The salon industry in 2025: trends to watch, revenue benchmarks, and what to do next.

TL;DR

• U.S. market size (hair salons): ~$60.6B (2024). IBISWorld

• Hair & nail combined (U.S.): ~$90.4B (2024); ~$90.9B (2025). IBISWorld  Businesses: ~1.05M hair salons; 1.40M hair & nail salons (2024). IBISWorld

• Average hair salon revenue (employer establishments): ≈ $321K/yr (2022) (Census/FRED receipts ÷ employer establishments). FRED

• Typical profit margin: often cited around ~8% (range varies by model). The Salon Business

• Client retention: securing a second visit is the tipping point; online first-time bookings retain ~2x better than walk-ins. Salon Today

• After-hours demand: ~46–50% of bookings happen when salons are closed. Salon Today

• Jobs outlook: BLS projects +5% growth (2024–2034) for barbers, hairstylists, and cosmetologists. Bureau of Labor Statistics 

Why this matters

The salon leaders winning market share aren’t guessing—they’re aligning operations to how clients actually book, buy, and return. We’re going to outline how you can do the same. Use the stats below to set targets, then steal the playbooks under each section.

The salon industry at a glance (benchmarks to beat)

1) U.S. market size (hair salons)

The U.S. hair salon market is $60.6B (2024) and $60.0B (2025) — this is your backdrop for pricing, staffing, and capacity planning. IBISWorld

Do this next: Benchmark your YoY growth vs. category; expand chair time where demand spikes first.

2) Hair & nail market size combined (U.S.)

Hair and nail revenue is $90.4B (2024), edging to $90.9B (2025) — a huge, fragmented, and growing market where access often beats price. IBISWorld

Do this next: Differentiate on convenience (everywhere booking, fewer steps), not discounts.

3) How many salons are you competing with?

There are roughly 1,051,796 hair salons and 1,398,250 hair & nail salons in the U.S. (2024). IBISWorld

Do this next: Double-down on local SEO and review velocity — that’s how clients filter options and choose where to spend their money.

4) Average hair salon revenue (what owners really want)

A clean benchmark for employer salons is ≈ $321,000/year (2022).
Math: FRED reports $27.035B in receipts for NAICS 812112 employer firms; Census lists 84,176 employer establishments ⇒ ≈ $321K per establishment. FRED

Caveat: Solo/non-employer shops vary; treat this as a staffed-salon baseline.

Do this next: If you’re < $300K with payroll, audit utilization, pre-booking, and add-on rate to see where you might be able to improve.

5) Profitability (set a realistic target)

Industry commentary commonly cites ~8% net margin, with wide variation by rent, labor, pricing, and retail execution. Well-run salons can push into double digits. The Salon Business

Do this next: Track service vs. retail margins separately; build bundles to help raise your blended margin 2–3 pts.

Retention, booking, and client behavior (where the money is)

6) The second-visit tipping point

Clients who book a second appointment are far more likely to become loyal customers. Trade coverage of Boulevard’s retention research shows first-time online bookings return for a second visit ~78% of the time vs ~39% for walk-ins — roughly 2x better. Don’t skimp on your online bookings. Salon Today

Do this next: Make sure their first visit is flawless and pre-book visit #2 at checkout; if they decline, check in with an auto-nudge 24 hours later with smart times.

7) After-hours is real demand, not an edge case

Industry research shows ~46% of bookings happen when salons are closed; one 2023 dataset found 64% of clients booked outside 9–5 and 75% via online booking sites. If you’re not bookable 24/7, you’re invisible when demand spikes. Salon Today

Do this next: Offer 24/7 self-booking, confirmations, deposits, and waitlists. Extend reminder windows for early-morning slots to cut no-shows.

8) Ratings now gatekeep discovery

71% of consumers won’t consider a business below 3★ — low ratings can quietly cap your growth and turn off potential customers. BrightLocal

Do this next: Automate post-visit review requests; reply to every review within 48 hours.

9) Jobs & staffing outlook

BLS projects +5% employment growth (2024–2034) for barbers, hairstylists, and cosmetologists, with ~84,200 openings per year (replacements & growth). Bureau of Labor Statistics

Do this next: Build a top talent recruiting moat with education pathways and flexible scheduling; use reviews and socials as your employer brand.

Salon industry trends to use now

1) Frictionless, everywhere booking

Clients expect one-tap scheduling — especially on mobile and after hours. Make digital conversion, not front desk capacity, your growth plan (see demand data above). Salon Today

Quick plays

• Add “Book now” buttons across your website, Google, and Instagram; keep steps minimal so it’s fast and simple for your clients.

• Track first → second retention weekly; coach stylists on pre-booking language.

2) Modern retail: convenience & personalization

Clients will buy if it’s easy, personalized, and relevant — synced inventory, click-to-buy at checkout, and stylist-recommended bundles in post-visit messages.

Quick plays

• Launch a simple e-comm page synced to in-store stock; offer pick-up at next visit.

• Bundle by hair type and goals using CRM history; trigger follow-ups with stylist notes.

3) AI hype vs. automation wins

Generative AI is great for drafts and ideas. The immediate ROI still comes from automation that reduces no-shows and boosts rebooking (reminders, deposits, waitlists, personalized follow-ups).

Quick plays

• Automate confirmations, deposits, and rebooking prompts.

• Use templates that pull client preferences and avoid pasting sensitive data into general AI tools.

Salon owner cheat-sheet (set targets; track weekly)

• Average hair salon revenue (employer salons): ≈ $321K/yr (2022) — aim for $350K+ with 2–3 chairs. FRED

• Net margin: Build from ~8% toward 10–12% via add-ons, memberships, and retail discipline. The Salon Business 

• First→second retention: push to 60–70%+ with pre-booking & digital nudges to rebook. Salon Today 

• % online bookings (all visits): target 60–70%+ to meet clients where they book (especially outside hours) and improve retention. Salon Today 

FAQs

What is the average hair salon revenue?

A clean, census-based benchmark for employer hair salons is ≈ $321,000/year (2022), calculated from U.S. Census/FRED total receipts divided by the number of employer establishments (NAICS 812112). Your mix (renter vs. employer, location, service menu) will shift this up or down. FRED

Are salons profitable? What’s a good margin?

Industry commentary commonly pegs net margin around ~8%, with a wide range based on rent, labor, and retail execution. Well-managed salons can reach double digits. The Salon Business

How big is the salon industry in the U.S.?

Hair salon market size is about $60.6B (2024); hair & nail combined is roughly $90.4B (2024) and $90.9B (2025). IBISWorld

How many salons are in the U.S.?

About 1.05M hair salons and ~1.40M hair & nail salons (2024). IBISWorld

What actually improves retention?

Online booking & pre-booking the second visit. Clients whose first visit was booked online are about 2x more likely to return than walk-ins. Salon Today