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The global salon services market size was valued at USD 201.92 billion in 2021. The market is projected to grow from USD 215.65 billion in 2022 to USD 355.45 billion by 2029, exhibiting a CAGR of 7.4% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with salon services experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our industry analysis, the global market exhibited a decline of 21.25% in 2020 as compared to 2019.
Salon services encompass all those practices performed in a salon, ranging from shaping, polishing, and cutting the nails to eyebrow threading, skin treatment, and hair cutting. Growing consumer awareness regarding the availability of personal care services, such as massages, facials, hairdressing, and nail enhancing & nail art, beyond the traditional barber hair-cutting services, favor market growth. Hairdressing parlors worldwide are increasingly utilizing sustainable and scented hair shampoos & massaging oils to enhance the consumer experience. For instance, Sport Clips, a U.S.-based hair salon, use steamed towels, massaging shampoos, and custom-blended proprietary scents while offering neck & shoulder treatments and hair-cutting services. The rising need for salons to innovate their service offerings will positively influence market growth over the forecast timeframe. Prominent players in the industry include a broad portfolio of services to stay ahead of the competition.
Closure of Barber Shops & Salons amid COVID-19 Pandemic to Impede Market Growth
The closure of barber shops and hairdressing salons worldwide due to the COVID-19 lockdown restrictions has impacted revenues globally, most notably in 2020 and 2021. Governments across countries also encouraged individuals to refrain from visiting salons and follow social distancing norms to reduce their risk of coronavirus infection. From a service standpoint, issues concerning staff availability across salons challenged numerous industry participants amid the peak COVID-19 crisis. These factors are hampering the global salon services market share despite the industry’s recovery in 2022.
According to the data published by the National Hair & Beauty Federation (NHBF), a U.K.-based trade association representing barbering, hairdressing, and beauty salon owners, in 2020,
Easing lockdown restrictions across countries, which tends to reduce COVID-19 infections and deaths, have led to the reopening of barber shops and hair and nail salons, thereby uplifting salon businesses worldwide. Numerous players operating in the beauty salon services industry emphasize maintaining the environment sanitized and infection-free to build greater customer confidence. Such efforts will likely trigger the demand for beauty care products and services in the foreseeable future.
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The emergence of Social & Mobile Salons to Create Lucrative Business Opportunities
The increasing need for industry players to create a steady inflow of customers is revolutionizing the global beauty salon market with the advent of social & mobile salons. A mobile salon refers to an establishment where beauty care services are provided near or at the customer’s location. This setup can be designed to offer services provided at a brick-and-mortar salon. Mobile salons can operate in a vehicle, typically a van or a trailer, rendering services at a client’s desired location. These salons can also involve service providers visiting the customer’s house/location and rendering services without using a modified vehicle. On the other hand, social salons refer to novel establishments that transform into a place of social and recreational activity. Given their purpose, social salons are usually designed to be aesthetically appealing.
Rising Number of Barber Shops & Beauty Parlors to Favor Market Expansion
The rising number of barber shops, beauty parlors, and manicurist clinics worldwide to get that perfect haircut or style will likely spur the market in the coming years. In addition, the growing expansion of hospitality establishments offering premium-quality services will favor industry expansion, given the rising number of international tourist arrivals across countries. For instance, in July 2022, the Indian Hotel Company Ltd. (IHCL), a salon management services company, opened its two new unisex salons under the NIU&NAU brand in Bangalore (Karnataka, India). Establishing new salons highlights the increasing consumer demand for services worldwide. Furthermore, increasing preferences toward eco-friendly cosmetics and sustainably made & vegan cosmetic items will increase industry revenues in the near term.
Increasing Popularity of Online Appointment Booking Platforms to Strengthen Salon Businesses
Online appointment booking platforms are facilitating businesses to attract more consumers to their salons. Shedul, Rosy, and MINDBODY are the leading platforms worldwide specializing in online salon appointment bookings. Such digital tools also help salons track customer service preferences to personalize salon treatments. Given the advantages of online salon appointment booking tools, their utilization among salon establishments will likely gain momentum throughout the forecast period. According to industry experts, as of 2019, nearly 40,000 businesses and 150,000 hair stylists used Shedul, a popular salon management platform for managing their operations regularly. From an online marketing standpoint, advertising salon services on social media sites and applications will boost the global salon services market growth.
Intense Competition from Unorganized Players to Impede Market Growth
Industry players face intense competition from numerous unorganized barber shops & salons offering sub-standard services at relatively low costs, especially in Asian countries such as China and India. In addition, the intensely competitive landscape demands prospective beauty salon & hair care services market players to invest heavily in maintaining a stylish & visually appealing salon by buying salon equipment & products such as chairs, hair straighteners, and cutting equipment. This factor can be challenging for salons with budget constraints.
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Significant Consumer Spending on Hair Cutting & Dressing to Fuel Demand for Hair Care Services
Based on service type, the market is segmented into hair care, nail care, and skin care. The hair care segment dominates the global market due to various factors such as increasing demand for natural and organic hair care products, increasing consumer spending on hair cutting & dressing services, and the growing number of barber & hairdressing shops within the hair salon industry.
According to the data published by Hair and Beauty Industry Confederation Ireland (HABIC), in 2019, expenditure on hairdressing-related products and services in Ireland reached USD 1,201.09 million, a 3.6% rise compared to the previous year. This statistical data mirrors global trends in the hair care services space.
The skin care segment is expected to grow at a considerable rate during the forecast period (2022-2029), backed by the increasing consumer inclination toward specialized skincare salon treatments such as facials and anti-aging & exfoliating massages. According to the ‘AMTA 2021, Massage Profession Research Report,’ published by the American Massage Therapy Association (AMTA), in 2021, nearly 92% of American adults believe that massage therapy is effective in reducing body pain. This statistical data highlights the increasing popularity of skin care services across salons in the U.S. Discounted skincare services provided by professional beauty salons further surge the demand for skincare services.
The growing consumer awareness regarding the availability of manicures, pedicures, nail art & extension, and nail enameling services surges the demand for nail care services worldwide. In addition, the rising number of manicurists and nail care specialists contributes significantly to nail care services revenues. According to the U.S. Bureau of Labor Statistics (BLS) data, as of May 2021, there were 120,540 manicurists and pedicurists in the U.S., a 2.1% increase compared to the previous year.
Rising Prevalence of Feminine Connotations in Salon Services to Favor the Women Segment
By end-user, the market is segmented into women and men. The women segment holds the most significant market share, backed by the rising prevalence of feminine in products and services offered across salons worldwide. Furthermore, services targeted at women are typically more expensive than men. According to a statement (May 2021), women's hair drying, washing, and cutting services cost approximately USD 40.33 (EUR 39.50) to USD 48.50 (EUR 47.50), whereas men's hair drying cut costs around USD 21.44 (EUR 21.00) in Germany.
The growing popularity of beard shaping, eyebrow threading, and body waxing services drives the growth of the men segment. Increasing awareness regarding personal grooming and hygiene among men further accelerates the demand for various services. Despite the overwhelming number of salons focusing on the women's category, increasing consumer knowledge of hair care and skin care trends is driving men to experiment with various services across countries.
Europe Salon Services Market Size, 2021 (USD Billion)
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The global market is segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.
The Europe market size was valued at USD 63.61 billion in 2021. Europe will likely dominate the market globally throughout the forecast period, given the rising consumer spending on beauty products & services. According to the Global Wellness Institute Organization (GWI), Europeans spent USD 273.6 billion on personal care products & services in 2020. A sizable number of young hairdressers and beauticians characterize salons across Europe, offering novel services. According to the European Union (EU), a European political and economic union, in 2019, the number of employed hairdressers and beauticians aged 15 years and above reached 1.7 million.
North America emerged as the second most prominent market in 2021. Led by the U.S., the rising popularity of facial, massage & nail treatment-related services encourage international players to penetrate North American markets. According to the data published by the American Massage Therapy Association (AMTA), a U.S.-based nonprofit association of massage therapists, nearly 25% of men and 21% of women in the U.S. got a massage service from salons in 2020. At a macro level, shifting beauticians' focus toward using premium-based and vegan cosmetic items while offering beauty treatment solutions in the United States and Canada will further create attractive business opportunities for prospective industry participants to exploit.
The Asia Pacific region is expected to witness significant growth in the coming years due to the rising number of hair and nail salons and beauty parlors in India and China. Recent years have witnessed significant competitive developments across Asian markets. For instance, in March 2022, Nykaa, an Indian beauty products retailer, partnered with Estee Lauder Companies, Inc., a U.S.-based multinational cosmetics manufacturer, to open a premier unisex hair care salon in India.
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Brazil emerged as the most prominent South American market and is characterized by increasing digitization. Digital solutions in the market assist in streamlining the salon management and backend operations. For instance, in April 2022, Orado, a Columbian startup aiming to digitize beauty salons in Brazil and other South American countries, invested USD 5.0 million to increase its portfolio of salon management software in the region. The growth of the Middle East & African markets is driven by increasing consumer preference for premium services, especially in the UAE and Saudi Arabia.
Players Focus on Geographical Expansion to Stay Competitive
Internationally reputed beauty parlors and barber shops emphasize increasing their geographical footprint to increase their service revenues. In addition, numerous industry participants employ management software to offer an enhanced salon experience to their clients. For instance, in June 2020, Regis Corporation, a U.S.-based hair salon chain, partnered with Zenoti, a U.S.-based salon management software provider, to utilize the partner’s solo salon technology platform in its salon businesses. Such efforts help industry players to stay competitive.
An Infographic Representation of Salon Service Market
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The market research report analyzes the market in-depth and highlights crucial aspects such as prominent companies, sectors, and sales channel areas. Besides this, the report related to the industry includes insights and details into the market trends and highlights significant industry developments and the overall market outlook. In addition to the insights mentioned earlier, the project report poses several factors contributing to the market's growth in recent years.
Value (USD Billion)
By Service Type
Fortune Business Insights says that the market size was USD 201.92 billion in 2021 and is anticipated to reach USD 355.45 billion by 2029.
In 2021, the market value stood at USD 201.92 billion.
Registering a CAGR of 7.4%, the market will exhibit strong growth during the forecast period (2022-2029).
By service type, the hair care segment dominated the global market in 2021.
The rising number of barber shops & parlors is the key factor driving the market growth.
Regis Corporation, Great Clips, Inc., and Dessange International are the leading companies worldwide.
Europe dominated the global market in 2021.
The emergence of mobile & social salons is a prominent industry trend.
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