The State of the Australian Salon Industry in 2025
From wage growth to the rise of walk-in culture, here is what is shaping the Australian salon industry this year.
The Australian hair and beauty industry employs over 100,000 people and generates more than $4 billion in annual revenue. Here is what the current landscape looks like for salon owners.
Labour Is the Biggest Pressure
Minimum wage increases and the ongoing shortage of qualified hairdressers and beauty therapists are the top financial pressure for salon owners. Apprenticeship numbers have not recovered to pre-pandemic levels, and competition for experienced stylists is intense.
The response: salons are investing more in retention — better rosters, commission structures, and tools that make the job easier, including software that reduces admin so staff can focus on clients.
Walk-In Culture Is Growing
Younger clients in particular are less likely to book weeks in advance. The expectation of same-day or next-day availability is increasing, especially in metro areas. Salons that can accommodate walk-ins efficiently — through kiosks, QR check-in, and real-time queue management — have a competitive advantage.
Online Booking Is Now Table Stakes
In 2020, having an online booking option was a nice-to-have. In 2025, the majority of new client bookings happen online, and clients who cannot easily book online are more likely to move on than pick up the phone.
Google's integration of booking buttons directly into business profiles has accelerated this. Salons without a bookable link on their Google profile are missing a significant portion of new client discovery.
Loyalty Programs Are Rebounding
After a period where many salons dropped loyalty programs during the cost pressures of 2022–23, loyalty is back. Digital loyalty programs that do not require physical cards are seeing strong adoption, particularly among clients aged 25–45.
What This Means for Your Business
The salons growing fastest in 2025 share common traits: they handle both walk-ins and bookings, they have a digital loyalty program, they use automated SMS reminders, and they are making decisions based on data rather than intuition. These are not advantages that require a large team or a large budget — they require the right tools.