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Industry: Email Alert RSS FeedTanning salons growth is spray tans
Household & Personal Products Industry, Oct, 2009
In addition to being a discretionary service in a troubled economy, growing concerns about skin cancer and the rise of a health-conscious society are hindering the $2.7 billion tanning salon industry. According to industry research firm IBISWorld, the market will decline by 5.1% this year.
However, there might be one bright spot for the industry: the shift in consumers moving from tanning beds to tanning sprays.
"By far, ray-lamp skin tanning is the number one revenue source for tanning salons at 72%, but growing awareness of the high cancer risk associated with their use continues to diminish market share," said George Van Horn, senior analyst with IBISWorld. "Profit levels are higher with spray-on tanning booths; therefore the shift toward these substitutes may actually improve the industry."
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Although UV-bed tanning sessions on average cost from $5 to $7, the industry is reliant on high turnover, with sessions typically lasting 15 to 20 minutes. The rising popularity of spray-on tanners, which now account for 11% of industry revenue, is expected to grow to a whopping 17% in 2009, according to IBIS.
"Tanning salons are operating in a mature market, and to stay in the game salons need to adapt to market trends and offer innovative spray-on tanning products and services," added Mr. Van Horn. "Because this is a long-term shift, those who diversify their menu, such as providing health and beauty services, will also have a greater chance in generating revenue."
More info: www.ibisworld.com
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