2015 Professional Salon Industry Haircare Study

Overall revenues for all salon industry services (hair, skin, nails) plus salon retail grew 3.2%, according to the new 2015 Professional Salon Industry Haircare Study from Professional Consultants & Resources, the leading salon industry strategic consultants and data source. Total U.S. salon services and salon retail sales grew by 3% to $60.27 billion. There were nearly 294,000 U.S. salons and barbershops using and selling salon haircare products. Salon count declined by 2.5%, as large rental suites opened. The study features illustrative graphs/charts to make data user-friendly.

“The state of the professional salon industry is strong, with an upward growth curve and changing dynamically,” says Cyrus Bulsara, president of Professional Consultants & Resources. “Major economic barriers affecting the salon industry are fading, as innovative new products, salon suites and new management at top manufacturers bring new vitality. Manufacturer sales of haircolor, shampoos, conditioners, hair sprays, hair styling products and specialty products all increased. We also saw a major paradigm shift toward large family economy chains and rentals. Most rentals still do not retail effectively. Therefore, product sales at mega-salon stores like ULTA increased.  Diversion continued to fulfill consumer demand for professional products.”

 Haircoloring remained the all-important anchor service at U.S. salons, attracting clients for other services like cuts, styles, straightening and others. Haircoloring services were up nearly 4%, due to an aging baby boomer population plus robust new demands for fashion haircolor, including blonding, highlights, baby-lights, balayage, ecaille, ombré/sombré, vibrants, vivids and pastels. Keratin straightening services grew at around 3.2%. Cutting and styling services grew at 2.6%, as the frequency of client visits to salons increased slightly.

 Major highlights of the study include:

• The men’s sector grew at nearly 1½ times the industry’s growth rate. The study analyzes men’s salon services and product lines in depth. 

 A major paradigm shift continued from independent salons and mid-tier mall chains toward family-economy chains and suite rentals, plus high-end men’s barbershops. All salon industry sectors should note this dynamic and market, sell and educate these new prime targets.  

  Sales at two major U.S. distributors grew, with CosmoProf’s sales up 4.2% and sales at L’Oréal’s SalonCentric up 4%.

•  Sally Beauty store sales were up 1%, due to economic headwinds, but disposable incomes eased as lower gas prices prevailed.

•  C and D-class rental salons and thrifty salon consumers shop at Sally stores. High-end independent salons and A and B class rentals drove full-service sales at CosmoProf/Armstrong McCall, SalonCentric/State/RDA/ProMart stores and independent distributor stores. 

• Leading chair/suite rental organizations like Sola, Salon Plaza, Salon Lofts, Solera, Phenix, Salons by TJ and Salon Concepts grew rapidly.

• Sales at Regis stabilized, as the company continued to study divesting high-end brands to concentrate on value brands and test rentals.

• Great Clips and Sport Clips both registered 9.8% and 17% growth, respectively. Both family-economy franchise companies are well run. 

•  Styling product sales increased by mid-single digits, as consumers continued home hairstyling, facilitated by new genres of styling tools.

• Sales of specialty products, including those for hair loss, shine, thermal protection, etc. grew rapidly thanks to new intros at 7%, led by sales of oils like argan, macadamia, marula, rose and diamond.  

• Sales of shampoos and conditioners primarily for use at backbar grew at low single-digits, as women shampooed less often and turned to dry shampoos. 

•  Salon retail product sales grew slightly, primarily due to dry shampoos, hair color protection products, new types of hair and scalp masks, cleansing and protein infusion products.

•  Sales at mega salon-store ULTA grew at about 20%, largely due to aggressive promotions on salon products and via special offers.  

•  Direct sales at Wella, Aveda, Kerastase and Bumble + bumble grew. Wella had the strongest growth, due to new brands/education.  

• Redken and John Paul Mitchell Systems were the only two major companies with high single digit growth. It was fueled by new launches. 

 •  Market shares are detailed for every company, with L’Oréal Professional, P&G Professionals and John Paul Mitchell Systems, respectively, ranked as the top three manufacturers. Shiseido (Joico and Zotos), Estée Lauder (Aveda and Bumble + bumble), Revlon Professional (American Crew, Abba, Roux, multicultural division etc.), Unilever (TIGI) and KAO (Goldwell/KMS California) followed. Sexy Hair, Luxury Brand Partners, Pravana and Keune Haircosmetics USA achieved double-digit growth. Sales at TIGI and Farouk Systems increased. Luxury Brand Partners and Kevin Murphy are two new high-growth players.

NEW sections detail cut, color and style projections; data analysis of barbershops and men’s services/products; ingredient issues; leading manufacturers’ reps; plus sales figures for AG Hair, Aloxxi, Alterna, Bio Ionic, Brazilian Blowout, Cadiveau, Peter Coppolla Beauty, Davines, Framesi, GK Hair, Kenra Professional, Keratin Complex, Keune, Marcia Teixeira, Phyto, Pravana and more.