Market Overview

The domestic market for hair salon and barber shop cosmetics was valued at 161,700 million yen in FY2025, representing 100.4% of the previous fiscal year.

Amid accelerating inflation and declining real wages, consumers are tightening their budgets. They are visiting salons less frequently and becoming more selective about service offerings. As a result, hair salons and barbershops are generally struggling to grow revenue from core services.

In contrast, retail sales of products at hair salons and barbershops have remained resilient. Higher product prices have helped support salon performance while driving revenue growth for distributors and manufacturers on a value basis.

More recently, salons have increasingly introduced smartphone apps that enable customers to purchase salon-grade products online. By expanding customer touchpoints and increasing sales per client, these apps are helping to grow salon retail.

Noteworthy Topics

Manufacturers and Dealers Bolster Initiatives to Offset Slowing New Salon Openings

According to the Report on Public Health Administration and Services by the Ministry of Health, Labour and Welfare, the number of usage confirmations (the number of hair salons and barbershops newly registered) in FY2024 totaled 12,433 nationwide, down by 13.1% from the previous fiscal year. This indicates a decline for two consecutive years.

As career paths for hairstylist and barbers become more flexible and diverse, which coincided with the soaring initial cost of establishing a new hair salon/barbershop, freelance has become a viable option for hairstylists and barbers. The decline in the number of new hair salon and barber shops casts a shadow over bulk demand for professional haircare cosmetics and equipment, which used to be anticipated for each new opening.

In response to current market conditions, leading haircare manufacturers and dealers are intensifying their support for new salon and barbershop openings. Their comprehensive framework covers financial assistance—including upfront capital for deposits and renovations, as well as loan referrals to the Japan Finance Corporation —alongside real estate services such as site sourcing and interior design. Furthermore, they offer operational support through BPO services that handle everything from payroll and HR to IT and facility management.

Future Outlook

The domestic market for hair salon and barber shop cosmetics is projected to maintain moderate growth through FY2026. Over the medium-to-long term, however, a contraction is anticipated as shrinking demographics and persistent inflation reduce hair salon and barbershop foot traffic.　In response, manufacturers are diversifying their portfolios to help salons elevate the service experience, fostering long-term customer loyalty and increasing LTV per customer. Concurrently, manufacturers are pivoting from volume-based sales to a value-driven business model with strategic pricing.

Research Outline