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Every year brings a fresh wave of viral moments and must-have treatments that redefine the beauty industry. But it’s not the latest beauty crazes which categorize the most successful beauty businesses (sure, they can help). It’s how business owners apply their creativity to innovate, find operational efficiencies, and improve the client experience — even in the face of economic headwinds.
To uncover the biggest shifts shaping the industry, we surveyed 2,000 beauty business owners and managers across the United States, Canada, the United Kingdom, and Australia to understand their challenges and plans for the year. We also surveyed 4,000 consumers to understand their spending habits and service expectations. We discovered that while consumers have trimmed their spending in retail and restaurant purchases, they continue to prioritize beauty services and wellness routines. In response, beauty business owners are embracing new revenue streams, enhancing loyalty programs, integrating technology, and refining their client experiences.
Whether you own a cosmetics brand, sell skin care products and services, or run a hair salon franchise, this list of the top trends in the beauty industry will help give you a leg up in 2025 and beyond. For a more in-depth look at these 2025 beauty industry trends, download the full 2025 Future of Beauty report.
Beauty leaders are embracing the upsell, and clients are saying yes
Raising prices may feel risky, but for many beauty professionals, it is becoming a necessity. With operating costs rising and wage laws tightening, 71% of beauty business owners report that they plan to increase their prices this year. However, instead of simply charging more for the same services, beauty leaders are strategically diversifying and increasing their revenue through upsells, retail offerings, and service enhancements.
Consumers are more receptive to these changes than one might expect. In fact, 55% of consumers said they regularly purchase products recommended by their service provider, and 46% reported buying retail items from a local beauty business at least once in the past year. That means your clients are already primed to spend more if you offer the right products and services.
Braden Heckman, operations manager at The Beautiful Co. Hair & Lashes, has seen firsthand how offering retail products drives both profits and new business. “Offering retail products has not only helped boost profits, but it also attracts new customers who come in just to browse,” Heckman said. The business relies on tools like Square for Retail to manage about 100 SKUs of retail products.
Knowing all that Square knows about how that inventory is churning, and then how much we have on order, and then taking their suggestion and being able to tweak that to what we know is coming up … it makes it really quick.”
Braden Heckman → Operations Manager at The Beautiful Co. Hair & Lashes
Introducing strategic upsells can help you create a stronger, more resilient business. Clients are more likely to say yes to an upgrade if it enhances their experience rather than feeling like an unnecessary add-on.
Memberships and subscriptions are reshaping client retention
The idea of prepaid beauty memberships isn’t new, but in 2025 it is evolving from an occasional perk to a core business model. Eighty-five percent of beauty leaders report that memberships and subscriptions provide a positive return on investment, and 34% have already implemented them in their businesses.
Memberships offer clients a sense of exclusivity and convenience while giving beauty businesses a reliable source of recurring revenue. Imagine starting each month with a guaranteed percentage of your revenue already locked in. Whether it is a blowout membership, a monthly facial plan, or a VIP skin care subscription, these programs keep clients engaged and committed to long-term self-care.
If you’re still hesitant, consumer feedback may give you some reassurance. Eighteen percent of consumers expressed interest in beauty memberships, with another 13% saying they would consider paying for online tutorials created by a beauty business. These are sizeable opportunities waiting to be tapped. If your business has a loyal client base, a well-structured membership program could be the key to predictable, scalable growth.
When it comes to managing subscriptions, automation is essential. The last thing you want is to spend more time tracking memberships than serving clients. Tools like Square Subscriptions streamline billing and payments, ensuring a seamless experience for both your business and your customers.
Technology is a beauty business essential, but only if integrated correctly
Technology is no longer just about booking software. It has become an essential part of daily business operations for many beauty business owners. More than a third of business owners said they use automation to save time when it comes to tasks like marketing content creation and automated staff scheduling. Artificial intelligence is also gaining ground, as more than 40% said they use artificial intelligence to analyze sales trends, to manage inventory, and to automate marketing.
Consumer feedback shows that while businesses are on the right track, they also need to find the right balance. For example, while younger clients embrace mobile booking, automated checkouts, and AI-driven recommendations, older generations still prefer a human touch. Business owners who blend automation with personalized service will see the biggest benefits.
Christine Barber, owner of Cosmetic Injectables by Christine, describes how digital booking transformed her business: “Square Appointments looks after itself. Once you have your appointment options and durations entered, the patients are able to book and cancel at any time, day or night. Interestingly, many of my appointments are made after hours, when people have the time and means to make the online booking. This gives me time back to focus on my patients.”
If your booking process still requires manual follow-ups, now is the time to streamline it. Investing in an integrated system that manages appointments, payments, and client history ensures efficiency without sacrificing the client experience.
Beauty training is moving online
Education has always been a pillar of the beauty industry, but the way professionals learn is evolving. Forty-seven percent of beauty leaders said that social media tutorials have become the most important training tool for their employees. While in-person workshops and certifications remain valuable, digital learning offers flexibility and real-time access to industry trends.
For salon owners and independent stylists, investing in continuous education isn’t just about skill-building; it’s about staying competitive. Online tutorials and self-paced training platforms allow professionals to learn on demand, keeping them ahead of new techniques and treatments. Beauty leaders who prioritize staff development will create more skilled, adaptable teams that can meet evolving client expectations.
Social media still reigns, but email is making a comeback
Social media remains a powerful marketing tool, with 84% of beauty leaders stating that platforms like Instagram and TikTok drive business growth. However, email marketing is quietly regaining its importance, with 63% of consumers who said they prefer to receive updates and promotions via email rather than social media.
For beauty business owners, this means rethinking the marketing mix. While social media is great for showcasing transformations and engaging with new audiences, email is where client relationships are nurtured. Personalized appointment reminders, exclusive discounts, and educational newsletters are proving to be highly effective in keeping clients engaged.
Rachel Dang of Urban Nail Box has seen impressive results with targeted email campaigns. “My goal is for our email newsletters to never feel like marketing,” Dang said. “Clients like to hear about what’s new with Urban Nail Box and the team. We also include services that are trending at that time of year and encourage clients to prioritize self-care. We have over 15,000 contacts in Square, and our emails get open rates above 50%.”
If you have been relying solely on social media to communicate with clients, it may be time to rethink your approach. The inbox is an underrated but highly effective place to build loyalty and drive bookings. Tools like Square Marketing integrate seamlessly with your booking system and client database, allowing you to send automated appointment reminders, follow-up messages, and targeted promotions with ease. By combining the immediacy of social media with the personalized touch of email, you can create a well-rounded marketing strategy that keeps clients engaged on multiple fronts.
Payment flexibility is nonnegotiable for clients
Consumers now expect frictionless, tech-driven payment options at their favorite beauty places. While traditional cash payments still have their place, digital payment methods like mobile wallets and Tap to Pay are becoming the norm. Eighty-nine percent of beauty leaders said mobile payments are the most convenient option for their business, and 59% of consumers said they are unlikely to return to a salon that does not offer flexible payment options.
The rising popularity of buy-now, pay-later services is another major shift, particularly among younger clients. For salons offering high-ticket treatments like hair extensions or laser services, buy now, pay later can make premium services more accessible. Businesses that embrace seamless, modern payment solutions will improve both the client experience and their bottom lines.
Loyalty programs are a game-changer for repeat business
Loyalty programs are no longer optional. They are a necessity for beauty businesses looking to retain clients and increase revenue. Seventy-nine percent of beauty leaders have already implemented some form of a loyalty or rewards program, and 81% plan to invest more in them this year. Businesses with loyalty programs said it has helped to drive key business metrics, like repeat visits, increased spend, and positive ROI.
Beauty clients are in favor of loyalty programs too. Eighty-four percent said exclusive discounts are the most valuable part of a loyalty program, followed closely by the ability to earn rewards (83%) and personalized experiences (69%).
Rachel Dang has used personalization and targeted marketing to grow Urban Nail Box to $1.5 million in annual revenue. “An exceptional experience at the salon is part of our identity at Urban Nail Box,” Dang said. Her team keeps detailed notes on each client and their preferences, allowing them to deliver a highly personalized in-salon experience.
If you don’t yet have a structured loyalty program, now is the time to create one. A whopping 97% of beauty businesses that don’t have a rewards or loyalty program have plans to add one soon. Without a loyalty program, you may be driving customers straight to competitors who do.
Build a thriving beauty business
The beauty industry is shifting toward a future that prioritizes client experience, convenience, and loyalty. From memberships and tech integrations to evolving payment preferences and digital training, beauty business owners must stay adaptable to thrive. The businesses that embrace these changes while maintaining a personal, human touch will be the ones that succeed in 2025 and beyond.
