Day Spas and Tanning Salons NAICS 812199

Sep 18, 2025 - Gen Z and Millennials Drive Wellness Spending: McKinsey

• According to a report in Smart Tan Magazine, McKinsey & Company’s “2025 Future of Wellness” study reveals a transformative shift in the global wellness industry, driven by Gen Z and millennials. These younger consumers now view wellness as an essential lifestyle, not a luxury, and account for over 41% of U.S. wellness spending. Their preferences span physical, emotional, and aesthetic health, with growing interest in functional nutrition, mental well-being, and personalized treatments. Salons are uniquely positioned to capitalize on this evolution by offering integrated services such as red light therapy, skin rejuvenation, and wellness-focused retail. McKinsey identifies five consumer segments, with Maximalist Optimizers and Confident Enthusiasts, which are primarily younger demographics, representing the highest spenders. By aligning with emerging wellness trends and consumer expectations, salons can secure long-term growth and relevance in a $2 trillion industry increasingly shaped by holistic, tech-enabled, and experience-driven wellness solutions.
• The Consumer Price Index (CPI) for haircuts and other personal services, including day spas and tanning salons, increased 3.7% in August 2025 compared to a year ago, per the Bureau of Labor Statistics (BLS). Day spas have been adjusting pricing as they grapple with economic uncertainty driven in part by tariff impacts, ongoing inflation, cost-conscious consumers, and increased operational costs. According to recent BLS data, employment was on the rise for day spas and tanning salons in April 2025, while wages dropped. Employment by other personal care services grew 6.5% in July 2025 compared to a year ago. In the last decade, employment grew 51.1% in the sector, which is faster than the 13% growth in overall private employment. Average wages for the industry fell 1.5% in July 2025 year over year, reaching $24.65 an hour for nonsupervisory employees.

• Indicators measuring the collective mood of US consumers showed a downward turn, with consumer confidence and consumer sentiment levels falling. Consumer confidence levels, an indicator of discretionary expenditures, declined in August 2025, month over month, falling by 1.3 points, according to the Consumer Confidence Index. Consumer confidence levels were lower in August, but remained similar to levels in the past three months, according to The Conference Board, which publishes the monthly index. August’s loss can be attributed to consumers under 35 years old, while confidence levels rose for consumers over 55. In addition, the consumer sentiment index from the University of Michigan dropped in September 2025. The index fell to 55.4 in preliminary data for September from 58.2 in August. Year over year, the index was 21% lower than September 2024’s 70.1. Year-ahead inflation expectation results held steady monthly, as consumers convey lingering anxiety about prices amid tariff impacts. The index serves as a predictor of consumer spending as it indicates consumers’ perception of their financial prospects and the broader economy.
• US spa revenue, locations, and visits are growing, according to the annual US Spa Industry Study report results in Skin Inc. The study is commissioned by the International SPA Association (ISPA) and conducted by PwC. Overall revenue at US spas increased 5.8% in 2024 to $22.5 billion year over year. Total spa visits rose 3.1%, reaching 187 million in 2024, while the number of spa locations grew year over year 0.6% to 21,980 in 2024. The report noted that 30% of properties surveyed said they’d renovated their retail in 2024, and 25% had improved their treatment rooms. Revenue per visit also grew 2.6% year over year in 2024, reaching $120.30 in 2024. In addition, spa industry employment increased 1.6% year over year in 2024.