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    Breaking News

    Sluggish Economy Impacts Salon Services in 2017

    Hair color remains lifeblood of the category, according to new study from Professional Consultants & Resources.

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    02.28.18
    Overall revenues for all salon industry services (hair, skin, nails) plus salon retail grew only 2%, according to the new 2017 Professional Salon Industry Haircare Study from Professional Consultants & Resources, the leading salon industry consultants and premier data source. Total US salon services and salon retail sales grew by 2% to $63 billion. Nearly 257,000 salons and barbershops in the United States use and sell salon hair care products. However, the salon count declined by 5%, as many traditional, commission-based salons closed, and beautiful, large, new salon suites opened.
     
    “The state of our salon industry is weak and in a very low growth mode, due to multiple factors,” said Cyrus Bulsara, president of Professional Consultants & Resources. “The salon suites tsunami has resulted in salon retail moving to Ulta, Amazon, online sales and mass-retail diversion sales. Haircolor in salons has slowed, due to high costs and lower salon visit frequencies, plus a growing number of women embracing their natural gray, silver or white. Many women opted for cheaper cuts at family-economy chains like Great Clips and styled their hair at home. More men went to Sport Clips and sport-themed barbershops. Family-economy salons grew robustly. Sales of haircolor, shampoos, conditioners, hair sprays, hair styling products and specialty products all increased, but at much lower rates. Major M&A activity at Coty and Henkel, created down-stocking and realignments. With the U.S. economy trending up, future growth is expected. High performance new care products, new haircolor lines, swanky, large salon suites and new management at top manufacturers will drive sales.” 
     
    Hair coloring remains a vital anchor service at U.S. salons, attracting clients for all other services like cuts, styles, perms and straighteners. Hair coloring services grew only 2.6%, primarily from Boomers needing gray-coverage and young adults’ demands for fashion haircolor like blonding, highlights, baby-lights, balayage, sombrés and shadow roots. Vibrants, vivids and pastels slowed. Keratin straightening services grew slightly. Cutting and styling grew at a low 2.3%, as client visit frequencies decreased, and more heads were done at lower prices, at family-economy chains and rentals. Blow-dry bars grew very strongly at a rate of 25%, in both revenues and number of locations.
     
    Men’s hair color grew strongly, according to the study, which offers a detailed analysis of men’s salon services and product sales.  
     
    Sally Beauty store sales were flat, due in part, to adverse weather events, like hurricanes and floods, in Texas, Florida and Puerto Rico, according to PCR.
     
    New in this year’s study are detailed salon counts for every major US salon chain.

    In the PCR study, which provides market shares for every company, L’Oréal Professional, Coty Professional and John Paul Mitchell Systems, respectively, ranked as the top three manufacturers. Henkel vaulted into fourth place with Schwarzkopf, Sexy Hair, Kenra, Alterna and Pravana. (The company acquired Joico and Zotos from Shiseido at the end of 2017.) Estée Lauder with Aveda and Bumble ranks next. Unilever (TIGI and Alberto-Culver), Revlon Professional (American Crew/Roux) and KAO (Goldwell/KMS) followed. Luxury Brand Partners and Keune Haircosmetics North America, both achieved double-digit growth. 
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