New data confirms what many clinics are already seeing in real-time: Australian beauty consumers are educated, intentional, and still spending—if you give them a reason to.
The Q1 2025 Professional Hair & Beauty Industry Report, developed by Inside Industry with data from Phorest, Timely, and Aglow, reveals how beauty businesses are performing, and where they’re heading. From client spending and treatment trends to rebooking habits and membership models, it’s a data-driven pulse check for professionals ready to grow, adapt, and stay ahead.
Clients Are Still Spending (They’re Just Smarter About It)
Consumer spending rose 3.1% year-on-year, with 87% of Australians actively budgeting for their treatments. Clients are seeking value and visible results, and they’re doing their homework. Search interest in terms like “microneedling” and “skin clinic near me” is rising, with more people now looking for specific treatments or brands, not just generic beauty services. It’s a clear sign that client knowledge, and expectations, are increasing.
Memberships And Rebooking Are Reshaping Client Behaviour
More than half of consumers say they’d book treatments more regularly if flexible payments and perks were involved. With prepaid memberships, 89% are more likely to purchase additional services or retail products. Meanwhile, rebooking rates are on the rise, and time between visits is shrinking. The takeaway? Structure matters. From treatment plans to memberships, clients want a roadmap and are willing to follow it.
Retail Is Still A Missed Opportunity For Many
Clients are hungry for education and trusted product advice. While some clinics are seeing over 20% of revenue come from retail sales, the industry average still hovers around 6–7%. Clinics that build retail into the treatment conversation are seeing stronger results.
Seasonal Trends Still Play A Big Role
‘Resolutioners’ made January the busiest month of the quarter, followed by a clear drop in February. Historically, December is the highest-performing month, while June is the quietest. Clinics that align promotions, rosters, and re-engagement strategies with these seasonal patterns will be better positioned to manage cash flow and capacity.
Openings Are Slowing, But So Are Closures
Q1 saw a modest 0.5% net growth in beauty business openings with many major franchises paused expansion or closed underperforming sites. While it’s not a boom, it reflects cautious confidence across the sector. The industry may be entering a consolidation phase, with operators prioritising sustainability over scale.
The Report Notes A Few Crucial Watchpoints
The second quarter of 2025 is expected to continue steadily, with growth likely to remain positive, provided clinics adapt to shifting consumer expectations.
Inflation is still a risk to discretionary spending, labour shortages, particularly in wellness roles, remain a concern, and the rise of at-home devices and AI integration means therapists should be equipped to answer out-of-the-box client questions.
Looking ahead, this data tells us that the future belongs to businesses that blend technical expertise with long-term planning, and a genuine client-first approach.
The full report is available via Inside Industry at www.insideindustry.co.
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