This is free marketing research on the Beauty Salon industry and can include information on the background, market structure, definitions, competitors, trends and developments of beauty salons and is related to other topics such as health, hair, cosmetics and spa.

Table of Contents

Background

Beauty salons are personal services businesses which provide cosmetic or other treatments for men and women. A beauty salon, often different from a hair salon, focuses generally on face and body treatments, primarily for women, although the men's market is slowly increasing. Almost 50% of beauty salon workers are self-employed. Most outlets are small stores. A significant percentage of workers work out of their homes or rent space from salons. Employee turnover in the industry can be as high as 40%.

Market Structure

Beauty salons average 5 stations, with 3 full-time and 2 part-time workers.

The industry has seen steady growth since 2000:

• Salons average about 150 weekly visits
• Since 2000, the # of salon workers rose 26%
• Since 2000, the total # of salons is up about 6%

Almost 600,000 positions were filled in 2002 with experienced workers comprising 75% of new employment hires and those with less than one year’s experience comprising 25% of new hires.

Industry statistics:

• 20% of salons are hair salons
• 60% of salons are full-service
• 5% of salons are nail salons (13% of industry workers are manicurists)
• 5% of salons are barber shops
• Average income is close to the U.S. family income average - about US $40,000

Worker segmentation:

• 60% of workers are full time
• 30% of workers are part time (< 40 hour workweek)
• 10% are occassional workers (cleaning, etc.)

Market Metrics

The beauty industry revenues worldwide in 2004 were US $230 billion and US $46 billion in the United States alone.

Largest gloabl beauty care markets in 2004: 

United States           $46B
Japan                   $31B
France                  $15B
Germany                 $12B
UK                      $12B

Total beauty market in the U.S. is over $60 billion. The retail beauty salon market is a large segment of that but other segments are significant. U.S. sales of skin care products totaled $7 billion in 2005. Facial makeup in the U.S. in 2005 was $2.8 billion. Total facial care in the United States was almost US $6 billion. Eye, lip, and nail markets were $2.5 billion, $2 billion, and $500 million in the same period.

Global sales of skin care products totaled $50 billion in 2005. Facial makeup globally in the same period was $12 billion. Total facial care in the United States was almost US $6 billion. Eye, lip, and nail markets were $8 billion, $9 billion, and $3 billion in the same period.

Industry Players

Major Manufacturers and Suppliers		Location          Revenue       Market Cap	

1. Neutrogena Corporation 1                     US		$57.14B        $182B
2. Avon                                         US		$9.2B           $15B
3. Sally Beauty Holdings 2                      US		$2.48B         $1.5B
4. Revlon                                       US		$1.36B         $577M
5. Elizabeth Arden                              US		$1.13B         $691M

1 Owned by Johnson and Johnson
2 Largest beauty supply store chain in the U.S.

Sources

U.S. Census

U.S. Department of Commerce

Company and industry websites