Hair-Care Industry Information

The American hair-care industry is very competitive.

In spite of its highly fragmented nature, the U.S. hair-care industry produces approximately $19 billion in annual revenue. It is a competitive industry in which the 50 largest companies own just 15 percent of the market.

Numbers

There are approximately 70,000 hair-care facilities in the U.S.--65,000 beauty salons and 5,000 barber shops. A large portion of the industry is comprised of small, independently owned salons. Large salons employ around 10 employees and bring in approximately $300,000 per year.

Competitiveness

Whether a hair-care salon is successful or not depends largely on marketing and technical ability. Large companies do not have much of an advantage over smaller ones, as the demand for hair care relies on population demographics and growth.

Products

The hair-care industry offers services that include hair coloring and cutting, skin care, nail care and the selling of products. Merchandising is an important part of a salon's business, as up to 15 percent of its revenue comes from the sale of hair-care products.

References

• Hoovers: Industry Overview: Hair Care Services