General Beauty Salon Industry

The beauty salon industry encompasses businesses and franchises that offer a wide range of cosmetic services, the most popular services including hair, nail, and makeup. More often than not, salons will primarily advertise one type of service, such as manicures and pedicures, but also offer other additional services such as hair removal. This variety of services that individual salons offer can help broaden their clientele and increase revenue. Generally, beauty salons are geared towards women and therefore exclude other appearance oriented service businesses like barbershops. Furthermore, while some salons do offer additional massage services, they are separate from spas or massage centers that only offer these types of services. This industry is highly dependent on special occasions, such as weddings and prom, and garners significant revenue from these types of events.

Beauty Industry Trends

As the COVID-19 pandemic shut down all nonessential businesses, businesses in the beauty and health industry were not left unscathed. As these nonessential businesses were allowed to resume business with reopening of the economy, stringent health guidelines regarding masks and social distancing limited the amount of customers that these businesses could serve, a blow to already razor thin margins. But before the pandemic, a growing economy and rise in discretionary spending allowed for this industry to expand magnificently, with more consumers opting to choose high-end, quality services for more money than try to save money on these types of luxury services. Furthermore, trends in “self-care” and the rising prominence of the health and wellness industry generated renewed interest in these types of services. As the pandemic subsides, the economy begins to recover, and household income levels continue to rise, the industry is expected to rebound.