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Cosmetology & Beauty Schools in the US - Market Research Report (2014-2029)

Gabriel Seiler Gabriel Seiler New York, United States Last Updated: May 2024 NAICS OD5627

Revenue

$2.2bn

2024

$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.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

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
Cosmetology & Beauty Schools in the US
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

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
IBISWorld Logo Source: IBISWorld

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

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 training

Companies

Paul Mitchell Advanced EducationEmpire Education Group

Purchase this report to view all 2 major companies in this industry.

Related Terms

BRAZILIAN BLOWOUTESTHETICIANCOSMETOLOGY DIPLOMACOSMETOLOGIST

Industry Code

NAICS 2017

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)

Top Questions Answered

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.

Related Industries

Widen your 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

View all industries in United States

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Key data sources in the US include: 

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  • Industry federations or regulators
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