Beauty Service Industry Trends & Statistics in 2023

The beauty industry has undergone some changes since the onset of the pandemic, which has altered the entrepreneurial landscape for being in the industry. While some of the outcomes have seemed dire, the changes in the industry fit well into the MY SALON Suite franchise opportunity. Here’s why:

Challenges from the pandemic

A 2022 article by McKinsey & Company, The beauty background: The sprint to win on services, discusses the past few years of the beauty services industry. Every aspect of beauty – skin care, cosmetics, hair care, fragrances and personal care – was impacted. As more people worked from home, their personal care routines relaxed and DIY options in beauty took center stage. With fewer events or activities to draw people out, the industry experienced significant losses. An estimated 20% of salons closed permanently. McKinsey estimates it will take six years for sales to return to pre-pandemic levels.

So, where’s the good news in all of this?

Since the height of the pandemic, and despite the prevalence of DIY options, the beauty services industry already has a compound annual growth rate (CAGR) of 7%. The disruption of services also changed how people approach outside beauty services, what they want from service providers and how businesses in the industry can capitalize on these changes.

One of the most important changes for business owners in the industry is the increase of specialized services. The McKinsey & Company article notes options such as luxury spas and salons, nonsurgical skin services and specialized hair services as trending. These are changes that fit well with the MY SALON Suite opportunity.

Exploring the MY SALON Suite franchise

MY SALON Suite is a niche franchise opportunity that offers private suites for professionals in the beauty industry (hair stylists, skincare professionals, cosmetics, personal care, etc.) The professional rents a private space in the salon complex and operates an independent business. The combination of professional services works off each other to make the MY SALON site a key beauty locale in the community. As the franchise owner, you are the landlord. 

Your tenants, the salon professionals, have the flexibility to earn 100% of their revenues and can sell their own products. If you’re a beauty professional, you might choose to also run a business from a private suite with the additional revenue stream of earning revenue from your tenants. However, you don’t need any beauty industry experience at all. Many of our franchise owners choose to simply run the MY SALON Suite business without participating as a beauty service provider. Most MY SALON Suite franchise owners work 5 to 10 hours per week. 

Why it works so well

The McKinsey & Company report correctly notes that the beauty services industry has long been fragmented because it has a low barrier to entry. While the fragmentation is expected to increase, rent-a-space salons are in prime position to benefit from this situation. Across the entire industry, the McKinsey & Company report noted some key trends that will drive business in the future, and they are trends that, again, favor a MY SALON Suite franchise owner.

Product + service options

While products and services might have been independent of each other in the past, consumers are increasingly seeking options where both are available from a single place. This works well for MY SALON Suite because one location can offer multiple services, and within each of those services, the salon professional can deliver a strong product line as well.

Merchandise sold at spas and salons will continue to grow faster than the overall services market. The report estimates that product sales from inside salons will grow from roughly $4 billion today to $6 billion by 2027.

Specialized versus generic service

Consumers have had some time to experiment with at-home substitutes, and some of those choices will be sticking around. However, what customers want is a unique experience that they cannot achieve with an at-home option. Customers are looking for a more unique experience as opposed to the no-frills, undifferentiated service. 

Customers want a more specialized experience with services tailored to them. What this means is that salon professionals can become more specialized in how they offer services. An example might be a salon that targets men or a salon service that caters to patrons with curly, textured or thin hair.

This increase in speciality services makes the MY SALON Suite opportunity more attractive with the individual salon layout. Specialized services can benefit from a combined location.

Growth in certain procedures

Some procedures are simply not easy or possible to do at home, and that trend is one to pay attention to in the beauty services industry moving forward. A strong example of this includes injectables, advanced hair treatments and advanced skin treatments. In addition, services requiring machines, such as laser treatment, are less likely to be done at home. Where chemicals are required, such as peels and lash lifts, a customer is more likely to seek out a professional. 

While simpler services can be done at home, these more specialized treatments make good options for tenants at a MY SALON Suite location.

What is the MY SALON Suite benefit?

MY SALON Suite has more than 250 locations in the U.S. and uniquely offers a fully equipped complex. This includes 24/7 security access so individual salon professionals can personalize their hours, Wi-Fi, double-door buzzers, luxurious bathrooms and an elegant lobby.

As the owner of a salon suite franchise, you benefit from marketing and business development training to help grow the business and attract new professionals to join your MY SALON Suite location.Learn more about building a thriving business with MY SALON Suite. Request franchise information