Los Angeles, CA (PRWEB) December 24, 2012
With industry operators giving their best efforts to offer services in line with changing consumer sentiment, the Hair and Nail Salons industry held steady against the recession. Over the five years to 2012, IBISWorld estimates that revenue has increased at an average annual rate of 2.0% to an estimated $ 46.4 billion. In addition to standard haircuts, many salons offer facials, hair modification treatments like perms and straightening, massages and deluxe manicures and pedicures. According to IBISWorld industry analyst Caitlin Moldvay, with persistent and widespread unemployment during the period, consumers were less willing to spend on these high-value discretionary services, opting for basic haircut services. Consumers also decreased their number of salon visits, stretching out the time between appointments. These changes in purchasing patterns caused revenue to dip slightly during the recession. However, declining unemployment and a slew of new products and services in more recent years have favorably impacted industry revenue, causing demand for hair and nail salon services to rebound modestly and grow by an estimated 2.8% in 2012.
The Hair and Nail Salons industry is highly fragmented, dominated by nonemployers or small businesses spread across many locations to be close to key consumer markets in high-traffic locations. Over the past five years, companies have continued to enter the industry, attracted by its stable consumer base and low barriers to entry. For example, an industry operator can simply be a hair stylist or nail technician that rents a booth from a hair or nail salon. As such, enterprise growth has remained strong, despite a drop in consumer sentiment and slowdown in spending, says Moldvay.
Economic conditions are anticipated to improve over the five years to 2017, with industry revenue forecast to increase at an average annual rate of 3.6% to $ 55.4 billion. Declining unemployment during the period is expected to drive per capita disposable income growth. Equipped with larger budgets, consumers will likely favor professional salon products and services over the cheaper alternatives sold at drugstores. Meanwhile, environmental concerns are expected to become more prevalent over the next five years, which will lead salons to offer a wider array of eco-friendly products that appeal to emerging consumer preferences. For more information, visit IBISWorlds Hair & Nail Salons in the US industry report page.
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IBISWorld industry Report Key Topics
This industry comprises salons that primarily offer hair care and nail care services. In addition to retailing beauty products, these companies may also provide facials and makeup applications. This industry does not include companies that primarily offer training in barbering or hairstyling, nor does it include electrolysis, permanent makeup or tanning services.
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About IBISWorld Inc.
Recognized as the nations most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
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