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Beauty and wellness businesses have always been quick to adapt. New trends, new technologies, shifting customer expectations – business owners in this sector understand the importance of both resilience and reinvention.
Those qualities matter now more than ever. On the surface, trading conditions remain relatively steady. Inflation has edged up, and prices across hairdressing and personal grooming services have followed, rising by 3.9 per cent year on year. But the recent spike in petrol prices dented consumer confidence – and for a category that depends on discretionary spend, that matters.
“When household budgets tighten, beauty and wellness businesses tend to feel the impact earlier and more sharply than many other sectors,” says Skye Cappuccio of the Council of Small Business Organisations Association (COSBOA). “Many small business owners are absorbing those costs personally rather than passing them on.”
Fewer visits, higher expectations
Many beauty, hair and wellness businesses are already seeing a shift in customer behaviour, adds Inside Industry CEO Tamara Reid. “Where clients were once returning every four to six weeks, that gap has extended to eight to ten.”
But there’s still opportunity. “This industry has always been a safe space during hard times,” Reid says. “It’s where people go to feel lighter, to be looked after. The sentiment across the industry is still one of hope.”
Experience is more important than ever, she adds. “The opportunity right now is to make every visit count. When a client leaves your salon, they should feel so relaxed, so renewed, that waiting ten weeks feels too long. Exceptional service is what closes that gap.”
What’s trending in beauty and wellness…
Client expectations are shifting fast. Discover what’s shaping the category, from new treatments to new growth opportunities.
Red-light therapy bright
The popularity of LED-light therapy is showing no signs of fading. Appointments for red-light therapy grew by 131 per cent across Australia, the US and UK according to global booking platform Fresha. The surge comes as clinics compete against a growing at-home market, with L’Oreal recently announcing it will launch its first range of red-light devices in 2027.
The wellness tourism effect
While loyal locals may anchor most salons’ calendar, travellers are becoming a powerful growth lever. Wellness tourism is booming, driven by consumers who want more from their time away – not just rest, but measurable wellbeing.
According to Global Wellness Institute, wellness tourism is predicted to surpass $1.3 trillion by 2027, growing 27 per cent faster than the broader tourism market. For spas and salons that presents a growth opportunity.
A biohacking boost
Biohacking has moved firmly into the commercial mainstream. Across Australia, a growing number of clinics are introducing high-ticket diagnostics and longevity-led services, such as full-body diagnostic scans priced between $3,000 and $6,000, or updating their treatment menus to include ingredients like NAD+ and peptides. Globally, the biohacking industry is predicted to be worth $111billion by 2034.
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