NAICS 812112 Quarterly Industry Report
Beauty Salons
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 812112Sector: Other Services (except Public Administration) (81)Updated: Q1 2026
About This Report
This industry profile for Beauty Salons (NAICS 812112) draws on data from the U.S. Census Bureau[9], Bureau of Labor Statistics[6], and SBA size standards database[7]. Published by Fair Market Value and updated quarterly, it provides valuation professionals, personal services analysts, and beauty industry investors with current market data. All quantitative claims are sourced to publicly verifiable databases.
Industry Snapshot
Key metrics for the beauty salons industry.
NAICS Sector
81
Other Services (except Public Administration)
Industry Definition & Overview
Beauty Salons (NAICS 812112) encompasses establishments primarily engaged in providing hair care services and other beauty treatments using non-medical techniques per the U.S. Census Bureau[5]. Activities include hair cutting, trimming, and layering, hair coloring, highlighting, and tinting, permanent wave and chemical straightening services, hair styling and blowout services, shampooing and conditioning treatments, makeup application, and wig fitting and styling. Beauty salons operate across a wide spectrum from single-chair independent operators to multi-location chain brands, with the industry characterized by high fragmentation and low barriers to entry after obtaining required state cosmetology licenses. Booth rental and commission-based compensation models create a mix of employee and independent contractor workforce structures that affect salon economics and tax treatment. Hair coloring services have grown to represent a larger share of salon revenue as chemical color treatments, balayage techniques, and color correction services command higher per-service pricing than haircuts alone. Per Bureau of Labor Statistics[6] data, employment for hairdressers, hairstylists, and cosmetologists is projected to grow 5% from 2024 to 2034, faster than the average for all occupations, with roughly 84,000 annual job openings anticipated. Based on the SBA Table of Size Standards[7], the size standard is $9.5 million in average annual receipts. State cosmetology boards regulate practitioner licensing, facility sanitation, and continuing education requirements. OSHA[8] general industry standards address chemical exposure from hair coloring products, formaldehyde in keratin treatments, ventilation requirements, and ergonomic hazards from repetitive styling motions.
What's Included in This Industry
- Hair cutting, trimming, and layering services
- Hair coloring, highlighting, and tinting
- Permanent wave and chemical straightening treatments
- Hair styling and blowout services
- Shampooing and conditioning treatments
- Makeup application services
- Hair extension installation and maintenance
- Scalp treatment and hair loss services
- Wig fitting and styling
- Bridal and special event hair and makeup
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Other Services (except Public Administration) | 81 |
| Subsector | Personal and Laundry Services | 812 |
| Industry Group | Personal Care Services | 8121 |
| NAICS Industry | Hair, Nail, and Skin Care Services | 81211 |
| National Industry | Beauty Salons | 812112 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 812111 | Barber Shops | Barber Shops provides men's hair cutting and grooming services that overlap with beauty salons offering unisex service, with barber shops and beauty salons competing for male customers in markets where both types of establishments offer men's haircuts and beard grooming |
| 812113 | Nail Salons | Nail Salons provides manicure and pedicure services that complement hair care, with many beauty salon customers also patronizing nail salons for coordinated personal care appointments, and some full-service salons incorporating nail technician stations alongside hair styling chairs |
| 812199 | Other Personal Care Services | Other Personal Care Services includes day spas, tanning salons, and other personal care establishments that compete for the broader personal appearance spending budget, with beauty salons and day spas sometimes combining hair care and spa services in hybrid business models |
| 812191 | Diet and Weight Reducing Centers | Diet and Weight Reducing Centers serves the personal wellness market alongside beauty salons, with both industries targeting consumers investing in personal appearance and self-care through different service modalities within the broader personal services sector |
| 611511 | Cosmetology and Barber Schools | Cosmetology and Barber Schools trains the licensed cosmetologists who staff beauty salons, with cosmetology school enrollment and graduation rates directly affecting the labor supply available to salon owners seeking to hire stylists and colorists |
| 423440 | Other Commercial Equipment Merchant Wholesalers | Other Commercial Equipment Merchant Wholesalers distributes salon furniture, styling chairs, shampoo stations, and other commercial equipment through wholesale channels that supply beauty salon buildout and renovation projects with professional-grade furnishings |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 10.1% | 8,400 |
| 2 | Florida | 8.8% | 7,315 |
| 3 | New York | 8.5% | 7,074 |
| 4 | Texas | 6.8% | 5,608 |
| 5 | Pennsylvania | 5.8% | 4,823 |
| 6 | New Jersey | 4.4% | 3,670 |
| 7 | Illinois | 4.0% | 3,325 |
| 8 | Ohio | 3.3% | 2,723 |
| 9 | Georgia | 3.2% | 2,627 |
| 10 | Virginia | 3.1% | 2,583 |
% Of Establishments
0%
10%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
9,536
Total SBA Loans
$1.7B
Total Loan Volume
$182K
Average Loan Size
10 yrs
Average Loan Term
10.75%
Average Interest Rate
78,248
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Per the SBA Table of Size Standards[7], Beauty Salons (NAICS 812112) has a size standard of $9.5 million in average annual receipts for federal contracting purposes. SBA lending programs[10] support salon buildout, styling equipment, and working capital for qualifying beauty salon businesses. Eligible businesses can access SBA 7(a) loans[11] for working capital, equipment, and acquisition financing, while 504 loans[12] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Northeast Bank | 1,128 | $123.7M | $110K |
| 2 | The Huntington National Bank | 912 | $117.5M | $129K |
| 3 | Newtek Bank, National Association | 568 | $85.2M | $150K |
| 4 | Readycap Lending, LLC | 624 | $74.9M | $120K |
| 5 | Celtic Bank Corporation | 296 | $66.2M | $224K |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for beauty salons?
NAICS 812112 covers beauty salons providing hair cutting, coloring, styling, and other non-medical beauty services per the U.S. Census Bureau[5].
What is the SBA size standard?
Per the SBA size standard[7], the threshold is $9.5 million in average annual receipts for federal small business contracting eligibility and SBA lending products for beauty salon businesses.
Do beauty salon workers need licenses?
All states require cosmetologists to obtain state licenses per Bureau of Labor Statistics[6] occupational guidance, typically requiring completion of a state-approved cosmetology program of 1,000-1,600 hours and passing written and practical licensing examinations.
What is the employment outlook for cosmetologists?
Per Bureau of Labor Statistics[6] projections, employment for hairdressers, hairstylists, and cosmetologists is expected to grow 5% from 2024 to 2034, faster than average for all occupations, with roughly 84,000 annual openings from growth and replacement needs.
What is the difference between booth rental and commission?
Booth rental arrangements have stylists paying a fixed weekly or monthly fee to the salon owner for station use while keeping all service revenue, while commission models pay stylists a percentage of service revenue typically ranging from 40-60% with the salon retaining the remainder.
What chemical safety regulations apply to salons?
OSHA[8] standards address chemical exposure from hair coloring products, formaldehyde in keratin smoothing treatments, and ventilation requirements for chemical service areas. State cosmetology boards also set facility sanitation and chemical handling standards as part of salon licensing requirements.
How do beauty salons differ from barber shops?
Beauty salons (NAICS 812112) provide hair coloring, permanent waves, chemical straightening, and broader beauty services requiring cosmetology licenses, while barber shops (NAICS 812111[13]) traditionally focus on men's haircuts and shaves under separate barber licensing.
What drives beauty salon revenue growth?
Hair coloring services including balayage, highlights, and color correction treatments represent a growing revenue share for salons, with chemical color services commanding higher per-appointment pricing than haircuts alone and driving increased average ticket values per client visit.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]SBA Table of Size Standards sba.gov
- [8]OSHA osha.gov
- [9]U.S. Census Bureau data.census.gov
- [10]SBA lending programs sba.gov
- [11]SBA 7(a) loans sba.gov
- [12]504 loans sba.gov
- [13]NAICS 812111 census.gov
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