2011 Salon Industry Study Shows Growth
Total revenues for all salon industry services (hair, skin, nails) plus salon retail grew at a robust 4.2 percent in 2011 to $72.41 billion, according to the new 2011 Professional Salon Industry Haircare Study from Professional Consultants & Resources, a leading salon industry strategic consulting and data source. The total U.S. salon hair care market segment (services and retail), consisting of nearly 280,000 salons and barbershops measured $61.32 billion and grew at about 3.5 percent.
“The state of our industry is strong,” says Cyrus Bulsara, president. “Economic recovery, looser credit and higher disposable incomes all combined to increase salon visits and frequencies for services, which resulted in better product sales to salons and clients. Haircolor, straightening/smoothing and basic cutting and styling services were all major growth-drivers, primarily at booth-rentals, family/economy chains and men's barbershop chains. Nail care rose a phenomenal 24.5%, the highest on record.”
Major study highlights, current trends and robust growth sectors indicate strong future salon industry growth:
• High-end, artistic, independent salons and better booth-rentals saw both increased salon visits and frequencies in 2011.
• Major new color and style trends, including the mop, pixie, bob and other short, straight, sleek, shiny hairstyles, created good growth in cut n’ color and styling service revenues. Mid-to-shoulder length “glam” styles were also popular and required restructuring, coloring and styling services.
• Cutting and styling, hair color and straightening/smoothing services were all up between 3% to 4.5%.
• Blow-dry/styling bars were the new sensation in major metros with a busy night scene and in many parts of the country.
• Clients want personalized, private services and moved away from some of the older chain salons to booth-rental salons.
• Booth-rental salons and consumers drove sales at open-line Sally stores.
• Both major U.S. distributors—Beauty Systems Group (BSG) and SalonCentric, which dominate the market, lifted the industry 6 percent.
• High end independents and better booth-rentals drove sales at BSG/Cosmoprof, SalonCentric and Independent distributor stores.
• Family-economy chains including Great Clips and Sport Clips, recorded good growth, along with men’s barbershop chains, like Boardroom, Floyds, Roosters and Knockouts. Men are increasingly going to salons for stylish cuts, color and even highlights.
• Home hairstyling also continued to grow. New genres and types of styling tools saw nearly 8 pecent growth.
• Manufacturer/brand sales of styling products grew at a robust 6 percent. Specialty products grew 5 percent. Shampoos and conditioners were in a low single-digit growth mode, primarily from back-bar use after hair color/straightening/smoothing services, plus color protection products and oils for home use.
• Mega salon stores, like Ulta, Beauty Brands, etc., saw steady sales growth all year. Ulta’s 2011 holiday sales exploded.
• Direct sales began to plateau and even declined among several brands.
Updated 2011 study sections reveal shipment market share data for all top companies.
The study also features NEW sections, with an analysis of barber shops by state and percent of the United States; upcoming ingredient issues; leading manufacturers’ reps plus other product company sales.
For purchasing information/questions on the 2011 Professional Salon Industry Haircare Study, contact Cyrus Bulsara, president, Professional Consultants & Resources, at [email protected] or visit www.ProConsultants.us