Hair Salon Industry: Market Size and Trends

This article was written by our expert who is surveying the industry and constantly updating the business plan for a hair salon.

Who wrote this content?

The Dojo Business Team

A team of financial experts, consultants, and writers

We're a team of finance experts, consultants, market analysts, and specialized writers dedicated to helping new entrepreneurs launch their businesses. We help you avoid costly mistakes by providing detailed business plans, accurate market studies, and reliable financial forecasts to maximize your chances of success from day one—especially in the hair salon market.

What is the global hair salon market size today, and how did it change in the last 5 years?

The hair-salon-only market is about $53.06B in 2025; broader beauty-salon scopes push totals well above $160B.

From 2020 to 2025, the industry recovered and grew at roughly 3.9%–7.7% CAGR depending on scope and region. Several studies separate “hair-only” from “full beauty,” which explains the wide range you see in headlines.

At the strict hair-only scope, some forecasts see a slower trajectory toward ~$61.8B by 2035 (~1.5% CAGR). Under broader salon scopes, growth has been stronger, helped by add-on skin/wellness services that raise basket size.

As you plan a hair salon, decide early whether you will stay hair-only or layer beauty/wellness—this choice directly drives your revenue ceiling.

We cover this exact topic in the hair salon business plan.

What is the expected annual growth rate for the next 5–10 years?

Expect moderate growth overall, with forecasts ranging ~1.5%–7.7% CAGR to 2030–2035 based on scope.

Hair-only segments skew to the low end due to market maturity in developed countries. Mixed-service salons (hair + beauty/wellness) skew higher as they upsell treatments, memberships, and retail.

Asia–Pacific, premium urban markets, and digitally enabled chains will likely outgrow the average thanks to consumer upgrades and efficient booking/yield management.

Build your plan on a base CAGR, then model “upside” cases tied to add-on services and utilization gains from technology.

It’s a key part of what we outline in the hair salon business plan.

Which regions earn the most today, and where is growth fastest?

North America and Europe generate the most revenue; Asia–Pacific is the fastest-growing region.

Share snapshots indicate North America ~36.8%, Europe ~20.1%, and Asia–Pacific ~28.9%. Digital adoption and middle-class expansion accelerate APAC growth.

Within countries, the U.S. hair salon market has scaled toward ~$60B across many operators, and tier-1 APAC cities show strong ticket upgrades and frequency recovery.

Allocate marketing and formats to local demand: premium color in wealthy urban areas; value cuts in suburban corridors.

Who are the main customer segments, and how are their preferences changing?

Millennials and Gen Z drive trends and social discovery; Gen X and Boomers drive steady spend and hair-health priorities.

Young clients want personalized, “Instagrammable” color, lived-in looks, and low-tox services; older clients reward salons that protect hair health and deliver consistency.

Men’s grooming keeps expanding with beard shaping, brow care, and clean fades; family bundles and memberships improve loyalty and cash flow across segments.

Personalized consultations, tiered stylists, and add-on treatments convert style aspirations into repeatable high-margin services.

You’ll find detailed market insights in our hair salon business plan, updated every quarter.

Which services contribute most to revenue growth?

Cuts and styling anchor revenue; color and specialty treatments drive ticket growth.

Across many salons, cuts/styling represent roughly 63%–67% of income, while color contributes ~23%; scalp and repair treatments are rising as add-ons.

“Transformation” services (complex color, smoothing, extensions) lift hourly yield when scheduled and priced correctly; bundling treatments with color boosts take rate.

Document clear service tiers and processing times to maximize chair utilization and retail attachment.

This is one of the strategies explained in our hair salon business plan.

How much revenue comes from retail products vs. services?

Retail is a smaller slice of sales but a bigger slice of margin.

Expect retail to be ~7%–15% of total sales, with gross margins around 42%–48% versus ~36%–40% for services; attach retail to every consultation.

Salon-branded ecommerce and stylist recommendations counter online competition and keep product dollars in-house; simple shelves with “problem–solution” signage work.

Forecast conservative retail share at launch and plan targeted growth via bundles, memberships, and post-visit emails.

Which technologies are most adopted, and how do they help performance?

Online booking and AI-driven tools are now standard growth levers.

Roughly 68%–72% of salons use booking apps, lifting bookings by about 24%; AI try-ons, style recommendations, and chatbots improve conversion and rebooking.

Yield management (dynamic gaps, automated waitlists), digital deposits, and no-show protection raise utilization and stabilize cash flow.

Adopt a single source of truth for clients and capacity so pricing, promos, and staffing align in real time.

How has client visit frequency changed since pre-pandemic?

Visit frequency has largely normalized, but behaviors are more digital and wellness-focused.

Clients plan ahead online, expect flexible rescheduling, and value tailored care plans; some at-home habits persist but do not replace professional services.

Memberships and maintenance plans (e.g., gloss every 6–8 weeks) smooth demand and protect frequency through seasonality.

Track rebooking rate, days between visits, and service mix monthly to catch early signs of frequency drift.

What are the prevailing pricing trends across services and regions?

Prices are highest in North America and Western Europe; specialty color and treatments command the strongest premiums everywhere.

Urban centers price above suburban/rural areas due to rent and labor; transparent tiering by stylist level keeps access points clear.

Use “good–better–best” menus: base cut, signature cut, and director cut; mirror the approach in color and treatments with clear timing blocks.

Revisit price ladders twice a year and protect margins with timed surcharges for extra product or processing.

What competitive pressures matter most today?

• At-home products and DIY color kits lowering basic spend for some clients.
• Freelance/booth-rent stylists competing on flexibility and niche specialties.
• Mobile salons offering convenience to time-poor customers.
• Online retailers capturing haircare product sales without stylist advice.
• Content creators setting trends and influencing salon choice locally.

What regulatory or labor issues shape salon costs and operations?

Labor tightness and compliance drive costs and staffing strategy.

Salons report stylist recruitment/retention challenges and rising rent/utilities; local labor rules (training, overtime, contractor vs. employee) require precise compliance.

Health-and-safety standards, chemical handling, and waste disposal add process—but also signal professionalism to clients.

Codify employment status, education paths, and safety SOPs; this reduces risk and helps retention.

What sustainability and ethical trends are shaping expectations?

• Low-tox, cruelty-free, and vegan lines gaining share with younger buyers.
• Biodegradable/returnable packaging and refills reducing waste in backbar and retail.
• Water/energy-saving equipment (eco-shower heads, efficient dryers) to cut utility costs.
• Transparent ingredient lists and sourcing improving trust and differentiation.
• Salon-wide recycling programs for foils, color tubes, and hair clippings.

Where are revenues strongest inside the menu, and how should I structure it?

Anchor your menu with cuts/styling and build profit with color and treatments.

Design for throughput (core cuts) and high-yield blocks (complex color, smoothing, extensions); pre-consultations align expectations and product usage.

Link retail to every service outcome (repair, protect, extend color) so clients leave with a routine and you lock in higher-margin revenue.

Use deposits for longer services and automated reminders to protect your calendar.

Get expert guidance and actionable steps inside our hair salon business plan.

How should I think about retail strategy versus service revenue?

Treat retail as a system, not an afterthought.

Pick 60–100 high-velocity SKUs, implement stylist scripts, and add QR codes to re-order online; run monthly product themes that match seasonal needs.

Track retail per client ticket (RPCT) and attach goals by stylist level; pay small spiffs on first-time regimen bundles to build habits.

Integrate POS + booking + CRM so product recommendations persist across visits and staff changes.

Which technologies are “must have” from day one?

Adopt online booking, deposits, automated waitlists, and basic AI try-on tools.

These raise utilization, reduce no-shows, and improve conversion on color services; use reminders and smart gap-filling to lift chair occupancy.

Add visual consultations via AR to speed decisions and cut redo risk; deploy post-visit emails with regimen links to grow retail share.

Choose one integrated stack to avoid data silos and double entry.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.

Sources

1. Business Research Insights – Hair Salon Market
2. Allied Market Research – Hair Salon Services Market
3. Cognitive Market Research – Hair Salon Market Report
4. IBISWorld – U.S. Hair Salons
5. Custom Market Insights – Salon Market
6. Vision Research Reports – Beauty Salon Market
7. Salon Today – The Financials of Retail
8. Perfect Corp – AI & Hairdressing
9. Fortune Business Insights – Salon Hair Care Services
10. The Hair Society – Innovations in Hair & Beauty