Los Angeles, CA (PRWEB) June 29, 2012
In the five years to 2012, revenue for the Tanning Salon Franchises industry declined at an average annual rate of 1.1% to an estimated $ 1.5 billion. Reduced disposable income and heightened unemployment during the recession and slow recovery period prompted a greater number of consumers to forgo regular tanning sessions and instead opt for natural methods or home-use tanning lotions. As a result, revenue for the Tanning Salon Franchises industry contracted steadily from 2008 to 2010, with its greatest decline in 2009, when revenue fell 5.1%, according to IBISWorld industry analyst Caitlin Moldvay. In the years since 2010, the Tanning Salon Franchises industry has begun to recover, aided by improving economic conditions and rising consumer demand for sunless tanning options. In 2012, industry revenue is expected to rise 2.1%.
Over the past decade, growth among tanning salon franchises has outpaced the Tanning Salons industry as a whole, Moldvay says. Prominent franchisors such as Palm Beach Tan have expanded to become a national presence, with franchisees benefiting from enhanced brand name recognition and often discounted start-up costs. The industry is highly fragmented and most tanning salons serve their immediate geographic locations. The industry has, however, had to contend with rising statewide regulations aimed at limiting or banning adolescent use of tanning beds. In 2012, Vermont became the second state to prohibit adolescent use of tanning beds. Moreover, another hot button issue has been the 2010 implementation of the tanning tax, which places a 10.0% tax on the use of tanning bed and booth use.
Over the next five years, the Tanning Salon Franchises industry will benefit from improving per capita disposable income growth, which will foster greater spending on discretionary expenditures such as indoor tanning. From 2012 to 2017, industry revenue is forecast to rise. Moreover, tanning salons are expected to increasingly expand their array of service offerings by diversifying into day spa services and capturing a wider consumer base that includes those who do not regularly use indoor tanning. However, industry growth will likely be mitigated by consumer health concerns about excessive UV exposure and further statewide regulations limiting adolescent use of tanning, which will continue to adversely affect demand for tanning beds. For more information, visit IBISWorlds Tanning Salon Franchises in the US industry report page.
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IBISWorld industry Report Key Topics
This industry includes franchised establishments that provide indoor tanning services, such as UV tanning beds and booths and spray-on tanning. Industry operators often sell tanning-related merchandise, including swimwear and tanning lotion.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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