A new report by Professional Consultants & Resources shows hair color is driving many aspects of salon business. With $730 million in sales (based on sales from manufacturers to distributors) hair color service revenues at the salon level grew by 3.7%, as client visits increased and new hair color services for gray coverage grew, followed by fashion color services. “A major surprise is that Sally Beauty’s ION and other brands have experienced dramatic growth, making Sally the fourth largest hair color marketer, right behind L’Oréal, P&G and Goldwell. Schwarzkopf now ranks fifth,” said Cyrus Bulsara, president of Professional Consultants and Resources. Here are highlights from the study, which assessed the salon industry in 2011:

• Haircolor is projected to grow to mid-single digits by 2016.
• Salon distribution realignments have ended and all salon hair color companies are now in growth mode.
• Hair color remained the “axis service” and drove all other salon services, plus sales for hair care products.
• Demi/semi permanents grew at higher rates than permanents, indicating a new shift and changing trend.
• Crèmes and gels now completely outsell liquid hair color in the United States—a major paradigm shift.
• L’Oréal remained the traditional category leader with Matrix, Redken, L’Oréal Technique and Professionnel.
• P&G followed closely and continues its full-service growth for its Clairol, Wella and Sebastian divisions.
• Goldwell/KPSS ranked third.
• Sally’s own brands ranked fourth, overtaking Schwarzkopf, which was ranked fourth in 2010.
• New color category entrants, including Sally ION, Paul Mitchell, Joico and TIGI, continued to gain market share.
• Emerging hair color companies, including Keune, IT&LY, Davines, Alfaparf, Pravana and Aloxxi, also grew, taking market share.

To obtain electronic or hard copies, please contact Cyrus Bulsara, at cbulsara@augustmail.com or visit Professional Consultants & Resources.