Prior to the pandemic, most of us didn’t realize the barbershop is one of the essential services we use to stay clean, looking, and feeling good. Even in a time period of stay-at-home orders and Zoom meetings in sweat pants, everyone still wants to look good. Assuming you don’t want to be one of those people with a DIY haircut, the barbershop continues to be a local business we rely on even in these uncertain times.
In most areas, barbershops are in operation again and customers are appreciating the sense of normalcy visiting a salon has to offer. As the saying goes, “This too shall pass”.
The U.S. barbershop market is a $5 billion industry that employs more than 150,000 people. In this market report, we showcase some of the industry’s statistics, outlook in the years ahead, and upcoming trends like going mobile and embracing technology. Let’s do this.
Barbershop Industry Numbers
The U.S. barbershop market size is estimated at around $5 billion. (IBISWorld)
The estimated job growth in the barber shop industry is pegged at 1.1% (Data USA)
The U.S. barber shop industry has averaged an annual growth of 5.9% in the past 3 years reaching $1.1 billion in revenue. (Kentley Insights)
There was a 23% drop in barbershops across the U.S. from 1992 through 2012. Be careful where you decide to open your shop. (Forbes)
There are approximately 131,077 barber shop businesses in the U.S. No matter what market you’re in or the economic outlook, folks still need haircuts. (IBISWorld)
44% of American men visited a barber in the past year. This is a personal maintenance habit that will be passed onto future generations. (MindBody Business)
In 2020, the federal government spent a total of $21,395 on barbershops. It has awarded 3 contracts to 3 companies with an average value of $7,132 each company. Cutting the hair of a government employee can be lucrative. (Anything Research)
The Global Barber Supply Market
The global barber supply market is anticipated to gain revenue of around $20 billion dollars. This is an incredibly large market that includes shampoo, hair gel, and conditioners. (OpenPR)
The annual growth of the industry was on an average of 1.9% from 2012 to 2017. (OpenPR)
In the years 2017 to 2022, the industry is anticipated to develop by 3% per year. (OpenPR)
The barber shop industry includes 4,377 companies in 4,845 locations. (Kentley Insights)
The average employee age is 39.5. This suggests that there is a wide-range of barber professionals young, old, and middle aged. (Data USA)
The barber shop industry employs roughly 152,201 people. (IBISWorld)
Profitability of Barbershops
In California, the average payroll per employee is at $23,590 annually. The average salary of a barber in the US amounts to $30,414 per year. (Avenue Five Institute)
Locations with a lower level of income, shops may only be able to charge $7 – $10 a haircut. Take time to consider the type of babershop and the clientele you want to serve prior to opening for business.
In the U.S., the lower paid barbers receive an average of $19k per year and the highest paid barbers bring in more than $42,000 per year. (Avenue Five Institute)
The average annual income for a barbershop owner is $27,000, which comes out to about $11.00 an hour according to the Bureau of Labor Statistics. Of course most experts agree many barbers don’t fully report cash tips to avoid being taxed.
The 10-year expected average salary in the industry is $27,718 a year. (Data USA)
Occupational Employment and Wages
States with the highest employment level in this occupation: (U.S. Bureau of Labor and Statistics)
Hourly average wage
New York $16.15
States with the highest concentration of jobs and location quotients in this occupation: (U.S. Bureau of Labor and Statistics)
Highest paying States for this occupation: (U.S. Bureau of Labor and Statistics)
Annual average wage
The typical cost for putting up a barbershop can range from $30,000 for a turnkey operation to about $150,000 for a new buildout. (American Barber Association)
Over the past 3 years, the U.S. barber shop industry has averaged a yearly growth of 6% to hit $1 billion in revenue.
Related Reading: 127 Mobile Barbershop Name Ideas That Aren’t Taken Yet
The state of Illinois is the highest paying state for barbers. The state’s average hourly wage for barbers is $21.53, which amounts to an annual average wage of $44,770. (Avenue Five Institute)
Successful barber shops spend roughly 8 percent of their revenue on marketing. (American Barber Association)
Locations with a higher-income such as the metropolitan California area has average price for a haircut of $28 – $30 for a basic hair cutting service.
Booth rental monthly fees can range from $200 to over $1200 per month, depending on the location and facilities. (American Barber Association)