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How many Beauty Salons locations in the U.S. provide Hair Coloring services?
As of 2016, there were an estimated 75,000 beauty salons in the U.S. offerings hair coloring services. Franchise operations account for less than 15% of the industry. Below, you'll find a full explanation of my findings.
INSIGHTS
According to market research from 2014, which was the most recent research I could find that was free and publicly available on this specific topic, there were 82,000 beauty salons in the U.S. According to the report, "A typical salon offers hair cutting and styling, coloring, shampooing, and permanents." With roughly $56 billion in revenue, the hair care market accounts for 24% of revenue in the beauty industry.
In order to estimate a more updated figure, I looked at the industry growth reported in this article. It finds that the salon industry in the U.S. has grown at a rate of 3% over the last two years in terms of revenue. However, the number of salons actually decreased by 8.7%, "as traditional commission based salons closed in large numbers and large rental suites open." (You may notice that this article reports that there are 270,000 salons and barbershops in the U.S., which is much larger than the 82,000 from the other report; however, this includes skin and nail salons, as well as hair salons, which is why I did not use this figure).
So, if the number of salons decreased by 8.7%, that gives us an estimate of roughly 75,000 hair care salons in the U.S. in 2016 (82,000 - 8.7%).
On the bright side, however, Modern Salon reported this year that hair coloring remains a core service at salons in the U.S., and this service has grown by nearly 3.6%. Moreover, the number of barbers, hairdressers and cosmetologists in the U.S. is projected to grow by 10% through 2024.
Finally, the 2014 report found that the top 50 largest companies in this industry only account for 15% of industry revenue, indicating that the market is highly fragmented and is dominated by small, non-chain businesses.
CONCLUSION
In conclusion, there are an estimated 75,000 beauty salons in the U.S. offering hair coloring services. This market is worth an estimated $56 billion, and accounts for 24% of the beauty industry. The market is highly fragmented, with the top chain companies in the market accounting for only 15% of the total industry revenue.