Salon Services Market Size, Share & COVID-19 Impact Analysis, By Service Type (Hair Care, Nail Care, and Skin Care), By End-user (Women and Men), and Regional Forecast, 2023-2030

The global salon services market size was valued at USD 215.65 billion in 2022 and is projected to grow from USD 230.64 billion in 2023 to USD 383.88 billion by 2030, exhibiting a CAGR of 7.55% during the forecast period. Europe dominated the salon service market with a market share of 31.55% in 2022.

Salon services encompass all those practices performed in a salon, ranging from shaping, polishing, and cutting the nails to eyebrow threading, skin treatment, and hair cutting. Growing consumer awareness regarding the availability of personal care services, such as massages, facials, hairdressing, and nail enhancing & nail art, favors the market growth beyond the traditional barber hair-cutting services.

Hairdressing parlors worldwide are increasingly utilizing sustainable and scented hair shampoos & massaging oils to enhance the consumer experience. For instance, Sport Clips, a U.S.-based hair salon, uses steamed towels, massaging shampoos, and custom-blended proprietary scents while offering neck & shoulder treatments and hair-cutting services. The rising need for salons to innovate their service offerings will positively influence market growth over the forecast timeframe. Prominent players in the industry include a broad portfolio of services to stay ahead of the competition.

COVID-19 IMPACT

Closure of Barber Shops & Salons amid COVID-19 Pandemic to Impede Market Growth

The closure of barber shops and hairdressing salons worldwide due to the COVID-19 lockdown restrictions has impacted revenues globally, notably in 2020 and 2021. Governments across countries also encouraged individuals to refrain from visiting salons and follow social distancing norms to reduce their risk of coronavirus infection. From a service standpoint, issues concerning staff availability across salons challenged numerous industry participants amid the peak COVID-19 crisis. These factors hampered the global salon services market share despite the industry’s recovery in 2022.

According to the data published by the National Hair & Beauty Federation (NHBF), a U.K.-based trade association representing barbering, hairdressing, and beauty salon owners, in 2020,

• Social distancing restrictions lowered the salon services’ capacity in the U.K. by 70%


• The average cash loss to a salon business in the U.K. was USD 23,203.3


• The employment rate in the U.K.’s beauty and hair salon sector was reduced by 21%.

Easing lockdown restrictions across countries, which tends to reduce COVID-19 infections and deaths, has reopened barber shops and hair and nail salons, thereby uplifting salon businesses worldwide. Numerous players operating in the beauty salon services industry emphasize maintaining the environment sanitized and infection-free to build greater customer confidence. Such efforts will trigger the demand for beauty care products and services in the foreseeable future.

LATEST TRENDS

Emergence of Social & Mobile Salons to Create Lucrative Business Opportunities

The increasing need for industry players to create a steady inflow of customers is revolutionizing the global beauty salon market with the advent of social & mobile salons. A mobile salon is an establishment where beauty care services are provided near or at the customer’s location. This setup can be designed to offer services provided at a brick-and-mortar salon. Mobile salons can operate in a vehicle, typically a van or a trailer, rendering services at a client’s desired location. These salons can also involve service providers visiting the customer’s house/location and rendering services without using a modified vehicle. On the other hand, social salons refer to novel establishments that transform into a place of social and recreational activity. Given their purpose, social salons are usually designed to be aesthetically appealing.

DRIVING FACTORS

Rising Number of Barber Shops & Beauty Parlors to Favor Market Expansion

The rising number of barber shops, beauty parlors, and manicurist clinics worldwide offering various attractive services is one of the key drivers favoring market expansion. In addition, the growing expansion of hospitality establishments offering premium-quality services will favor industry expansion, given the rising number of international tourist arrivals across countries. For instance, in July 2022, the Indian Hotel Company Ltd. (IHCL), a salon management services company, opened two new unisex salons under the NIU&NAU brand in Bangalore (Karnataka, India). Establishing new salons highlights the increasing consumer demand for services worldwide. Furthermore, increasing preferences toward eco-friendly cosmetics and sustainably made & vegan cosmetic items will increase industry revenues in the near term.

Increasing Popularity of Online Appointment Booking Platforms to Strengthen Salon Services Businesses

Online appointment booking platforms are facilitating businesses to attract more consumers to their salons. Shedul, Rosy, and MINDBODY are the leading platforms worldwide specializing in online salon appointment bookings. Such digital tools also help salons track customer service preferences to personalize salon treatments. Given the advantages of online salon appointment booking tools, their utilization among salon establishments will likely gain momentum throughout the forecast period. According to industry experts, as of 2019, nearly 40,000 businesses and 150,000 hair stylists used Shedul, a popular salon management platform, to manage their operations regularly. From an online marketing standpoint, advertising salon services on social media sites and applications will boost the global salon services market growth.

RESTRAINING FACTORS

Intense Competition from Unorganized Players to Impede Market Growth

Industry players face intense competition from numerous unorganized barber shops & salons offering sub-standard services at relatively low costs, especially in Asian countries such as China and India. In addition, the intensely competitive landscape demands prospective beauty salon & hair care services market players to invest heavily in maintaining a stylish & visually appealing salon by buying salon equipment & products such as chairs, hair straighteners, and cutting equipment. This factor can be challenging for salons with budget constraints.

SEGMENTATION

By Service Type Analysis

Significant Consumer Spending on Hair Cutting & Dressing to Fuel Demand for Hair Care Services

Based on service type, the market is segmented into hair care, nail care, and skin care. The hair care segment dominates the global market due to various factors such as increasing demand for natural and organic hair care products, increasing consumer spending on hair cutting & dressing services, and the growing number of barber & hairdressing shops within the hair salon services industry.

According to the data published by Hair and Beauty Industry Confederation Ireland (HABIC), in 2019, expenditure on hairdressing-related products and services in Ireland reached USD 1,201.09 million, a 3.6% rise compared to the previous year. This statistical data mirrors global trends in the hair care services space.

The skin care segment is expected to grow considerably during the forecast period (2023-2030), backed by the increasing consumer inclination toward specialized skincare salon treatments such as facials and anti-aging & exfoliating massages. According to the ‘AMTA 2021 Massage Profession Research Report,’ published by the American Massage Therapy Association (AMTA), in 2021, nearly 92% of American adults believe that massage therapy effectively reduces body pain. This statistical data highlights the increasing popularity of skin care services across salons in the U.S. Discounted skincare services provided by professional beauty salons further surge the demand for skincare services.

The growing consumer awareness regarding the availability of manicures, pedicures, nail art & extension, and nail enameling services surges the demand for nail care services worldwide. In addition, the rising number of manicurists and nail care specialists contributes significantly to nail care services revenues. According to the U.S. Bureau of Labor Statistics (BLS) data, as of May 2021, there were 120,540 manicurists and pedicurists in the U.S., a 2.1% increase compared to the previous year.

By End-user Analysis

Rising Prevalence of Feminine Connotations in Salon Services to Favor Growth for Women Segment

By end-user, the market is segmented into women and men. The women segment holds the most significant market share, backed by the rising prevalence of feminine products and services offered across salons worldwide. Furthermore, services targeted at women are typically more expensive than men. According to a statement (May 2021), women's hair drying, washing, and cutting services cost approximately USD 40.33 (EUR 39.50) to USD 48.50 (EUR 47.50), whereas men's hair drying cut costs around USD 21.44 (EUR 21.00) in Germany.

The growing popularity of beard shaping, eyebrow threading, and body waxing services drives the growth of the men segment. Increasing awareness regarding personal grooming and hygiene among men further accelerates the demand for various services. Despite the overwhelming number of salons focusing on the women segment, increasing consumer knowledge of hair care and skin care trends drives men to experiment with various services across countries.

REGIONAL INSIGHTS

The global market is analyzed across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

Europe market size was valued at USD 68.04 billion in 2022. Europe will likely dominate the market globally throughout the forecast period, given the rising consumer spending on beauty products & services. According to the Global Wellness Institute Organization (GWI), Europeans spent USD 273.6 billion on personal care products & services in 2020. Many young hairdressers and beauticians characterize salons across Europe, offering novel services. According to the European Union (EU), a European political and economic union, in 2019, the number of employed hairdressers and beauticians aged 15 years was 1.7 million.

North America emerged as the second most prominent market in 2022. Led by the U.S., the rising popularity of facial, massage & nail treatment-related services encourage international players to penetrate the North America market. According to the data published by the American Massage Therapy Association (AMTA), a U.S.-based nonprofit association of massage therapists, nearly 25% of men and 21% of women in the U.S. got a massage service from salons in 2020. At a macro level, shifting beauticians' focus toward using premium-based and vegan cosmetic items while offering beauty treatment solutions in the United States and Canada will further create attractive business opportunities for prospective industry participants to exploit.

The Asia Pacific region is expected to witness significant growth in the coming years due to the rising number of hair and nail salons and beauty parlors in India and China. Recent years have witnessed significant competitive developments across the Asian market. For instance, in March 2022, Nykaa, an Indian beauty products retailer, partnered with Estee Lauder Companies, Inc., a U.S.-based multinational cosmetics manufacturer, to open a premier unisex hair care salon in India.

Brazil emerged as the most prominent in the South America market characterized by increasing digitization. Digital solutions in the market assist in streamlining salon management and backend operations.  For instance, in April 2022, Orado, a Columbian startup aiming to digitize beauty salons in Brazil and other South American countries, invested USD 5.0 million to increase its portfolio of salon management software in the region. The growth of the Middle East & Africa market is driven by increasing consumer preference for premium services, especially in the UAE and Saudi Arabia.

KEY INDUSTRY PLAYERS

Players Focus on Geographical Expansion to Stay Competitive

Internationally reputed beauty parlors and barber shops emphasize increasing their geographical footprint to increase their service revenues. In addition, numerous industry participants employ management software to offer an enhanced salon experience to their clients. For instance, in October 2022, Schwarzkopf Professional, owned by Henkel AG & Co. KGaA, a German consumer goods company, launched the SalonLab&Me brand, providing personalized hair-care recommendations based on a customer's hair type. This recommendation is carried out using SalonLab Smart Analyzer, the company's device for an in-salon hair consultation. Such efforts help industry players to stay competitive.

List of Key Companies Profiled:

• Great Clips, Inc. (U.S.)


• Regis Corporation (U.S.)


• Dessange International (France)


• Ulta Beauty, Inc. (U.S.)


• The Lounge Hair Salon (Thailand)


• Seva Beauty (U.S.)


• Drybar (U.S.)


• Skin Rich (U.K.)


• The Leading Salons of the World, LLC. (U.S.)


• Snip-its (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• November 2022: Reliance Retail, an Indian retailer, announced its plans to enter the salon business by acquiring Natural Salon & Spa, which operates over 650 salons in India. Through this acquisition, the Reliance brand will compete with major players such as HUL, a prominent player in the salon category.


• November 2022: Salon Azure, a Tennessee, U.S.-based brand, opened its first outlet in Guwahati, India, in 2022. The salon provides haircuts, coloring & styling, waxing & tanning, and a wide range of facial and skin care treatments and nail treatments.


• July 2022: Duo Carrie and Lauren Dunne, U.S.-based nail varnishing services experts, reopened their Vanish Lane brand’s waterless nail salon in Washington DC, U.S. The strategic initiative (nail salon launch) highlights the company’s intent to provide toxin-free products in its salon.


• June 2022: Hotel Sahara Star, a Mumbai, India-based hotel business, announced the launch of Jean- Claude Biguine Salon & Spa, a French beauty house in Mumbai. The salon offers hair, skin, nail, and beauty services.


• April 2022: Sola Salons, a U.S.-based salon studio franchise, announced the signing of four franchise agreements across Canada, including Toronto, Durham, Kitchener, Markham, Richmond Hill, and Hamilton. The franchise announced that these new agreements would establish nine locations across Canada in the near future.

REPORT COVERAGE

The research report analyzes the market in-depth and highlights crucial aspects such as prominent companies, sectors, and sales channel areas. Besides this, the report related to the industry includes insights and details into the market trends and highlights significant industry developments and the overall market outlook. In addition to the insights mentioned earlier, the project report poses several factors contributing to the market growth.

Report Scope & Segmentation