FINALLY, THERE’S SOME SOLID EVIDENCE that the economy is recovering for the professional beauty industry. Professional Consultants & Resources, the leading strategic consultant and industry data source in the beauty industry, recently released its 2010 Professional Salon Industry Study, which reports overall salon industry growth at 4.5% and salon hair care growth at 4% in 2010.
“This is a meaningful recovery from the deep economic recession the United States has been experiencing,” says Cyrus Bulsara, president of Professional Consultants & Resources. Economic recovery and loosening credit also increased salon visit frequencies and resulted in good product sales. Hair color, Brazilian straightening and basic cutting and styling services were major growth-drivers, primarily at booth-rentals, family/economy chains and barbershops.”
Top-line highlights, trends and bright growth spots indicate strong future industry growth:
• Salon haircare service revenues experienced strong growth at 2.75%, mainly via family/economy chains.
• Hair color experienced its best growth in years at 3.2%, due to gray-coverage, fashion-color and increased use of home hair color. Booth rentals and high-end independent salons came out with bold new looks in Fall 2010.
•Specialty products grew at a phenomenal 9.3%, due to an aging population’s use of hair-loss prevention and volumizing products.
• Hair styling products grew 6.4%, as short, straight sleek looks continued in popularity at major metro salons and popular young, urban male styles consume large amounts of product.
• In comparison, shampoos and conditioners record low growth at 1.5% and 2.7% respectively.
• Ethnic products show a sharp decline of 9.6%, as the recession disproportionately impacts users.
• New Brazilian Keratin straightening and hair care products grew exponentially, despite controversy.
• Booth-rentals continued to grow in certain sectors of the United States as clients demand personalized, private services, moving away from the big, cookie cutter, chain salons.
• Great Clips and Sport Clips, both fast-growing economy chains, saw good revenue and franchise increases.
• Home hair styling continued to grow and new genres of electrics and styling tools grew 6.5%.
• Updated section of the study reveals shipment market share data for all top companies, with L’Oréal, P&G Salon Professional and JPMS ranked as the top three manufacturers. Zotos, Estée Lauder, Colomer and Goldwell follow.
• The study also features new sections with analysis of barbershops by state and percentage.
For purchasing information/questions on the 2010 Professional Salon Industry Haircare Study, contact Cyrus Bulsara, president, Professional Consultants & Resources at firstname.lastname@example.org or visit ProConsultants.com.