Cosmetology & Beauty Schools in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: May 2024
NAICS OD5627Revenue
$2.2bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
16,695
Businesses
1,230
Wages
$XXX.Xm
Cosmetology & Beauty Schools in the US industry analysis
Over the five years to 2024, the COVID-19 pandemic and fluctuating enrollment rates have created unusual volatility for cosmetology schools. Following the onset of the pandemic, the industry was quickly disrupted by school closures, dropouts and deferred enrollment amid stay-at-home measures. Admissions fell throughout 2020 amid overall economic uncertainty and skepticism surrounding cosmetology professions. Recovery from the pandemic spurred spending on personal care services as consumers released pent-up demand, though falling disposable income amid inflation limited the industry's recovery. Industry-wide revenue has been expanding at a CAGR of 1.1% to an estimated $2.2 billion over the five years through 2024. Revenue will swell by an estimated 0.6% in 2024 alone.
Trends and Insights
- Concentration is on the rise. Aspiring cosmetologists are shifting to low-cost or high-cost schools, forcing institutions in the middle out of the industry.
- Training in hairstyling brings in the most revenue. Hair cutting, dyeing and styling are more sought-after than nail servicing or esthetician treatments, so the segment trains the most students. Specialized nail and skin care training is becoming more popular, though.
- Cosmetology schools follow population density. Schools located in metropolitan areas can service more students per location and are much larger, but regions with a dispersed population contain more cosmetology schools.
- Schools compete on a local basis. Students aren't likely to travel for a trade school, so being located near potential markets is essential to securing enrollment. Localized demand makes the industry highly fragmented, though some major brands can compete on a larger scale.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 1.1 % over the past five years, to reach an estimated $2.2bn in 2024.
Trends and Insights
COVID-19 shut down cosmetology schools
- Federal and state mandates ordered the shutdown of cosmetology schools as the COVID-19 pandemic spread, stifling demand for the industry. Enrollment dropped as many dropped out or deferred admissions.
- Additional trends and insights available with purchase
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Beauty professionals will be more sought-after
- Cosmetology and beauty schools will continue to benefit from increased demand for personal appearance services, ranging from hair styling to nail and skin care. The success of beauty services will create higher wages and more available positions for students to apply to after graduation. Enrollment will climb as better postgrad job prospects entice recent high school graduates to pursue a career in cosmetology.
Biggest companies in the Cosmetology & Beauty Schools in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Paul Mitchell Advanced Education | 125.1 | 11.5 | 9.2 | |
Empire Education Group | 122.8 | 11.3 | 9.2 |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Cosmetology & Beauty Schools in the US
Products & Services
Industry revenue is measured across several distinct product and services lines, including Management and instructor training, Nail care training and Skin care training. Management and instructor training is the largest segment of the Cosmetology & Beauty Schools in the US.
Trends and Insights
Schools prepare students for careers in cosmetology
- Nearly 90.0% of the industry's revenue comes from vocational training. Haircutting and styling courses are the most popular choices by far as hair salon services are well-accepted by consumers. Women's haircutting is often much more expensive for consumers, making it a more attractive career to some.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Community Colleges in the US
- Trade & Technical Schools in the US
Complementors
- Cosmetic & Beauty Products Manufacturing in the US
- Hair & Nail Salons in the US
- Barber Shops in the US
- Aestheticians in the US
- Makeup Artists in the US
International industries
- Global Cosmetics Manufacturing
- Cosmetic & Beauty Product Manufacturing in Canada
- Technical and Vocational Education and Training in Australia
- Hairdressing and Beauty Services in Australia
- Technical and Vocational Education and Training in New Zealand
Table of Contents
About this industry
Industry definition
This industry includes schools that offer training in barbering, hair styling or cosmetic arts, like makeup or skin care. These schools provide job-specific certification to prepare students for a career as a beauty professional.
What's included in this industry?
Hair design and barbering trainingNail care trainingMassage therapy trainingEsthetics training Makeup artist trainingCompanies
Paul Mitchell Advanced EducationEmpire Education GroupPurchase this report to view all 2 major companies in this industry.
Related Terms
BRAZILIAN BLOWOUTESTHETICIANCOSMETOLOGY DIPLOMACOSMETOLOGISTIndustry Code
NAICS 61151 - Cosmetology & Beauty Schools in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Concentration is on the rise. Aspiring cosmetologists are shifting to low-cost or high-cost schools, forcing institutions in the middle out of the industry.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Training in hairstyling brings in the most revenue. Hair cutting, dyeing and styling are more sought-after than nail servicing or esthetician treatments, so the segment train...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Cosmetology schools follow population density. Schools located in metropolitan areas can service more students per location and are much larger, but regions with a dispersed ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Schools compete on a local basis. Students aren't likely to travel for a trade school, so being located near potential markets is essential to securing enrollment. Localized ...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The two major companies are gaining market share. By benefitting from economies of scale and well-backed reputations, Paul Mitchell Schools and Empire are able to continue op...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Paul Mitchell Advanced Education's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Empire Education Group's performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Paul Mitchell Advanced Education, and factors influencing its performance in the industry
- Description and key data for Empire Education Group, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Cosmetology schools need to be accredited. While not a legal requirement, students attending unaccredited schools won't be able to apply for federal grants, loans or scholars...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit remains high for beauty schools. Solid revenue growth in the aftermath of the pandemic has helped cosmetology schools manage rising salaries, and lessening competition...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
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Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Cosmetology & Beauty Schools in the US industry in United States in 2024?
The market size of the Cosmetology & Beauty Schools in the US industry in United States is $2.2bn in 2024.
How many businesses are there in the Cosmetology & Beauty Schools in the US industry in 2024?
There are 1,230 businesses in the Cosmetology & Beauty Schools in the US industry in United States, which has declined at a CAGR of 0.6 % between 2019 and 2024.
Has the Cosmetology & Beauty Schools in the US industry in United States grown or declined over the past 5 years?
The market size of the Cosmetology & Beauty Schools in the US industry in United States has been growing at a CAGR of 1.1 % between 2019 and 2024.
What is the forecast growth of the Cosmetology & Beauty Schools in the US industry in United States over the next 5 years?
Over the next five years, the Cosmetology & Beauty Schools in the US industry in United States is expected to grow.
What are the biggest companies in the Cosmetology & Beauty Schools in the US market in United States?
The biggest companies operating in the Cosmetology & Beauty Schools market in United States are Paul Mitchell Advanced Education and Empire Education Group
What does the Cosmetology & Beauty Schools in the US in United States include?
Hair design and barbering training and Nail care training are part of the Cosmetology & Beauty Schools in the US industry.
Which companies have the highest market share in the Cosmetology & Beauty Schools in the US in United States?
The company holding the most market share in United States is Paul Mitchell Advanced Education.
How competitive is the Cosmetology & Beauty Schools in the US industry in United States?
The level of competition is moderate and increasing in the Cosmetology & Beauty Schools in the US industry in United States.
