There's no doubt that the tanning salon industry is a lucrative one. In fact, it's been estimated that the industry is worth a whopping £1 billion in the UK. But with changing attitudes and regulations around tanning, is the tanning salon industry still a good investment in 2023? Here we'll take a closer look at the industry and explore whether or not it's worth your time and money.
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The tanning salon industry has been in decline for a number of years now. In 2015, the number of tanning salons in the UK fell by 20%. This trend is likely to continue, with research from Mintel predicting that the number of tanning salons will fall by a further 9% by 2020.
There are a number of reasons for the decline of the tanning salon industry. Firstly, there's been a shift in public opinion when it comes to tanning. In recent years, there's been an increasing awareness of the dangers of sun exposure and UV radiation.
This has led many people to reconsider their attitudes towards tanning, with more people opting for fake tans or self-tanning products instead. However, many tanning salons are adapting to this shift by diversifying their offering. Spray tanning and alternative salon treatments can help to diversify income streams in your salon.
Another reason for the decline of the tanning salon industry is the cost of running a business. The cost of renting premises, buying equipment and maintaining it can be significant. The rising cost of energy will also have a significant impact on tanning salon businesses. Tanning beds are energy hungry, and these costs will need to be absorbed by the business or passed on to the customer.
In addition, there's the cost of compliance with regulations. For example, in the UK all tanning salons must be registered with their local authority and must comply with the Sunbeds (Regulation) Act 2010. This act requires businesses to take measures to protect customers from the risks associated with sunbed use, such as skin cancer.
Despite the challenges, there is still potential for a return on investment if you're thinking of opening a tanning salon. The key to success is to research the market and find a niche.
For example, some salons are now offering more than just sunbeds. They may also offer spray tans, beauty treatments and other services. These businesses tend to be more successful as they're able to attract a wider range of customers.
It's also important to target the right demographic. Despite the negative publicity surrounding sunbed use, there is still a significant market for it. In fact, research from Mintel shows that 1 in 5 people aged 16-24 have used a sunbed in the last 12 months. This suggests that there is still a high demand for sunless tanning.
There are a number of risks associated with running a tanning salon. Firstly, there's the potential for financial loss. As we've seen, the cost of running a business can be significant and there's no guarantee that you'll make a profit.
Secondly, there's the risk of reputational damage. The negative publicity surrounding sunbed use could lead to your business being associated with health risks. A simple way to counter this is to make sure you offer guidance and support to your customers to ensure they stay safe while using your services.
Finally, there's the regulatory risk. The government has introduced a number of regulations surrounding sunbed use in an attempt to reduce the health risks associated with it. This means that there's a risk that your business could be fined or shut down if you don't comply with the relevant regulations.
Despite the challenges, the tanning salon industry can still be a profitable business. The key to success is to research the market, find a niche and target the right demographic. If you can do this, you'll be in a good position to make a return on your investment.
One of the biggest benefits of running a tanning salon is the low cost of staffing. Unlike other beauty salons, you don’t need one member of staff for each customer. Instad, you can have minimal staff on site to offer advice and support. This can help to reduce the costs of running your salon and increase profit margins.
Another benefit of owning a tanning salon is the ability to diversify your offering in line with current trends. If you can stay on top of the latest trends, you can adjust your offering to make sure you are always offering the treatments and services that are in demand.