How Did Self-Care Industries Perform at Start of Pandemic?

Revenue for Some Self-care Industries Were Negatively Impacted by COVID-19, Others Experienced Growth

February 13, 2023

Written by:

Adam Grundy and Kevin Mclain

Self-care — caring for oneself to promote good physical and mental health — became central to American lives after the onset of the COVID-19 pandemic in 2020.

Although self-care is not an official industry recognized by the U.S. Census Bureau, several industries included in the North American Industry Classification System (NAICS) fall into a broader self-care category.

According to the Census Bureau’s 2021 Service Annual Survey (SAS), while overall estimated Services Total revenue for employer firms decreased 1.7% from 2019 to 2020, estimated employer firm revenue for some of the service industries supporting self-care grew from 2019 to 2020.

Some self-care industries which declined in 2020, the first year of the pandemic, experienced an increase in revenue in 2021.

Most notably, estimated employer firm revenues for two mental health service industries, Offices of Mental Health Practitioners (except Physicians), and Outpatient Mental Health and Substance Abuse Centers, increased from 2019 to 2020, the SAS shows.

Some self-care industries such as Beauty Salons and Fitness and Recreational Sports Centers that required on-site participation experienced a decline in estimated employer firm revenue from 2019 to 2020.

However, estimated employer firm revenue for industries supporting mental and physical well-being, such as Veterinary Services for treating new furry companions, increased during the same time period.

Growth in Mental Health Services

Employer firms’ estimated revenue for Outpatient Mental Health and Substance Abuse Centers increased 5.2% from 2019 to 2020.

Additionally, in 2020, a year when many industries experienced a drop in revenue, estimated revenue for employer firms in the Health Care and Social Assistance sector (which includes Outpatient Mental Health and Substance Abuse Centers) increased 1.5% to $2,827.6 billion.

Offices of Mental Health Practitioners (except Physicians) earned an estimated $13.1 billion in employer firm revenue in 2020, up 14.1% from the previous year. Estimated employer firm revenue continued to grow in 2021, increasing 23.6% to $16.2 billion.

Changes to Other Select Self-Care Service Industries

Some self-care industries which declined in 2020, the first year of the pandemic, experienced an increase in revenue in 2021.

For example, employer firms’ estimated revenue for Beauty Salons dropped 26.8% from 2019 to $18.2 billion in 2020, but rebounded to $22.8 billion in 2021.

In 2020, Fitness and Recreational Sports Centers earned an estimated $25.1 billion in employer firm revenue, which increased to an estimated $31.6 billion in 2021.

But like Beauty Salons, the rise came after a double-digit percent decrease in estimated employer firm revenue in 2020. In fact, estimated employer firm revenue declined 30.3% in just one year, from $35.9 billion in 2019.

Table 1. Estimated Revenue for Employer Firms for Select U.S. Self-Care Service Industries: 2019-2021

Employer firms’ estimated revenue for Recreational Goods Rental, for example, increased 19.4% to $2.1 billion in 2021. Employer firms’ estimated revenue for Veterinary Services increased 11.0% in 2020 and 12.8% to $57.5 billion in 2021.