Key Trends

  • The industry has seen a massive surge in pent-up demand with the removal of restrictions in 2021

  • The staggering rise in the popularity of body art has had a significant impact on the industry

  • As demand for tattoos has grown, so has the number of participants in the industry

  • Expanding incomes may drive greater frequency of tattoos or more customization

  • As tattoos become more common, the stigma surrounding them will continue to fade

  • The mainstreaming of tattoos will help drive greater participation in the industry

  • Demand for tattoos is driven by demographic and cultural trends rather than economic forces

— Industry at a Glance, Pg 7

Industry Performance

With each successive generation, tattoos have become more widely accepted. Today, 46.0% of Americans have at least one tattoo. Over the five years to 2021, the popularity of tattoos among millennials, nearly half of whom have been inked at least once, has driven a rapid expansion of the Tattoo Artists industry, furthering its rise from countercultural niche to big business.

— Current Performance, Pg 11

Executive Summary

Tattoo parlors generally weather downturns far better than providers of other expensive discretionary goods and services. Despite having the hallmarks of a luxury service, the fact that they entail permanent modification of the body makes industry services a spending category unto themselves. For example, one Pew Research survey found that among those deciding on a tattoo parlor, only 8.0% considered price a priority. As a result, the industry is expected to largely sustain its growth regardless of income and consumer spending trends, barring an unforeseeable and dramatic cultural shift. Furthermore, profit in this industry is high and has grown over the past five years.

— Executive Summary, Pg 9

Industry Performance

The Tattoo Artists industry is currently in the growth stage of its life cycle. Over the 10 years to 2026, industry value added, which measures the industry's contribution to the overall economy, is expected to grow at an annualized rate of 8.9%. Comparatively, GDP is anticipated to grow at an annualized rate of 2.3% over the same 10-year period. This indicates that the industry is expanding rapidly as a share of the national economy

— Indicative Industry Life Cycle, Pg 15

Executive Summary

Over the five years to 2026, industry revenue is projected to grow an annualized 7.0% to $1.9 billion. Growth in industry revenue is expected to slow relative to the previous period as the adoption of tattoos as a percentage of the population is approaching its peak. Still, revenue growth will remain strong on account of tattoos continued mainstream acceptance and strong growth in per capita disposable income. Notably, as the last regulatory prohibitions on the industry are removed, participation will likely continue to surge, and it is possible that the nature of the industry will change now that it has become a big business.

— Executive Summary, Pg 9

Body Piercing

Some tattoo parlors also offer body piercing services, which are estimated to account for 14.3% of revenue.

—Products and Markets, Pg 17