Size of the Haircutting – Salon Industry

The hair care industry has experienced steady, on-going growth and in the future, will only get bigger.  Like other markets where there is no saturation point, such as the car industry or healthcare, there will always be a need and demand for hair cutting and styling services.

Even economic downturns don’t have much of a negative impact on the operating revenue of a hair salon.  The reason for this is due to the nature of this “evergreen” market.

Quite simply, the hair cutting industry will never go out of style.

Hair Cutting Industry Revenue

As a market segment, here are some statistics you can take to the bank:

  • In 2015, the overall beauty industry generated $56.2 billion in the United States.
  • The hair care industry tops market share by revenue figures at 24%; followed by the skin care industry with 23.7%.
  • Hair salons expect to generate between 5% to 15% of total revenue from the sale of hair care products.

Growth Opportunities

According to figures from the Bureau of Labor Statistics, there are almost one million people employed in the service segments of the beauty industry.  In 2014, the number of barbers, hair stylists and cosmetologists was reported to be 656,000. By 2024, that number is expected to grow by 10%.

No matter how you look at this industry, there are always growth opportunities on the horizon.  Some of those upcoming opportunities involve:

  • Organic and natural product development
  • Products and special services geared toward Baby Boomers and the aging population
  • Specialty, natural, allergen-free products marketed toward younger generation and children
  • Partnerships with related service providers or product manufacturers and distributors

Income Opportunities for Small Business Owners in the Haircutting/Hair Salon Industry

Using Supercuts as an example, a franchisee owner earns an average annual income of approximately $48,944.  The low end of the annual income range is approximately $34,080 to the high end of $59,353.  The 10% top tier performers earn as much as $76,185. Income is calculated from a number of factors, including base salary, bonuses and franchise operating expenses.

Average Dollar Amount Spent by Customer

The average cost of a women’s haircut in the United States is $44 and $28 for men. Across the country, a women’s haircut costs 50% more expensive than a men’s haircut. Prices vary across the country, with the average for a men’s haircut in New York coming at $37 while it’s $49 in San Francisco. For women, cuts could be $41 in Minneapolis and $73 in New York City.

An average Supercuts customer spends at least $12 to $15 for a junior haircut.  For an adult haircut, the range is anywhere from $14 to $34 depending on hair length, and if shampoo and styling services are included.  These prices do not reflect tips nor any products or additional services which vary by location.

The Benefits of a Hair Care Franchise Really Stack Up

Aside from the biggest benefit of a never-ending stream of customers generating recurring revenue in a multi-billion-dollar industry, there are even more benefits.

Lower Start-Up Costs

With a Supercuts franchise, you can take advantage of lower industry start-up costs.  This frees up more capital for you to invest in other areas of your business, such as advertising and marketing.

Lower Inventories

Setting up a salon is faster and easier than other franchise opportunities because there is no need to take up a lot of space with inventory.  The products for sale take minimal room, have a long shelf life and have a faster turnover rate. A benefit of saving both physical space and inventory space keeps overall costs down and is less of an up-front investment.

Repeat Business

The haircutting industry is one that is driven by need, not want. Hair care is necessary for the vast majority of the population, which means this type of business is one customers will have to purchase. There aren’t many people who will cut their hair themselves.

It’s an added bonus when you are established in the community because customers return to businesses where they feel comfortable. If they have a favorite stylist or enjoy the atmosphere of the store, they keep coming back to your business over another competitor. Repeat customers mean repeat business. This gives you as a franchisee a better handle on revenue projections for the month and the year. The business is predictable and stable.

Rinse and Repeat

Because Supercuts operates by following a proven business model, you simply plug into the system.  This allows you to use the easy-to-follow standard operating procedures without trial and error on your own.  After consistent application of the core set of guidelines, what follows is the launch of a business with the potential to scale.



A Supercuts franchise allows you both freedom and flexibility in your schedule.  Because the operation is run by on-premise managers, you can keep your day job or expand your business by investing in additional franchises.

What the Future Holds

As a small business owner, there are risks involved.  However, by joining the multi-billion-dollar hair care and salon industry by investing in a franchise, you can reduce the risks associated with making fundamental errors.

Based on the statistics, this industry is full of opportunities and will only continue to grow.  There will always be customers, new products/trends and opportunities for expansion and additional services.

This is one industry that will not be phased out by technology advances.  In fact, by incorporating technology into your franchise, you can run an even tighter, more efficient franchise.  Some of the tech-based services you can take advantage of include on-line appointment scheduling or kicking off a user-friendly web site/mobile app listing hours and stylists.  In this industry, technology will only help, not hurt, your business.


While definitions of beauty and hair cutting trends are ever-changing, these changes provide new opportunities for successful growth, expansion and business opportunities for a Supercuts franchisee; both now and in the future.