Indoor Tanning: ’08 State Of The Industry Report

Tanning critics will continue to target our industry; however, they can be countered largely by the mounting studies favoring sensible, moderate and responsible exposure to light in a controlled atmosphere. The ITA and salon operators are doing their best to fight state tanning legislations, but they need the help of other salon owners willing to step up to the plate and help at the local level.

’08 U.S. Market Review

In the late 1970s, many naysayers labeled the indoor tanning industry a fad—something that would peak and fade in a few years. Thirty years later, the U.S. indoor tanning industry is generating $5 billion annually through the provision of controlled tanning sessions to more than 30 million Americans.

Statistics indicate there are roughly 20,000 professional indoor-tanning salons and another 15,000 to 20,000 locations—such as health clubs, spas, video stores and beauty salons—that house one or two tanning units. In keeping with tradition, the Midwest and Southeast have the highest number of tanning salons per capita, with Ohio, North Carolina, Michigan, South Carolina, Illinois, Indiana and Florida leading the charge.

The majority of U.S. indoor-tanning facilities are small businesses, and more than 50 percent of them have female ownership (compared to 25 percent of businesses in other industries, according to the U.S. Census). Indoor tanning also provides jobs for approximately 160,000 employees annually.

Today’s salon owner is a professional with a long-term commitment to the future of the tanning industry. Statistics support that the average salon has been in business for about 10 years; however, though some salons have experienced a turnover in ownership. The majority of growth is from individuals staying in the business longer, which equates to more maturity, experience and stability.

The majority of freestanding tanning salons have at least 10 rooms on average; of those, most have four to five levels of tanning and a sunless unit. In fact, 37 percent of salons surveyed for our the 2008 Top 250 Salons issue reported having at least five levels of tanning services, while only 2 percent had one level of tanning. A typical 10-unit salon may feature one big bed, two mid-range or premium beds, a UV standup, five entry-level beds and a sunless unit. Survey statistics reveal that 63 percent of salons reported an average single-session price of $7 or more; only 3 percent charged $5 or less.

Salons surveyed reported that the busiest days of the week were Monday (53 percent), Thursday (26 percent) and Friday (19 percent). The busiest months of the year remained the old mainstays of February (22 percent), March (47 percent), April (51 percent), May (68 percent), and June (22 percent). JASON rounded out the pack.

Lotion sales continued to shift to the mid-range price-points with 86 percent of salons reporting that lotion income accounted for 10 percent to 30 percent of their monthly revenues. This number is up from 80 percent last year. Only 11 percent of salons reported that lotions accounted for 30 percent or more of monthly revenues. This number was down from 46 percent two years ago and confirms the fact that consumers are looking for more affordable deals. However, only 3 percent of salons reported that lotion sales accounted for less than 10 percent. This is good news as it means more salon operators are educating their customers about the value of professional skincare products.