Market Overview

Hair salon and barbershop market in Japan is estimated to reach 2.10 trillion yen in FY2025 (99.0% of the previous fiscal year), indicating a year-over-year decline for the first time since FY2020. Neither the barber shop segment nor the hair salon segment achieved a year-over-year growth. Based on the financial results of the 49 operators surveyed, growth was concentrated among the highest-ranking companies, with merely eight achieving a growth exceeding 5%. A notable number of operators saw year-over-year declines, especially those with revenues around 1 to 2 billion yen.

The rise in service prices between the fall of 2022 and 2023 reflected growing utility, labor, and cosmetic costs. Although the immediate impact on customer sentiment was minimal, recent studies indicate that a growing number of salons and barbers are now experiencing a drop in customer visits and longer intervals between appointments. As consumers cut back on hair care spending—often switching to budget salons or quick-cut shops—the number of barbershops is declining due to closures, and there are fewer new hair salon openings. While existing salons struggle with customer acquisition, higher average spending per visit continues to support overall market size. According to the survey of hair care product manufacturers and dealers*, a key driver of the hair cosmetics market in FY2025 was the rising price of products sold both through salons and barbershops, as well as products sold to these establishments. Looking ahead, further service price revisions are expected to play a crucial role in shaping future market growth.

* “Hair Salon and Barber Shop Cosmetics Market in Japan: Key Research Findings 2026”
https://www.yanoresearch.com/en/press-release/show/press_id/4090

Noteworthy Topics

Moving Away from Booking Platforms: Growing Client Base On Its Own

As the number of hair salons continues to grow, competition has become increasingly fierce, prompting a costly advertising race on booking platforms and deepening operators' dependence on third-party portals. Although some have started marketing independently via social media in recent years, most salons and barbershops remain dependent on these platforms for customer acquisition and retention. However, subscription fees and steep commissions severely squeeze profit margins, particularly for solo-stylist owning a salon and small-to-medium-sized establishments. Consequently, heavy platform ad spending has evolved into a substantial business liability. Developing their own marketing channels is expected to curb advertising expenses and bolster the overall resilience of salon businesses.

Future Outlook

The size of the hair salon and barbershop market in Japan is estimated at 2.10 trillion yen in FY2026 (99.9% of the previous fiscal year’s levels), with barbershop segment attaining 0.59 trillion yen (99.7% on the same basis) and hair salon segment attaining 1.51 trillion yen (99.9% on the same basis). Given the overall decline in FY2025, the market is projected to remain stagnant.

Research Outline