The numbers behind AI in beauty businesses.

The global salon services market was valued at USD 264.93 billion in 2025 and is projected to reach USD 522.61 billion by 2034, a 7.90% CAGR.

The US spa industry reached a record $22.5 billion in revenue in 2024, up 5.8% from $21.3 billion in 2023.

The number of US spa locations grew 0.6% to 21,980 in 2024, generating 187 million spa visits at $120.30 revenue per visit.

There were 1,334,753 hair, nail and skin care services businesses in the US as of 2026, an increase of 1.6% from 2025.

GlossGenius, the beauty and wellness management platform now rebranding to Genius AI, reports 125,000 businesses use the platform.

Average revenue per spa visit rose 2.3% to $123.10 in 2025 as total US spa industry revenue reached a record $23.5 billion across 191 million visits and 22,060 locations.

The average US hair salon runs an 8.2% net profit margin (about $19,100 in annual profit for the typical salon), with results ranging from 2% to 17% depending on how well the salon is managed.

The average US hair salon generates about $245,000 in annual revenue, part of a roughly $63 billion industry spread across 257,000 salons and barbershops.

Professional salon retail products carry an average margin of about 50%, versus roughly 8% on salon services, which is why retail mix drives overall profitability.

Salon staff compensation averages about 48% to 55% of salon sales, making payroll the single largest cost line and the main constraint on net margin.

In a salon and spa compensation survey, 44% of staff reported earning a commission rate between 50% and 59% (the most common band), and 93% of owners pay retail commission on top of service commission.

Among salons using booth rental, 74% charge rent as a standard flat amount while only 17% tie it to a percentage of sales, and 58% collect rent monthly.

The typical hair salon owner takes home about $40,000 to $80,000 annually, with one-to-three-chair salons at $30,000 to $50,000 and high performers above $100,000.

Median ticket per visit varies widely by beauty business type: medical spas $216, full-service salons $114, salons $77, nail studios $73, and barbershops $34.

One in five stylists said tips account for 20% of their annual income, while 47% of Americans believed salon and spa workers rely heavily or entirely on tips and 29% felt pressured to tip more than they want.

A salon can lose up to $200,000 per year in revenue and productivity when a senior-level or master stylist departs.

Acquiring a new customer is anywhere from five to 25 times more expensive than retaining an existing one.

Increasing customer retention rates by 5% increases profits by 25% to 95%, per research by Frederick Reichheld of Bain & Company.

Increasing each client's visit frequency by just one more appointment per year can boost salon revenue by as much as 30%.

About 50% of missed salon calls are high-intent, amounting to roughly 952 million high-intent calls lost each year, and recovering just 20% of them could add $7.4-11.1 billion in industry revenue.

A Harvard Business School study found that a one-star increase in a business's Yelp rating leads to a 5 to 9 percent increase in revenue.

Businesses with more than the average number of reviews bring in 82% more annual revenue than businesses with review counts below the average.

Zenoti benchmark data shows medspas lose about $820 per week ($42,640 per year) to no-shows, while salons lose about $132 per week ($6,864 per year).

US spa industry employment expanded 1.6% to 376,200 workers as of January 2025.

Nearly 1.18 million professionals worked in US personal appearance occupations in 2021, an 85% female workforce, including 713,000 hairdressers/cosmetologists, 103,000 barbers and 363,000 other personal appearance workers.

In 2021, 33% of US personal appearance professionals were self-employed, compared with only 7% of the overall US workforce, reflecting the prevalence of booth-rental and independent models in beauty.

US personal appearance jobs are projected to increase 13% between 2021 and 2031, more than double the projected 5% growth in total US employment.

59% of all employment-based salon and spa businesses are owned by women, versus just 21% of businesses in the overall private sector.

US employment of barbers, hairstylists and cosmetologists was 670,800 in 2025 and is projected to grow 7% from 2025 to 2035, with about 80,300 openings each year on average.

US manicurists and pedicurists held about 201,800 jobs in 2025, with employment projected to grow 9% from 2025 to 2035 and a median hourly wage of $17.19.

US massage therapists held about 155,400 jobs in 2025, with employment projected to grow 15% from 2025 to 2035 and a median annual wage of $58,450.

US skincare specialists (estheticians) held about 104,200 jobs in 2025, with employment projected to grow 9% from 2025 to 2035 and a median hourly wage of $21.79.

The median annual wage for barbers, hairstylists and cosmetologists was $35,880 (a $17.21 median hourly wage for hairdressers) in May 2025.

The median hourly wage for barbers specifically was $18.37 in May 2025 (about $38,210 a year), higher than the $17.21 median for hairdressers, hairstylists and cosmetologists.

The median annual wage for manicurists and pedicurists was $35,760 (a $17.19 median hourly wage) in May 2025.

The median annual wage for skincare specialists (estheticians) was $45,330 (a $21.79 median hourly wage) in May 2025.

The median annual wage for massage therapists was $58,450 ($28.10 per hour) in May 2025, the highest of the core beauty and wellness service occupations.

76% of salon owners surveyed said it was either difficult or very difficult to recruit new staff, underscoring an acute beauty-industry labor shortage.

Placing a newly trained colorist on the salon floor was estimated to cost about $13,000, and a cutter about $10,000, with salons not recouping the full training investment until years three to four.

98% of US small businesses use at least one AI-enabled tool, per the U.S. Chamber of Commerce's 2024 technology survey.

58% of US small businesses said they use generative AI in 2025, up from 40% in 2024 and more than double the 2023 rate.

55% of salon and spa clients say they are comfortable interacting with an AI receptionist, rising to 67% among clients aged 30-44.

50% of nail salon regulars say they are 'very comfortable' interacting with an AI receptionist, with a further 19% somewhat comfortable and only 15% uncomfortable.

Zenoti reports that AI-powered phone tools convert at least 40% of missed calls that had booking intent into actual bookings.

The share of consumers using AI tools to find local business recommendations climbed from 6% to 45% in a single year, making AI the third most-used discovery channel behind only Google and Facebook.

ChatGPT is the leading AI tool for local business recommendations, used by 31% of consumers in the last 12 months, followed by Google's AI Mode at 23%.

63% of salon and spa clients say having 24/7 receptionist access would be extremely or very valuable, since human front desks cannot cover after-hours demand.

71% of salon and spa regulars have skipped booking an appointment because it was too hard to reach someone or use the online system.

Only 54% of salon and spa appointment bookings happen during opening hours, meaning up to 46% of demand comes in when salons are closed.

28% of salon bookings happen in the evening after salons close and 18% happen early in the morning before salons open.

32% of salon and spa customers named online booking as an important feature when visiting a salon's website, rising to 43% among Gen Z clients.

43% of Gen Z salon clients (18-24) expect to see an online booking option on a salon's website, versus 36% of millennials and 32% of clients overall.

The average salon books 30% of appointments online while top-earning salons book 59% online, and 80% of guests say they want to book via mobile.

80% of salon and spa guests want to book via mobile, and 97% of medical spa clients want mobile appointment booking.

52% of spa customers will hang up or abandon their attempt to call after three minutes on hold, turning missed-call handling directly into lost bookings.

US salons and spas miss about 24% of the 7.56 billion inbound calls they receive each year (roughly 1.82 billion missed calls), and about half are high-intent customers ready to book.

Businesses that use deposits see a 32% increase in successful appointments on average, and fill 12% more cancellations using an automated waitlist.

GlossGenius reports that businesses using its automated reminders, confirmations and notifications achieve a 75%+ rebooking rate while reducing no-shows.

Nearly half of consumers (47%) choose a salon or spa based on a referral from a friend or family member, making word-of-mouth the leading way new clients pick where to book.

55% of Gen Z and 47% of Millennials say a salon's Instagram or TikTok activity is 'very' or 'extremely' important when deciding where to book.

52% of consumers were impacted by a provider's social media presence before scheduling a cosmetic appointment, up from only 9% in 2019.

53.6% of clients prefer to receive appointment reminders via SMS versus 16.9% who prefer email, showing text is the dominant reminder channel.

44% of clients now list texting as their preferred method of communication with a self-care business such as a salon or spa.

SMS messages are widely cited as reaching roughly a 98% open rate versus about 20% for email, with far higher response rates, making text the highest-reach channel for salon reminders and offers.

27% of salon clients returned and paid full price for a service that had first been introduced to them as a free 'treat' on their loyalty card.

Clients who book their first salon appointment online return for a second appointment 78% of the time, compared to just 39% for walk-ins, and reach a third appointment 54% vs 25% of the time.

The industry average retention rate for first-time salon and spa clients is just 35%, meaning roughly two out of three new clients never return for a second visit.

The typical salon or spa retains about 75% of its existing (repeat) clients, while top performers reach 85% or higher.

The average salon or spa client visits 4.88 times per year, though 7 to 8 visits per client is considered ideal.

Top-performing salons convert 70% of first-time visits into a second appointment and 57% into a third, versus just 45% and 39% respectively at average salons.

Once a client completes a second salon appointment, 70% go on to book a third (81% at best-in-class salons), showing the second visit is the key retention tipping point.

Salons, spas and clinics in the top percentile achieve a rebooking rate of 80% and above, versus industry averages in the 43% to 57% range across hair and beauty.

Nearly three out of four salon and spa regulars (73%) say they would be more loyal to businesses that offer easier booking and communication.

100% of the salons Phorest serves reported losing at least one staff member in the last three years, illustrating universal staff churn.

83% of consumers relied on rate-and-review sites when choosing a cosmetic procedure provider.

93.9% of clients will check Google and Yelp reviews when considering a new beauty service provider.

75% of consumers say they 'always' or 'regularly' read online reviews when researching local businesses in 2024, a share that has held steady over three years.

Google remains the most-used website for reading online reviews, used by 81% of consumers in 2024, down from 87% in 2023.

71% of consumers would not consider using a business with an average rating below three stars, and the majority still expect a rating between 4.0 and 5.0.

88% of consumers would use a business that replies to all of its reviews, compared to just 47% who would use one that does not respond at all.

77% of consumers use at least two review platforms when researching a business, with 41% using three or more sites.

Businesses that respond to their online reviews average 35% more revenue, yet 75% of businesses do not respond to their reviews at all.

56% of consumers say that a business's responses to reviews have changed their perspective on the business, and reviews influence 88% of consumers in discovering a local business.

Customers are 2.7x more likely to view a business as reputable if it has a complete Google Business Profile.

Zenoti's 2026 benchmark reports no-show rates of about 1% for full-service salons, 2% for salons, and 4% for barbershops, nail studios and medical spas.

The average no-show rate for salons and barbershops without a deposit system is 15-25%, costing the average salon roughly $18,000-$36,000 in lost revenue per year.

Guests cancel 8% of salon appointments on average, with nail salons and medspas highest at 16% and barbershops lowest at 2%.

Zenoti industry data finds 37% of all salon and spa calls go unanswered, and 82% of those missed calls happen during business hours while staff are busy with clients.

Most people whose call to a business goes unanswered never call back; a widely-cited industry figure puts it as high as 85%, who instead try a competitor.

Phorest states its salon software saves owners and staff 5-7 hours of admin time each week.

Most salons spend 8-12% of revenue on backbar supplies and retail inventory combined, a major cost line that leaks money when product is used personally, spilled, or left to expire.

Salons waste approximately 15-20% of hair color per service due to inconsistent measurement, pouring about 42,000 pounds of excess color down the drain across North America every day.

46% of all Google searches have local intent, meaning nearly half of searches are people looking for a business, product or service in their geographic area.

76% of people who conduct a near-me search on their smartphone visit a business within 24 hours, showing local search is high-intent and fast-converting.

'Near me' and 'close by' search queries have surged 900% over two years, reflecting the rapid rise of proximity-based discovery.

70% of local search queries come from a mobile device, meaning local intent is disproportionately mobile.

In a 2024 clickstream study, 58.5% of American Google searches resulted in zero clicks, with users getting answers directly on the results page.

In the first four months of 2026, 68.01% of Google searches ended without a click, up from 60.45% in 2024, as AI answers and on-page features absorb more searches.

Google AI Overviews appeared on 6.5% of queries in January 2025, surged to just under 25% at their July peak, then pulled back to less than 16% by November 2025.

Customers are 70% more likely to visit and 50% more likely to consider purchasing from businesses with a complete Google Business Profile.

Roughly 296,000 US hair salon businesses have no website at all, an estimated 27% of the roughly 1.1 million hair salons operating.