Summary of our market study

The global beauty salons and spas market faced a decline due to the COVID-19 outbreak, dropping by 4% in 2020 but has been recovering since 2021 with an expected CAGR of 4.7% from 2020 to 2027, aiming to reach $191.6 billion by 2027. The market's growth attributes to rising disposable incomes and urbanization in emerging countries. In the U.S., consumer fear of COVID-19 transmission affected demand, with up to 36% of respondents hesitant to seek facial care in 2022.

Digital presence has surged as 27% of businesses enhanced their digital services for appointments post-crisis, and 47% of beauty clients interacted with salons or stylists via social media. The sale of DIY beauty products also saw a notable increase, especially in nail care and hair coloring. In the U.S. market, beauty salon revenues accounted for $18.1 billion of the $24 billion total market sales in 2022. Regulations remain stringent, with each state requiring specific cosmetology licenses and adherence to hygiene standards.

Trends and Expectations in the U.S. Beauty Salon Market

The U.S. beauty salon market reflects a dynamic and evolving landscape influenced by consumer behaviors, technological advancements, and post-pandemic adjustments. Analyzing the current demand, it is evident that hair-related services are significantly sought after by American women, particularly those who indulge in three or more treatments annually. Despite the health crisis, which saw an uptick in fears related to in-person services, a considerable proportion of consumers, around 30%, do not share this hesitancy. Nevertheless, safety measures like reduced occupancy rates have a 43% consumer preference, indicating the importance of maintaining some pandemic-induced changes. In the face of the COVID-19 pandemic, the DIY beauty trend witnessed a surge, with categories like nail care and hair coloring. This rise in at-home beauty product sales could pose a challenge to traditional beauty salons if consumers continue this self-care practice. However, the demand for professional beauty services is not waning, as evidenced by the reliance on digital means to connect with these services. The online presence of beauty salons is also growing, with fully digital appointment bookings accounting for 34%, a figure that surges to 38% among younger clients like Millennials and Gen Z.

Social media platforms are becoming pivotal in customer-salon interactions, with nearly half of beauty clients utilizing these platforms and 28% of beauty product sales occurring via social networks. The American beauty salon industry has also perceived a growing interest in skin care across demographics, with approximately 35 to 48% of Americans prioritizing it, especially among the under-40 population segments. Men’s grooming services, such as beard care and advanced skin treatments, are gaining prominence, presenting opportunities for market expansion. Sector segmentation and revenue distribution further illustrate the market structure, with beauty salons commanding a notable share of industry sales, estimated at about 75.6%. It's clear that while the U.S. beauty salon industry faces challenges like health-induced concerns and DIY product competition, opportunities abound in virtual offerings, targeted male services, and leveraging the digital pivot for sustained growth in the face of changing consumer preferences.

Key Players Shaping the Beauty Salon Industry Landscape

In the dynamic and competitive world of beauty salons, several influential entities have carved out notable positions and established themselves as leading agents in the market. Their innovative approaches, comprehensive service offerings, and strategic market positioning help define industry trends and consumer expectations. Below, we spotlight some of these principal actors whose contributions have shaped the beauty salon industry.

  • Procter and Gamble (P&G) As a giant in the cosmetics and personal care sectors, Procter and Gamble stands out with its diverse portfolio of trusted brands that extend their reach into the realm of beauty and grooming. P&G's impact is felt not just through product sales but through shaping the standards of beauty care across various segments including hair care, skin care, and personal grooming items. Their market leadership and extensive research contribute crucially to industry trends and consumer habits.
  • L'Oréal L'Oréal's prominence as a global beauty leader is unquestioned, with its vast array of cosmetics, skincare, haircare, and perfumes. The company's firm commitment to research and innovation, along with its powerful marketing strategy, allows it to retain a significant influence over the beauty salon market as it collaborates with professionals to offer top-quality products and treatments.
  • My Salon Suite As a network of professionals in the beauty sector, My Salon Suite provides beauty professionals with personal salon spaces. This company enables a diverse range of beauty specialists to cultivate their entrepreneurial ambitions and serve their clientele with a more personalized touch, thus meeting the growing demand for individualized beauty experiences.
  • The Lash Lounge Specializing in eyelash extensions and related services, The Lash Lounge has capitalized on the soaring interest in eye-centric beauty treatments. Their focus on a niche yet popular segment allows them to stand out in the beauty salon market, delivering expertise that attracts customers seeking dedicated services for their eyelashes.
  • Radiant Waxing Catering to the need for hair removal services, Radiant Waxing has honed in on providing a comfortable and high-quality waxing experience. Tailored services that prioritize client care and using premium products set Radiant Waxing apart in the competitive landscape of hair removal specialists.

Each of these entities contributes uniquely to the tapestry of the beauty salon industry, illustrating the dynamism and complexity of the market. The diverse services and specialized expertise offered by these companies not only enrich the choices available to consumers but also encourage ongoing innovation and development within the beauty care sector.

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Summary and extracts

1 Market overview

1.1 Definition and presentation

A beauty salon is defined as a business that offers its clients aesthetic treatments and aesthetic massages without medical purposes.

Beauty salons are operators who perform aesthetic treatments including body care, facials, beauty treatments, waxing and other more specific treatments (UV tanning, pulsed light). They can be generalists or specialized in one treatment.

Salons compete with fitness and thalassotherapy institutes, SPAs and massage salons.

The U.S. beauty salon market growth between 2015 and 2020 was 1.2% per year. The market is highly fragmented, with a consumer base concentrated in the Northeast and Midwest. The beauty salon workforce numbered approximately 721,000 in 2018, of which approximately 75% were hairdressers.[datausa]

1.2 The global market

The global beauty salons and spas market was estimated at $***.** billion in ****. Due to the Covid-** outbreak and restrictive travel measures, industry revenue declined by *% in ****.

However, recovery is expected to take place as early as **** at a slower pace than forecasted prior to the Covid-** crisis. Indeed, on a global ...

1.3 The American market

The breakdown of the U.S. market revenue was as follows in ****.

Breakdown of beauty salon revenues in the United States United States, ****, in Source: ****

With total sales estimated at $** billion in ****, it is possible to estimate the beauty salon market at **.*% of this value, or $**.* billion in ****.[***]

2 Analysis of the demand

2.1 Specificities of the American demand

Popular treatments in the United States

The following graph shows the favorite beauty treatments among American women who receive more than three treatments per year. It is noticeable that hair-related treatments represent a significant portion of the demand.

Preferred treatments for women who receive more than three treatments per year United ...

2.2 Fears related to the health crisis

The health crisis has induced important changes in the demand for beauty care. Indeed, a part of the consumers is worried about the risks of transmission of Covid. The following graph shows that up to **% of respondents were reluctant to request facial care.

However, it is noted that **% of consumers do ...

2.3 Growth in demand for DIY beauty and self-care products

The Covid crisis in the United States has led to a surge in sales of do-it-yourself beauty products. If it is believed that these products can substitute some beauty salon treatments, this trend could pose a threat to the industry.

The following graph shows the progression of these sales from **** to ...

3 Market structure

3.1 Market structure

The following graph shows the distribution of establishments making up the beauty care sector in the United States. It can be seen that barber shops represent a minority of the total number of establishments.

US beauty care sector United States, ****, in units Source: ****

Both segments are highly fragmented. Indeed, the top ...

3.2 Hairdressers and cosmetologists in the United States

The Bureau of Labor offers statistics on hairstylists and cosmetologists in the United States. Their total number was estimated at ***,***, with ***,*** working in the personal care industry. While the top states in terms of total number of workers are Texas, California, Florida, New York and Pennsylvania, it is more interesting to ...

3.3 A growing online presence

Digital appointment booking

The health crisis has led to a growth in online beauty care bookings.

First of all, the following graph shows an increase in the share of businesses in the sector using automated technology to confirm their appointments since the beginning of the crisis. **% of establishments have taken advantage ...

4 Analysis of the offer

4.1 Services offered

In general, the services offered by beauty salons are distinguished between facials, body treatments, hair removal for women, hair removal for men and finally beauty. There are also institutes that specialize in hair removal or manicure

Beauty salons offer several services in each category, including the following

Facial care The average ...

4.2 Price overview

The price offered for the same service by the institutes varies considerably depending on the duration of the treatment, but also between institutes

In addition, the subscription system of the clients also makes the rates vary; they are higher (***) for the non-subscribing clients. Below is an overview of beauty salon prices ...

4.3 New offers linked to the health crisis

The health crisis gave rise to several innovations on the part of beauty institutes that were obliged to transform their offer.

Most of these innovations consisted of institutes sharing their skills online, in the form of tutorials or virtual classes. However, the emergence of gauges to limit the number of people ...

5 Regulation

5.1 US regulations

In the United States, cosmetics are regulated by the Food and Drug Administration (***).

As far as beauty salons are concerned, establishments must have the right license according to the state. In addition, all cosmetologists must have their cosmetology licenses. There are also specializations of these licenses for hair, skin or ...

6 Positioning of the actors

6.1 Segmentation

  • Procter & Gamble
  • L'Oréal Groupe
  • My Salon Suite
  • The Lash Lounge
  • Radiant Waxing

List of charts presented in this market study

  • Size of the global beauty salon and spa market
  • What care are you reluctant to receive in the current health context?
  • What security measure do you want salons to continue to implement?
  • American beauty care sector
  • Increase in sales of DIY beauty products
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Latest news

How L'Oréal's AI helps you look your best - 31/05/2024
  • - The "Beauty Genius" app: Scheduled to launch in the US in autumn, then in France.
  • - Using AI for beauty diagnostics
  • - Since acquiring ModiFace in 2018, L'Oréal has launched a skin diagnosis based on a selfie.
  • - Over 100 million uses of diagnostic tools in one year.
  • - Investment in technology and AI: 1 billion euros.
  • - Creation of the L'Oréal GPT for its 90,000 employees
Procter & Gamble: Optimism - 15/05/2024
  • - **Procter & Gamble worldwide sales for fiscal year 2022-2023**: $82 billion, up 2%.
  • - A quarter of French people use electric toothbrushes, compared with 45% of Germans and 60% of Scandinavians.
  • - Growth in the incontinence protection market: A niche that's growing by 5-10% a year.
  • - **Investment in France**: 65 million euros to modernize and expand production capacity at the Amiens and Blois sites, with a total of around 500 million euros over seven years.
Behind the glamour, L'Oréal's massive investments in its French factories - 01/05/2024
  • - 38 L'Oréal plants worldwide.
  • - 11 plants located in France, employing 3,000 of the country's 15,000 employees.
  • - 500 million euros invested by L'Oréal over the last five years in its French industrial base.
  • - French production accounts for 25% of L'Oréal's worldwide production volume, 80% of which is destined for export.
  • - The Caudry (Nord) plant is one of L'Oréal's largest, with 500 employees and 97% of production supplied to international markets.
  • - 7,000 new products launched each year by L'Oréal.
  • - Prada skincare products and Ralph Lauren fragrances manufactured in France since their integration into L'Oréal in 2019.
  • - 100% of L'Oréal group fragrances are made in France.
L'Oréal becomes number one in luxury cosmetics and dethrones Estée Lauder - 11/02/2024
  • 2023: the strongest year of sales growth in 20 years
  • L'Oréal, the world leader in this sector, becomes number one in the prestige skincare, make-up and fragrance segment, sold in department stores and perfumeries. It dethrones the American Estée Lauder(Estée Lauder, Clinique, La Mer, Jo Malone, Frédéric Malle, Tom Ford...).
  • sales of L'Oréal Luxe (Lancôme, Yves Saint Laurent, Biotherm, Armani, Kiehl's, Helena Rubinstein...) rose by 4.5% in 2023 to 14.92 billion).
  • L'Oréal has outperformed the luxury goods market for 13 years
  • Total group sales 41.2 billion euros in 2023 (+ 11%).
  • World leader in fragrances and skincare products.
  • Comeback ofHelena Rubinstein, thebrand founded in the United States in the early 20th century and owned by L'Oréal since 1984
  • In 2023, Helena Rubinstein exceeded one billion euros in sales.
  • Sales have increased 10-fold in ten years.
  • L'Oréal Luxe controls 32% of the prestige products market.
  • Perfumes: 20% growth.
  • Success of "La Vie est Belle", Valentino and Prada licensed fragrances (Paradoxe), Yves Saint Laurent's Libre, second best-selling fragrance for women in Europe.
  • Good start for MYSLF
  • The division dedicated to consumer products (L'Oréal Paris, Garnier, Maybelline...) has overtaken L'Oréal Luxe again

Another record year for L'Oréal - 09/02/2024
  • -Cosmetics market growth in 2023: 8.5
  • - Increase in L'Oréal sales in 2023: 7.6% (published), 11% (comparable data)
  • - L'Oréal sales in 2023: 41.18 billion euros
  • - Number of L'Oréal "billionaire" brands in 2023: 12
  • - Growth of L'Oréal's consumer division in 2023: 8.2
  • - L'Oréal consumer division sales in 2023: Over 15 billion euros
  • - L'Oréal Paris sales in 2023: 7 billion euros
  • - L'Oréal dermatological division sales in 2023: 6.4 billion euros
  • - L'Oréal dermatological division growth in 2023: 25.5
  • - Sales growth for L'Oréal's luxury division in 2023: 2% (organic)
  • - L'Oréal luxury division sales in 2023: 14.9 billion euros
  • - L'Oréal growth in Europe in 2023: 14% (published), including 9.2% in the year-end period
  • - L'Oréal growth in the United States in 2023: 10%.
L'Oréal and dermocosmetics - 12/05/2023
  • Worldwide sales of dermocosmetics products: €20 billion.
  • Share of dermocosmetics in the beauty market: over 8%.
  • L'Oréal Dermatological Beauty Division sales in 2022: 5 billion euros, with 22% year-on-year growth.
  • Sales growth for this L'Oréal division in the first quarter of 2023: 30%.
  • In France, dermocosmetics is present in specific distribution networks such as pharmacies, parapharmacies and selective distribution.
  • The Avène brand of the French Pierre Fabre group is expected to break the billion euro barrier for the first time this year.

Companies quoted in this study

This study contains a complete overview of the companies in the market, with the latest figures and news for each company. :

Procter & Gamble
L'Oréal Groupe
My Salon Suite
The Lash Lounge
Radiant Waxing

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