In the United States, the popularity of tattoos and body art has recently surged, especially among Millennials and Generation Z, fueling an industry of 11,600 tattoo studios. The industry, which includes tattoo removal services, is worth $4.5 billion and growing strongly.
It is a fragmented market consisting of many small privately owned businesses (studios) with high profit margins but low gross receipts. There are no public companies or large chains, but private equity firms have shown increased interest in this business. The business is recession-proof, but not recession-proof. The market experiences a significant boom in business immediately after major social and economic events such as the 2008 recession and the 2020 pandemic.
Top 6 things to know about tattoo parlors and the tattoo removal industry
- Marketdata estimates that market revenue will reach $4.48 billion this year. Tattoo studio revenue is $3.08 billion and tattoo removal services generate $1.86 billion.
- US tattoo studio revenue is projected to grow 7.7% annually through 2030, and the tattoo removal market is projected to grow 11% annually.
- There are roughly 52,000 tattoo artists in the United States who earn an average of $51,867 per year. Many affiliate with local tattoo shops and split their revenue 50/50 with the owner, but some stay independent and start a business at home.
- Almost a third of American adults have tattoos. Women are more likely to have tattoos than men. However, 24% of those with a tattoo regret it and may want to have it removed. Many healthcare professionals will do this for you: spas, dermatologists and plastic surgeons.
- The tattoo removal market is growing strongly: in 2019, 164,000 procedures were performed by dermatologists. Other doctors, spas, and some tattoo shops also perform procedures. The average cost is more than 1000 USD, more than 7 times. Laser equipment technology is improving, and costs will undoubtedly decrease as new and better machines come on the market.
- The tattoo studio business is easy to enter and can be profitable. You can get started for about $25,000. After a few years of building a clientele and honing their craft, most tattoo artists make $50,000 a year, and the average business profit margin after expenses is 55%.
Where to find out more
Be sure to read the new report from Marketdata to learn more US Tattoo Studios and Tattoo Removal Services: Market Analysiswhich provides an up-to-date overview of market size, consumer demographics, forecasts, operating ratios and margins, competitive profiles, etc.
About the author: It is chaired by John LaRosa Marketdata LLC and author of over 100 industry and market studies. His research appears in leading media such as ABC, CNN, Fox, Forbes, USA Today, The Wall Street Journal, The New York Timesand various trade journals.