General Beauty, Nails, and Spa Industry

The spa industry encompasses businesses that offer a wide range of relaxation and wellness services, mostly massages, facials, and body treatments. The spa industry is distinct from the beauty salon industry in that while these two types of service businesses may often be located at the same operation, spas are more gender neutral and offer services that are less aesthetic but wellness oriented. While spas do offer massages as one of their primary services, they are different from massage centers in that they offer a wider range of services. Furthermore, there is great diversity in the types of companies that offer spa services, examples including day spas, hotel spas, and resorts. The market is highly fragmented with no major businesses occupying more than 5% of the market share.

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.