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Hair Salon Industry Trends for Growing Your Salon Business  

When running a business, it’s helpful to understand the hair salon industry trends that can affect your bottom line, especially in an industry where the styles in favor are constantly changing. In the salon business, knowing the top industry trends will give you an edge over your competition and allow you to keep customers looking for these trends satisfied.  

In this article, we’ll discuss the top hair salon industry trends and for the coming years that you need to know to keep your salon growing. 

Post Covid-19 Salon Industry Stats 

Covid-19 had a major impact on the hair salon industry. In April of 2020, foot traffic in hair salons dropped by 60% due to government-mandated closings and social distancing guidelines. 2020 also saw a nearly 3% decrease in consumer spending as wages and employment rates dropped. All in all, reduced demand due to the pandemic weighed on revenue and profit significantly. 

While 2020 was a difficult year for everyone, 2021 brought growth as the vaccine and loosened mandates helped increase revenue in the salon industry. Employment levels rose, and consumer spending followed. But what does 2022 look like so far? According to IBISWorld, the hair salon industry is expected to increase by 16.9% by the end of the year. 

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Hair Salon Industry Trends  

Hair colors and styles are trends that seem to change all throughout the year, but there are some salon industry trends that grow steadily over a period of multiple years. Here are some of the more lasting hair salon industry trends we predict for the coming years: 

Use of Technology 

Technology in the hair salon industry has been advancing rapidly. For example, modern reservation and payment systems allow consumers to book appointments and check in online, which frees up more stylist time for other priorities. Salon owners can also use tech to track key business metrics, which provide crucial insight into performance that can help you make better business decisions. Such modern technology is expected to be a contributing factor to the revenue growth expected in the next five years. 

Social Media Marketing 

With the growth and ease of social media platforms like Tik Tok, Instagram, and Facebook, hair salon operators are expected to continue to leverage these platforms and websites to market their business to consumers at a relatively low cost.  

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More Consumers 

Adults between the ages of 20-64 are the key drivers of demand in the hair salon industry because they are of working age and tend to have higher disposable incomes. We expect to see a rise in the number of people in this age group and a rise in their per capita disposable income. As these adults have more money to spend on services such as haircuts and additional hair care treatments, the number of consumers in the salon industry is likely to rise.  

Revenue Increase 

Due to the growth of the economy, the increase in jobs and consumer spending, and increased prices due to inflation, high revenue growth is expected for the salon industry between 2021-2026. As household income levels increase, consumers are expected to indulge in higher-value hair services more often. For example, in addition to haircuts, consumers will likely be interested in hair color or tinting services.  

Furthermore, as people return to work and have less free time, consumers will likely favor time-saving professional salon products and services over less expensive alternatives.  

Check out Owning a Hair Salon: Your Launch Guide

Natural & Organic Products  

According to a recent study by the National Institute of Health, permanent hair dye and chemical hair straighteners have been linked to a higher risk of developing breast cancer. Because of this, over the next five years, it is expected that consumers will become increasingly concerned with the health effects of the products that are used on them and will shift to prefer or even demand organic and natural products.  

Salons will have to offer an array of eco-friendly products to appeal to this shift in preferences. Luckily, non-toxic products will likely increase industry revenue, as natural hair products tend to have higher prices than their non-natural counterparts.  

Expanded Service Offerings  

Another growing trend we’re seeing is hair salons expanding their service offerings. For example, in addition to offering haircut and coloring options, there is a growing demand for other services, such as keratin treatments and makeup services. Customers want to be able to take care of all their beauty needs in one convenient place. 

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Get the Tools & Support You Need to Grow Your Salon Business 


Want to spend more time researching and capitalizing on salon industry trends and less time on day-to-day salon operations? SalonBiz offers a seamless salon management software that can help you manage everything from appointments and marketing to inventory, reporting, and more. Maximize your time and resources and elevate your salon with our end-to-end solutions. 

Book a free demo today to learn more! 

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