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What is the U.S. market size for tattoo ink? I'm not looking for the total market size for tattoos -- just for the ink that is used in a tattoo.
Hi there! Thanks for asking Wonder to find the US market size for tattoo ink. Here is the short version: Through careful triangulation, we can estimate that the US tattoo ink market is approximately $115.5 million. Although segmented reports on the US tattoo ink market were not available, we managed to calculate our estimate based on the size of the US tattoo market and the fraction of sales represented by the cost of tattoo ink.
Below you will find an overview of our methodology and a deep dive of our findings.
METHODOLOGY
To start out, we want to reference the previous Wonder research that addresses your request for the global market size for tattoo ink. In order to provide consistent results, we used that research as a template for this brief so that we could continue in the same vein of logic.
In response to your question, our team searched for readily available reports on the US tattoo ink market. Although we found several reports that deal with the topic (IBISWorld, BharatBookBureau, MarketResearch), the figures are either protected by a pay wall or are a general study of the industry as a whole. Since segmented data on the US tattoo ink sector is scarce, we widened the parameters of our search to explore the tattoo industry at large. Once we found a US tattoo market value, we hunted down supporting data to help us conduct a back-of-the-envelope calculation illustrating the percent of the US tattoo market belonging to tattoo ink. Let's dig in!
US MARKET SIZE OF TATTOO INK
After a methodical search of industry reports and trusted media sites, we were able to identify several reputable sources for calculating a market figure. Since the requested value was not publicly available, we used a handful data points from our previous Wonder research to triangulate a rough estimate for the US sector. Below, we will walk through a series of assumptions and calculations:
1. According to the Pew Research Center, the size of the 2015 US tattoo market was estimated to be approximately $1.65 billion. This statistic can be found in a Smithsonian Insider article published in October 2015.
2. Another useful source is a sample tattoo parlor business plan that was posted on the BPlans website. (The plan belongs to Tablature Tattoo from suburban Greenwood, NJ. We will use this financial template as a proxy for our calculations.) The document was critical in helping us estimate the cost of ink as a fraction of overall sales.
3. Page 5 of the business plan implies that the direct cost of sales refers to the cost of ink and supplies. ("The cost of sales for the services offered is 8% for shop-minimum tattoos, 7% for basic tattoos, and 6% for full sessions, as ink and supplies becomes less of a cost as the longer sessions involve more preliminary design work and less 'ink per hour'".) On page 2, we learn that supplies typically include "chemicals (sterilizers, antiseptics, disinfectants, ointments and soap), paper products, linens, towels, gloves, and skin marking supplies (thermofax, stencil paper, pens, skin scribes)".
4. Page 7 gave us some insightful data. Under the "Pro Forma Profit and Loss" section, we used the Year 3 column values as our standard. Using this report as a proxy for the US market, the cost of tattoo ink appears to be about 7% of total service sales. Let's put the numbers together:
(Direct cost of sales - cost of supplies) / total sales = Ink (%)
5. If we make the assumption that this percentage (7%) can also be applied to the US tattoo industry as a whole, we can estimate the US tattoo ink market to be approximately $115.5 million. (.07 * $1.65B = $.1155B or $115.5M)
6. Please keep in mind that this is a very rough approximation since our number was found using data from 2015 and a proxy tattoo parlor business plan. Furthermore, a 2016 article in AuthorityTattoo suggests that color and quality have a significant impact on the price of ink. Despite these deviations, we feel that our figure provides a reasonable estimate for the purpose of this study.
POSSIBLE CONTINUED RESEARCH
Over the course of our hunt, there were a few US tattoo market trends that caught our eye. If it's of any interest, we want to suggest the following topics as possible tangents for future research. Enjoy the read!
1. A 2015 report abstract from BharatBookBureau hints at the typical demographic of tattoo consumers in the US. Research indicates that tattoos have become especially en vogue with Millennials, feeding a burgeoning industry of well over 20,000 tattoo studios. In 2016, TheHarrisPoll indicated that 47% of Millennials and 36% of Gen Xers admit to sporting at least one tattoo, compared to a mere 13% of Baby Boomers and 10% of Matures. It seems that tattoos can be quite catching; polls show that 69% of respondents (across generations) boast two or more!
2. MonsterSteel, an established online wholesaler of tattoo supplies, published a ranking of high-quality tattoo ink brands manufactured in the US. Those companies include Eternal Ink, Intenze, Dynamic Inks, Millennium Moms, and Starbrite Tattoo Inks. These brands are recognized for their "premium pigments", consumer loyalty, and dedication to safety.
3. An FDA white paper published in March 2017 discusses the controversy and regulations around "toxicity of color additives and contaminants" in tattoo ink. The European Chemicals Agency (ECHA) even suggests that tattoo ink may increase the risk of cancer, according to a 2016 report from FoxNews.
CONCLUSION
To wrap it up, we can estimate that the US tattoo ink market is approximately $115.5 million. Although segmented reports on the US tattoo ink market were not available, we managed to calculate our estimate based on the size of the US tattoo market and the fraction of sales represented by the cost of tattoo ink.
As always, thanks for using Wonder. We hope this information will help inform your investment decisions. Please let us know if we can help with anything else!