US retail product sales increased 6.5% in Q1 2022 compared to Q1 2021. According to Kline, this is truly remarkable news for the salon channel, which has faced many challenges over the past three years.
In addition to shutdowns and requirements to implement new health and safety measures impacting service capacity, salon operators are experiencing increased competition from e-commerce and retailers such as Ulta and Sephora. . Despite losing some share to these channels, salons remain the primary outlet for professional hair product sales. Sales are almost back to their pre-pandemic levels in the first quarter of 2019, according to Kline PRO USA, a database of salon retail products and services. Only 3.4% less.
Image credit: Kline & Company
Hair care consumption trends
Historically, the hair styling products and sprays category accounted for over 30% of all revenue, but that number has been steadily declining since 2019. 27.8% of total sales. You can’t miss the increase in sales of conditioners and treatments. Most of this shift in demand is likely due to reduced social engagement due to COVID-19, reducing the need for styling and finishing hairstyles. However, some trends that emerged over the past two years have extended into his first quarter of 2022 and are reflected in sales.
Ongoing product trends include repair/conditioning products, general/multi-purpose, volumizing, and color care products.
Future Salon Sales Outlook
The number of services in salons is still below pre-pandemic levels, Klein said in the report. In Q1 2022, that number is down 28% from Q1 2019. The good news is that there is room for growth. As the public adjusts to life with his Covid, people will feel more comfortable resuming pre-pandemic activities such as: Salon visits for services and purchase of hair care products.
