The beauty and wellness industry has experienced a shift in growth, with a modest 2% increase this year compared to 5% last year, signaling changes in market dynamics and consumer spending trends. Digital touchpoints, such as online booking and virtual consultations continue to enhance customer experiences. Service businesses that embrace these trends blend convenience with care to meet evolving customer preferences. Three key trends highlight strategies that beauty and wellness businesses can leverage to drive growth in 2025 and beyond. 1. Membership revenue models continue to hold their own as the steadiest source of growth. 2. Fostering customer loyalty is crucial, what with a fraction of repeat clients driving a significant portion of total revenue. 3. Center expansion drove revenue growth, continuing a trend noted in last year’s report. Although the industry grew by 2%, brands that focused on adding locations saw a 5% increase, reinforcing the ongoing impact of expansion on revenue growth. This report serves as a key resource for beauty and wellness brands, helping them understand consumer trends, check business performance against benchmarks, and identify tactics and technologies to drive success and support overall growth. INTRODUCTION 01