.2%.
 
Haircoloring is the all-important “anchor” service at most salons and brings in clients for all other services like cuts, styles, straightening etc. Haircoloring services are up nearly 4%, due to a graying population and huge new demands for fashion haircolor, including blonding, highlights, duo-lights, balayage, ombré/sombre, vibrants/vivids and pastels. Keratin straightening services grew at around 3.5%. Cutting and styling services grew at 2.5%, as client visit frequencies increased.

“The state of our salon industry is now in a growth mode and evolving,” says Cyrus Bulsara, president of Professional Consultants & Resources.“Major macroeconomic issues affecting the salon industry like lower disposable incomes, unemployment, government regulations slowing expansion and wage/job uncertainty are abating. Haircare product sales of shampoos, conditioners, hair sprays, hair styling products and specialty products are up but still impacted by the dynamic shift toward chair and suite rentals, which do not retail effectively. Consequently, product sales at mega salon stores are up and diversion goes on to fulfill demand.”