Salon Services Market By Service Type (Hair Care, Nail Care, and Skin Care), By End-user (Women and Men), By Age Group (Teenagers, Young Adults, Middle-Aged Customers, and Senior Citizens), By Region, By Competition Forecast & Opportunities 2024-2032F

Market Overview

The global Salon Services market reached a value of USD 228.67 billion in 2022 and is expected to exhibit strong growth with a Compound Annual Growth Rate (CAGR) of 7.96% through 2028. This market represents a dynamic and thriving industry encompassing a wide array of personal grooming and beauty services. From haircuts and hairstyling to skincare treatments and nail services, salons play a significant role in enhancing people's appearance and boosting their self-confidence. The market overview of salon services reveals a complex landscape influenced by evolving consumer preferences, technological advancements, and changing beauty trends.

The salon services market has experienced consistent growth over the years, driven by increasing disposable incomes, evolving beauty standards, and the growing desire for self-care and pampering. The market is poised to continue its upward trajectory due to factors such as urbanization, a rising middle class, and an aging population seeking anti-aging and wellness treatments. The market for salon services can be broadly categorized into several key segments, each catering to specific beauty and grooming needs, including hair care, nail care, and skin care services. Regional variations in the salon services market are influenced by cultural differences, economic conditions, and beauty preferences. Developed regions like North America and Europe have robust salon industries, driven by high disposable incomes and a strong emphasis on personal grooming. Emerging economies in Asia Pacific, Latin America, and the Middle East are experiencing rapid growth as rising incomes and changing lifestyles lead to increased spending on beauty and self-care.

Key Market Drivers

1. Economic Growth and Disposable IncomeEconomic growth serves as a primary driver of the salon services market. As economies expand, disposable incomes rise, resulting in higher consumer spending on discretionary services like beauty and grooming. Increased disposable income allows consumers to indulge in premium salon treatments and explore a broader range of services. This driver is particularly significant in emerging economies where the rising middle class seeks to elevate their lifestyles and invest in self-care.

2. Changing Beauty Standards and TrendsDynamic beauty standards and ever-evolving trends play a pivotal role in driving the demand for salon services. Consumers often seek to emulate the looks of their favorite celebrities, influencers, or fictional characters. The rise of social media platforms amplifies this trend, as individuals are exposed to a constant stream of images showcasing the latest beauty styles. Salons capitalize on these trends by offering services that cater to specific looks, ranging from hair color trends to nail art designs.

3. Urbanization and Lifestyle ChangesThe ongoing trend of urbanization is driving demand for salon services globally. As people migrate to urban areas for better employment opportunities and living standards, they are more likely to avail themselves of salon services due to increased exposure to fashion, trends, and social events. Urban dwellers also lead busy lives and often seek convenience, making salons a one-stop solution for their grooming needs.

4. Wellness and Self-Care EmphasisThe growing emphasis on wellness and self-care is a transformative driver in the salon services market. Beyond aesthetics, consumers are increasingly seeking holistic experiences that enhance their well-being and mental health. Salons are responding by offering not only beauty treatments but also relaxation therapies, spa services, and mindfulness practices like meditation and yoga. This shift is particularly resonant with millennial and Gen Z consumers who prioritize overall wellness.

5. Aging Population and Anti-Aging TreatmentsThe aging global population is driving the demand for anti-aging treatments and wellness-focused services. Consumers are seeking solutions that help them maintain a youthful appearance and boost their self-confidence. Salons that offer advanced skincare treatments, non-invasive anti-aging procedures, and customized beauty plans for older clients are positioned to capitalize on this demographic trend.

6. Men's Grooming and Gender NeutralityThe men's grooming segment has witnessed substantial growth in recent years. Changing perceptions of masculinity and a broader acceptance of grooming practices have driven demand for services like beard grooming, hairstyling, and skincare among men. Gender-neutral salons and services have also gained traction, catering to diverse identities and preferences.

Key Market Challenges

1. Intense CompetitionOne of the most significant challenges in the salon services market is the intense competition among salons and beauty service providers. With a plethora of options found at to consumers, from high-end salons to budget-friendly chains and even home-based beauty services, businesses must continually differentiate themselves to attract and retain clients. This competition often leads to price wars and pressure on profit margins. The proliferation of salons and beauty providers also means that businesses need to offer unique value propositions to stand out. This might involve specialized services, exceptional customer experiences, innovative treatments, or a strong brand identity that resonates with their target audience. Additionally, with the rise of online reviews and social media, positive customer feedback and online reputation management become critical for gaining a competitive edge.

2. Regulatory Compliance and Health StandardsSalon services involve close personal contact between service providers and clients, making health and safety a paramount concern. Meeting regulatory compliance standards and ensuring a hygienic environment can be challenging, particularly in the face of evolving health and sanitation guidelines, as seen with the COVID-19 pandemic. Salons must adhere to strict regulations regarding sanitation practices, disinfection of equipment, and the use of safe and approved beauty products. Maintaining compliance requires ongoing training for staff, investment in high-quality disinfection equipment, and staying up-to-date with local, national, and international health and safety regulations. Non-compliance can lead to legal issues, reputational damage, and loss of customer trust, making it imperative for salons to prioritize health and safety measures.

3. Evolving Consumer Preferences and TrendsThe beauty and grooming industry is highly trend-driven, and consumer preferences can change rapidly. Keeping up with these shifts can be challenging for salons, as what's in demand today may be passé tomorrow. Staying ahead of the curve requires salon owners to continuously monitor and anticipate trends in hair, makeup, skincare, and overall wellness. Consumer preferences are also influenced by factors like sustainability, natural and organic products, and personalized experiences. Salons must be agile and adaptable to incorporate these preferences into their offerings. Failure to align with evolving consumer expectations can lead to declining customer loyalty and decreased business viability.

4. Technological DisruptionIn anera of rapid technological advancement, the salon services market is not immune to disruption. Technology has transformed how businesses interact with clients, manage operations, and market their services. While technology offers numerous opportunities for efficiency and growth, it can also pose challenges for traditional salon models. Online booking systems, mobile apps, and digital marketing platforms have become essential tools for engaging with customers and streamlining operations. Salons that fail to adopt these technologies may find themselves falling behind competitors who offer convenient online booking options and personalized digital experiences. Moreover, virtual consultations, augmented reality tools, and online reviews have shifted how clients choose and interact with salons, demanding a strong online presence and positive digital reputation.

Key Market Trends

1. Personalization and CustomizationThe era of one-size-fits-all beauty treatments is giving way to personalized and customized services. Consumers are looking for treatments tailored to their unique preferences, skin types, and hair textures. This trend is driving salons to offer personalized consultations that consider individual needs, leading to customized haircuts, color formulations, skincare routines, and more. Technology, such as AI-powered skin analysis and virtual makeover tools, is also being leveraged to create personalized recommendations that resonate with clients on a deeper level.

2. Sustainability and Eco-Friendly PracticesAs environmental consciousness grows, sustainability is becoming a significant trend in the salon services market. Both consumers and salon owners are increasingly concerned about the environmental impact of beauty products and practices. Salons are adopting eco-friendly initiatives by using organic and natural products, reducing water consumption, minimizing waste, and adopting energy-efficient practices. Green salons are not only meeting the demands of eco-conscious consumers but also demonstrating their commitment to ethical business practices.

3. Virtual Consultations and Digital ExperiencesThe integration of technology is transforming the salon experience, even before clients set foot in a physical establishment. Virtual consultations are becoming more common, allowing clients to discuss their needs, preferences, and expectations with salon professionals remotely. This trend not only enhances convenience but also helps clients make informed decisions about the services they want. Additionally, the use of augmented reality (AR) technology enables clients to visualize potential outcomes of haircuts, hair colors, and other treatments before committing, leading to increased satisfaction and confidence in their choices.

4. Subscription Models and MembershipsSubscription models and memberships are gaining traction in the salon industry. Clients are opting for packages that offer regular services at discounted rates or with added perks. This trend fosters customer loyalty and provides a predictable revenue stream for salons. Membership models often come with exclusive access to events, discounts, and specialized treatments, enhancing the overall client experience and fostering long-term relationships.

5. Digital Marketing and Influencer CollaborationsSocial media platforms are playing a pivotal role in driving trends within the salon services market. Salons are leveraging digital marketing strategies to showcase their work, share client testimonials, and connect with potential clients. Collaborations with beauty influencers and online content creators are becoming commonplace, with influencers reviewing treatments, showcasing transformations, and providing authentic endorsements. These collaborations amplify the reach of salons, attracting a broader and more engaged audience.

The global salon services market is undergoing a transformation driven by a diverse range of trends that cater to evolving consumer preferences, technology integration, and societal shifts. Holistic wellness, personalization, sustainability, virtual consultations, inclusivity, and hybrid spaces are just a few of the trends reshaping the industry. Staying attuned to these trends and adapting business strategies accordingly is crucial for salons to remain competitive and meet the dynamic demands of their clientele.

Globally, hair salons are incorporating more perfumed and environmentally friendly hair shampoos and massaging oils to enhance the clientele's experience. For instance, the American hair salon Sport Clips offers neck and shoulder massages, haircuts, and other services while using warmed towels, massaging shampoos, and specially blended proprietary scents. Over the anticipated timeframe, the growing necessity for salons to improve their service offerings will favorably impact market growth. To stay ahead of the competition, major businesses in the sector offer a wide range of services.

Segmental Insights

Service Type InsightsOver the projection period, the market is divided into three categories based on service typeskin, nail, and hair care. The demand for natural and organic hair care products is rising, consumer spending on hair cutting and styling services is rising, and the number of barber and hairstyling shops within the hair salon services sector are all contributing to the hair care segment's dominance of the global market. The increasing consumer preference for specialized skincare salon treatments like facials and anti-aging & exfoliating massages will support the skin care segment's significant growth during the projection period. Nearly 92% of American adults believe that massage treatment significantly lessens body pain, according to the "AMTA 2021 Massage Profession Research Report," which was published by the American Massage treatment Association (AMTA) in 2021. This statistics information demonstrates the rising demand for skin care services among salons in the United States. The need for skincare treatments is further increased by professional beauty salons offering discounted skincare services.

End User InsightsBased on end user, the market is segmented into women and men. In 2022, the largest market share belongs to the women's market, which is supported by the increasing availability of feminine goods and services in salons all over the world. In addition, women often pay more for services than men do. The male market is expanding as a result of the rising demand for services including body waxing, eyebrow threading, and beard shaping. Men's growing awareness of personal grooming and cleanliness is accelerating the demand for a variety of services. Men experiment with different treatments internationally despite the overwhelming number of salons catering to the women's market due to rising customer awareness of hair and skin care trends.

Regional InsightsOver the projection period, 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 2021. Many 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 was 1.7 million. North America emerged as the second most prominent market in 2022. Led by the U.S., the rising popularity of facial, massage & nail treatment-related services encourage international players to penetrate the North America market. 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 2021. 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.

Recent Developments

• In 2022 - Reliance Retail, an Indian retailer,announced its plans to enter the salon business by acquiring Natural Salon& Spa, which operates over 650 salons in India. Through this acquisition,the Reliance brand will compete with major players such as HUL, a prominentplayer in the salon category.
• In 2022 - Salon Azure, a Tennessee, U.S.-basedbrand, opened its first outlet in Guwahati, India, in 2022. The salon provideshaircuts, coloring & styling, waxing & tanning, and a wide range offacial and skin care treatments and nail treatments.
• In 2022 - Sola Salons, a U.S.-based salon studiofranchise, announced the signing of four franchise agreements across Canada,including Toronto, Durham, Kitchener, Markham, Richmond Hill, and Hamilton. Thefranchise announced that these new agreements would establish nine locationsacross Canada in the near future.
• In 2022 - Duo Carrie and Lauren Dunne, U.S.-basednail varnishing services experts, reopened their Vanish Lane brand’s waterlessnail salon in Washington DC, U.S. The strategic initiative (nail salon launch)highlights the company’s intent to provide toxin-free products in its salon.
• In 2022 - Hotel Sahara Star, a Mumbai, India-basedhotel business, announced the launch of Jean- Claude Biguine Salon & Spa, aFrench beauty house in Mumbai. The salon offers hair, skin, nail, and beautyservices.

Key Market Players

• Great Clips, Inc.
• RegisCorporation
• DessangeInternational
• UltaBeauty, Inc.
• TheLounge Hair Salon
• SevaBeauty
• Drybar
• Skin Rich
• TheLeading Salons of the World, LLC.
• Snip-its