salon industry grows 6% in 2011 with salon haircare growing

Total revenues for all salon industry services (hair, skin, nails) plus salon retail, grew at a robust 4.2% in 2011 to $72.41 billion, according to the new 2011 Professional Salon Industry Haircare Study from Professional Consultants & Resources, the leading salon industry strategic consultants and data source. The total U.S. salon haircare market segment (services and retail) measured $61.32 billion and grew at about 3.5%. There are nearly 280,000 salons and barbershops in total, in the United States.

"The state of our industry is strong," says Cyrus Bulsara, president. "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. Haircolor, straightening/smoothing and basic cutting and styling services were all major growth-drivers, primarily at booth-rentals, family/economy chains and mens barbershop chains. Nail care rose a phenomenal 24.5%, the highest on record."

Major study highlights, current trends and robust growth sectors indicate strong future salon industry growth:

•Both major U.S. distributors—Beauty Systems Group (BSG) and SalonCentric—which dominate the market, lifted the industry 6%.
•Sally Beauty same-store sales were up 6.3% and same-store BSG sales were up 5.5%. SalonCentric sales also increased about 3.7%.
•Booth-rental salons and consumers drove sales at open-line Sally stores. High-end independent salons and booth-rentals propelled full-service sales at BSG/Cosmoprof and SalonCentric stores.
•Clients want personalized, private services and moved away from the big, older chain salons, like Regis.
•Regis has seen 14 quarters of declines at most of its salons and is currently under a major top-down reorganization.
•Great Clips, Sport Clips, the family-economy chains and new men’s barbershop chains, like Boardroom, Roosters and Floyds grew.
•Home hairstyling also continued to grow. New genres and types of styling tools saw nearly 8% growth.
•Manufacturer/brand sales of styling products grew at a robust 6%. Specialty products grew 5%. Shampoos and conditioners were in a low single-digit growth mode, primarily from back-bar use after haircolor/straightening/smoothing services, plus color protection products and oils for home use.
•Mega salon stores, like Ulta, Beauty Brands, etc., saw steady sales growth all year. Ulta’s 2011 holiday sales exploded.
•Direct sales began to plateau at Aveda and Bumble & bumble, and even declined at others, but Kerastase made significant gains.
•Redken and John Paul Mitchell Systems were the only major companies growing robustly. Matrix, Farouk Systems and TIGI saw mid-to-low single-digit growth, while some market leaders faded, due to distribution gaps and other issues. Sexy Hair boomed.

Updated 2011 study sections reveal shipment market share data for all top companies, with L’Oréal, P&G Prof. Care and Paul Mitchell respectively, ranked as the top three manufacturers. Zotos, including Joico, Estee Lauder, Colomer and KAO (Goldwell/KMS California) followed.

The study also features NEW sections, with an analysis of barbershops by state and % of the United States; upcoming Ingredient issues; leading manufacturers’ reps; plus other company sales, including AG Hair, Alterna, Brazilian Blowout, Cadiveau, Coppolla, Davines, Fekkai, Framesi, GK Hair, Kenra, Keratin Complex, Keune, Marcia Teixeira, Phyto, Pravana and more.