Tanning Salon Business Overview

A tanning salon provides indoor tanning services to customers seeking a darker skin tone without relying on natural sunlight. These businesses offer controlled UV exposure through specialized equipment and alternative tanning methods like spray tans. Most salons maintain a clean, welcoming environment with private rooms for each tanning unit, changing areas, and product displays.

The daily operations involve scheduling appointments, maintaining equipment, cleaning facilities, advising customers on tanning options, selling tanning-related products, and ensuring compliance with safety regulations. Staff members typically include front desk personnel who manage bookings and payments and certified tanning consultants who guide customers through the tanning process.

Business models in the tanning salon industry include:

• Single Service Salon: Specializes in one type of tanning service, typically UV bed tanning or spray tanning exclusively. These locations often maintain 3-5 tanning beds or booths.
• Full-Service Tanning Center: These locations typically offer both UV and spray tanning options, allowing customers to choose their preferred method. They typically feature multiple types of tanning beds and spray tan booths.
• Franchise Location: Operates under an established brand name like Palm Beach Tan, following standardized procedures and benefiting from corporate support systems. Franchises often provide both UV and spray tanning services.
• Mobile Tanning Service: This service focuses on spray tanning and bringing equipment to clients’ homes or offices. This model eliminates the need for a permanent retail location.
• Spa/Salon Hybrid: This type of business combines tanning services with other beauty treatments, such as hair styling, nail services, or massage therapy. These businesses offer tanning as part of a broader beauty and wellness menu.

Industry Statistics

The tanning salon industry operates under NAICS code 812199, providing indoor tanning services through both UV beds and spray tanning equipment. The following statistics demonstrate the current state and trajectory of the industry.

Tanning Salon Industry Size & Growth: The tanning salon industry currently generates $1.2 billion in revenue. The industry has experienced a decline, with revenue decreasing by 5.4% annually over the past five years. However, 2024 shows signs of improvement, with a projected increase of 1.4%. This recent upturn suggests potential stabilization as businesses adapt their services to changing consumer preferences. (IBISWorld)

Number of Tanning Salons: There are 19,971 tanning salon businesses operating across the country, showing an 11.9% annual decrease from 2019 to 2024. Palm Beach Tan Inc. stands as the largest company in the industry, with a 77.5% market share among major operators. The presence of franchises has led to increased market concentration in certain geographic areas. (IBISWorld)

Typical Tanning Salon Revenues: The average tanning salon generates approximately $60,000 in annual revenue based on total industry revenue and the number of establishments. However, this figure varies significantly based on location, services, and business model.

Tanning Salon Average Profit Margin: Palm Beach Tan Inc., the industry leader, maintains a profit margin of 9.6%, suggesting that well-established businesses can achieve stable profitability. Individual salon profit margins vary based on factors such as operational efficiency, service mix, and local competition. (IBISWorld)

States with Most Tanning Salons: Despite abundant natural sunlight, the Southeast region hosts over 25% of all tanning salons. This distribution indicates that population density and consumer demographics influence business location more significantly than climate conditions (U.S. Census Bureau). The concentration of salons follows general population patterns rather than weather patterns, demonstrating consistent demand across various geographic regions.

Also See: Ideas for Naming a Tanning Salon

How Much Does It Cost To Start a Tanning Salon?

Opening a tanning salon typically requires between $100,000 and $500,000, with costs varying based on location, size, and business model chosen. The largest expenses come from purchasing tanning equipment and securing a suitable commercial space.

The initial investment includes tanning beds, which range from basic models to high-end units with advanced features. Multiple beds are needed to serve different customer preferences and maintain a steady service flow. UV tanning beds represent the highest equipment cost, while spray tanning booths provide a lower-cost alternative.

Commercial space requirements include enough room for private tanning rooms, reception area, changing facilities, and product display areas. Location costs vary significantly based on the area’s real estate market and whether the space needs renovations to accommodate tanning equipment.

Additional startup expenses include:

Business licensing and permits are required, and tanning facilities must comply with local and state regulations. Insurance coverage, including liability insurance specific to tanning services, is also required.

Initial inventory of tanning products, protective eyewear, and cleaning supplies needs to be stocked before opening. This includes lotions, protective goggles, sanitizing products, and retail items for sale.

Interior renovations often involve installing proper ventilation systems, electrical upgrades to support multiple tanning beds, and creating individual rooms with appropriate privacy measures.

Point-of-sale systems, scheduling software, and basic office equipment are needed for daily operations. This technology helps manage customer appointments, track member usage, and process payments.

Marketing materials and signage, including physical signage and digital marketing assets, help establish the business presence and attract initial customers.

Additional costs for franchises include franchise fees and mandatory training programs. While these increase initial investment, they provide established business systems and brand recognition.