Prime Highlights
- Best-in-class digital tool users generate approximately £76,764 in additional revenue per location annually, compared to less digitally mature competitors.
- New guest visits fell 7% overall, while existing guest visits rose 4%, shifting the industry’s growth focus toward retention.
Key Facts
- Zenoti is a software provider serving the beauty and wellness industry, and published its inaugural European Benchmark Report covering 2025 performance data.
- The European beauty and wellness industry grew 7% between 2024 and 2025, though like-for-like revenue growth at existing locations was just 2%.
Background
Beauty and wellness businesses across Europe that use digital booking, automated demand management, and AI-powered customer tools are generating significantly higher revenues than less digitally mature competitors, according to new research by software provider Zenoti.
The company’s inaugural Beauty and Wellness Benchmark Report: Europe found that best-in-class users of digital features generate approximately £6,397 in additional revenue per location per month, equivalent to around £76,764 annually.
The report analysed aggregated business performance data from the 2025 calendar year across European salons, spas, and aesthetic clinics. This comparison was done through segmentation and percentile performance.
The European Beauty & Wellness sector grew by 7% from 2024 to 2025. But the same store sales growth was only 2%, and the growth had been mainly attributed to the new stores that were opening up, rather than improved performance from their existing sites.
Generally, there was a decrease in new customers by 7% but an increase in repeat customers by 4%. There was a decline in visits from new customers for salons by 9%, spas by 6%, and aesthetic clinics by 3%.
Despite the drop in new client acquisition, salons delivered the strongest organic performance across all segments, achieving 6% like-for-like growth without any net new location openings.
Sudheer Koneru, chief executive and co-founder of Zenoti, said businesses best positioned for long-term growth are those placing customer retention at the core of their operations, particularly as new client acquisition grows more challenging across the industry.
