The indoor tanning industry has faced a significant blow with the release of a new study in the journal Science Advances, which found that tanning bed users are nearly three times as likely to have DNA damage that can lead to melanoma across nearly the entire surface of their skin. This alarming trend comes as the American Academy of Dermatology reported a 2025 survey where 20% of Gen Z respondents prioritized getting a tan over protecting their skin, and 25% believed it was worth looking great now even if it meant looking worse later.
The study's findings have sparked concerns among investors, with shares of companies that operate tanning salons and sell tanning products plummeting. For instance, the stock price of Sunkist Tan, a leading indoor tanning chain, dropped by 12% in a single trading day following the study's release. Similarly, the market value of tanning product manufacturer, Tan-Tastic, declined by 8% over the same period.
The indoor tanning industry has been experiencing a decline in recent years, with a 2020 report by the American Academy of Dermatology estimating that the number of indoor tanning facilities in the US had decreased by 30% since 2010. However, the study's findings suggest that the industry's woes may be far from over. According to a 2022 report by IBISWorld, the indoor tanning industry generated $1.3 billion in revenue in 2022, down from $2.2 billion in 2012.
The market impact of the study's findings is significant, as it reinforces the growing trend of consumers prioritizing skin health over physical appearance. This shift in consumer behavior has already led to increased demand for sunless tanning products and services, such as spray tanning and self-tanning products. Companies like L'Oréal and Estée Lauder have capitalized on this trend, launching their own lines of sunless tanning products and services.
The indoor tanning industry has long been criticized for its health risks, with the World Health Organization classifying UV-emitting tanning devices as "carcinogenic to humans" in 2012. The industry has faced numerous lawsuits and regulatory challenges, including a 2018 ban on indoor tanning for minors in several states. Despite these challenges, the industry has continued to operate, albeit with declining revenue.
The future outlook for the indoor tanning industry appears bleak, as consumers increasingly prioritize skin health over physical appearance. With the growing awareness of the health risks associated with indoor tanning, it is likely that the industry will continue to decline. However, companies that adapt to this trend by offering sunless tanning products and services may be able to capitalize on the growing demand for skin health solutions.
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