The hair salon industry is growing as there is an increased emphasis on wellness, self-care, and fast-paced lifestyles. According to Global Market Insights, the “Salon Service Market was valued at USD 116 billion in 2023 and is anticipated to register at over 5.5% CAGR [USD 187 billion] between 2024 and 2032.”
Why Invest in a Hair Salon Franchise?
In addition to the growing market, there are several reasons why a hair salon franchise is an appealing business opportunity for entrepreneurs.
- Consistent Demand – With recurring services like haircuts and coloring, there is a consistent demand for services in the haircare industry.
- Recession-Resilient Industry – The “lipstick effect” is “when consumers still spend money on small indulgences during recessions…” (Investopedia) Due to the ‘lipstick effect,’ consumers continue spending on small indulgences like hair services even during recessions
- Established Business Model – A hair salon franchise in particular offers the advantages of a proven system, brand recognition, scalability, and support from the franchisor.
Current Trends in the Hair Salon Franchise Industry
Several key trends are shaping the hair salon industry. These include:
- Emphasis on Sustainability – “As consumers have become more and more environmentally conscious, industry operators have followed suit. Hair and nail salons are carrying more eco-friendly and nontoxic products, and cosmetic companies are continuing to remove harmful chemicals from many hair and nail salon products” (IBISWorld).
- Tech Integration – Salons utilize online booking systems and mobile apps for customer convenience. They’re also able to use tech to employ data-driven marketing strategies for client retention.
- Expansion of Specialized Services – There is an increase in niche services such as scalp treatments, hair restoration, textured hair care, and more. According to IBISWorld, “Heightened consumer spending will continue shifting more consumers toward more premium personal care services.”
- Personalization and Inclusivity – While the demand for premium services is going up, hair salons are still committed to “offering more services to cater to consumers with varying budgets” (IBISWorld). Personalized services also include tailored services for diverse demographics, including men’s grooming and multicultural haircare.
Factors to Consider Before Investing in a Hair Salon Franchise
If you’re thinking about buying a hair salon franchise, a few factors to consider include:
- Location and Demographics – It’s important to select a high-traffic area with the intended target audience. According to IBISWorld, “Highly populated urban areas are ideal locations for hair and nail salons. Busy consumers are attracted to salons that offer a one-stop shop for multiple services.”
- Initial Investment and Ongoing Costs – Make sure you understand the franchise fees (initial fee and ongoing royalties), rental expenses, equipment costs, and inventory expenses.
- Competition – The salon industry is competitive, so it’s important to understand the local salon market and differentiate your franchise from competitors. Key differentiators include unique services, customer experience, branding, and innovation.
Interested in Owning a Hair Salon Franchise?
A hair salon franchise lets you turn your passion for beauty into a profitable business with strong market demand. If you’re ready to start researching your options, FranNet is here to help. Our expert franchise consultants can connect you with a hair salon franchise or a different franchise if it’s a better fit. Either way, we’ll walk you through the process from start to finish. Schedule your free consultation today!
