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Dallas–February 20, 2013—Total revenues for all salon industry services (hair, skin, nails) plus salon retail, grew at a robust 4.1% to $75.38 billion, per the new 2012 Professional Salon Industry Haircare Study from Professional Consultants & Resources, the leading salon industry strategic consultants and data source. The total U.S. salon haircare market segment (services plus retail) registered $63.33 billion and grew at about 3.3%. There are a total of nearly 288,300 salons and barbershops in the United States.

“The State of our Industry is strong,” says Cyrus Bulsara, president. “Good economic recovery, better credit and greater disposable incomes, led to increased visits and better frequencies for salon services, leading to better product sales to salons and clients. Pockets of bad economy persist, but are outweighed by areas with a strong economy. Haircolor, BKT straightening, and basic cutting and styling services are major growth-drivers, primarily at chair/suite rentals, family-economy chains and upscale men’s barbershop chains. New Dry-bars and Blow Bars now add to service volumes. Nail care rose a robust 20.75%.”

Major highlights of study, current style trends and high-growth areas indicate robust salon industry growth in future:

  • Major New Sections: New! Men’s salon services by type and men’s product category analysis, due to huge growth in men’s sector.
  • Industry Alert: New! Services analysis shows huge move, away from the old Independent salon and mid-tier chains model towards family-economy chains and chair/suite rentals. Manufacturers, chains, and other industry sectors ignore this shift at their own peril.
  • Two major U.S. distributors, Beauty Systems Group (BSG) and SalonCentric, dominate the market and participated in 5.8% growth.
  • Sally’s sales were up 9.2% and BSG sales were up 5.4%. SalonCentric sales also increased at about 2.1%. So, industry is growing.
  • C and D class chair/suite rental salons and consumers drove sales at Sally open-line stores. High-end independent salons, and A and B class chair/suite rentals, drove full-service sales at BSG/Cosmoprof, SalonCentric stores and other distributor stores.
  • Clients want personalized, private services and are moving away from the big, older mid-tier and mall-based chains like Regis.
  • Regis has seen 2 years of declines, at most of its salons and is currently under a major top-down reorganization and realignment.
  • Great Clips, Sport Clips, the family-economy chains plus new men’s barbershop chains, like Boardroom, Roosters and Floyd’s grow.
  • Home hairstyling continues to grow. New technology genres and premium styling tools contribute to a robust 7.2% growth.
  • Sales of Specialty Products grew at a robust 9.7%. Styling Products grew 5.3%. Shampoos and conditioners are in a low single-digit growth mode, mainly in back-bar use, after haircolor and BKT services, plus retail color protection products.
  • Oils like Moroccan, Argan, Macadamia, and Mythic which is a mix, grow rapidly due to shorter, sleek, straight hair style trends.
  • Mega salon store Ulta saw massive sales growth all year at 20%. Ulta’s 2012 holiday sales exploded with unique special offers.
  • Direct sales channel, with Aveda, Bumble, Kerastase, Wella in low-growth, got a huge boost from TIGI’s move to direct selling.
  • Redken and John Paul Mitchell Systems are only major companies growing at low single digits. Wella Intl., Farouk and TIGI also saw low single-digit growth. Some market leaders had marketing issues and had flat to declining growth. Sexy Hair grew +15%!

Updated 2012 study sections reveal shipment market share data for all top companies, with L’Oréal, P&G Prof. Care and Paul Mitchell respectively, ranked as the top three manufacturers. Zotos, including Joico, Estee Lauder, Colomer and KAO (Goldwell/KMS California) followed.

The study also features NEW sections, with an analysis of barbershops by state and % of the United States; upcoming Ingredient issues; leading manufacturers’ reps; plus other company sales, including AG Hair, Alterna, Brazilian Blowout, Cadiveau, Coppolla, Davines, Framesi, GK Hair, Kenra, Keratin Complex, Keune, Marcia Teixeira, Phyto, Pravana and more.

For purchasing information/questions on the 2012 Professional Salon Industry Haircare Study, contact Cyrus Bulsara, president, Professional Consultants & Resources, at cbulsara@augustmail.com or visit www.ProConsultants.us

Categories: Salon Haircare Study

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