The global beauty industry may still be worth a huge $441 billion, but it's no longer growing as much as it once did.
According to the new State of Fashion: Beauty report by The Business of Fashion and strategy and management consulting firm McKinsey & Company, clients are being more careful with their money, and they want to see real results from every product and treatment.
From 2022 to 2024, the beauty market grew by 7% per year, but the report found that’s now predicted to slow to 5% a year until 2030.
While that’s still strong, salons and therapists are under more pressure to show value, especially with so many clients cutting back on “non-essentials”.
What beauty professionals need to know
1. Clients expect more than pretty packaging
Today’s clients are doing their research, and they’re not as easily swayed by luxury branding or celebrity founders.
In fact, the report found that 63% of people say expensive products don’t necessarily perform better than budget ones.
This means beauty therapists need to confidently explain why their treatments work.
Whether you specialise in facials, massage or waxing, you’ll win trust by focusing on results, client education and visible benefits.
Share before-and-afters, explain your ingredients and keep the science simple but clear.
2. Value is key – but that doesn’t always mean cheap
The top reason clients are switching beauty brands? They want better value for money.
That doesn’t mean they’ll always go for the cheapest option; they just want to feel like their spend is worth it.
Tips for showing value in your salon or treatment room:
- Offer mini versions of facials or body treatments for new clients to try.
- Add value with aftercare advice, homecare samples or loyalty rewards.
- Break up bigger packages into smaller, flexible options.
3. Growth areas: wellness, skin health and spa experiences
The definition of beauty is expanding, and many clients now see wellness as part of their beauty routine.
The report says demand is rising for treatments that focus on stress relief, skin health and visible results, especially in:
- Spa and massage services: 34% of people globally use spa services regularly, and more are interested.
- Beauty supplements: 41% of people are either using or interested in skin, hair and nail supplements.
- Sun care and aftercare: With more awareness of skin damage, this is a retail category to watch.
As a therapist, this means more opportunities to upsell holistic services and offer product advice that links beauty with wellbeing.
4. Clients are changing how they discover and buy
Even though clients love shopping online, the report found that in-person visits are still the most popular way to discover beauty products.
That means you, as a therapist, are in a perfect position to recommend what works best, especially if your retail shelves feature hard-to-find or exclusive ranges.
That said, the way clients hear about products is shifting:
- Influencers are losing power.
- Clients want honest, expert recommendations.
- Fast-growing brands are using TikTok and Amazon, but that doesn't replace real-world trust.
Use your expertise and build a stronger connection by sharing tips in-person and online. Think: Instagram reels, client tutorials or skin education evenings.
What this means for your business in 2025
According to the report, 75% of beauty industry leaders believe perceived value is the most important factor in staying competitive.
It’s not about racing to the bottom on price, it’s about showing why your treatment, technique and product choice are worth it.
Key tips for staying ahead
- Focus on visible results and treatments backed by science.
- Offer flexible pricing and value-packed services.
- Tailor your services for your local market – different regions have very different needs.
- Share your story – clients still value personal connection and real expertise.
- Don’t rely on hype – make sure your treatments and products deliver.
(1).webp)