Salon Industry Growth - 2011

Cosmetology News: 2011 Salon Industry Posts Robust Growth

2011 may have been a problem or a struggling year for some industry, but not the beauty/cosmetology sector. The beauty industry has been reported to have had a revenue growth of more than $70 billion in the said year.

Despite improving economic conditions, 2011 still proved to be a hairy escape from the red for a number of industries, including housing and construction. The year, however, turned out to be a good one for the hair-skin-and-nails sector—as well as certainly for all the salon professionals with a cosmetology license or cosmetology CE (continuing education) credits.

According to the Professional Salon Industry Haircare Study from Professional Consultants & Resources (PCR), as reported by modernsalon.com, salon industry services (hair, skin, nails) plus salon retail posted a total revenue growth of $72.41 billion in 2011, a healthy bump of 4.2 percent over 2010. The total U.S. salon hair-care market segment (services and retail), making up 280,000 salons and barbershops, reported $61.32 billion, growing nearly 3.5 percent.

“The state of our industry is strong,” declared Cyrus Bulsara, president of PCR, in the article for modernsalon.com. “Economic recovery, looser credit and higher disposable incomes all combined to increase salon visits and frequencies for services, which resulted in better product sales to salons and clients. Hair color, straightening/smoothing and basic cutting and styling services were all major growth drivers, primarily at booth rentals, family/economy chains and men's barbershop chains. Nail care rose a phenomenal 24.5 percent, the highest on record.”

The other major findings of the study all point to a strong salon industry growth in the coming years:

•    Mega salon stores, such as Ulta and Beauty Brands, recorded steady sales growth all through 2011. Ulta’s 2011 holiday sales took off.
•    Home hairstyling grew, following the trend in past years. New genres and types of styling tools experienced 8-percent growth.
•    Cutting and styling, hair color and straightening/smoothing services were all up: between 3 percent to 4.5 percent.
•    Manufacturer/brand sales of styling products rose by 6 percent. Specialty products climbed 5 percent.
•    High-end, artistic, independent salons and better booth rentals saw higher salon visits and frequencies in 2011.