Global Spa Market to Exceed USD 130 Billion by 2020
According to the market research study titled ‘Global Spa Market 2016-2020’ released by Technavio firm. The report segments the global spa market by type and can be divided into five broad categories with details as followings:
1. Global day/club spa market
This market segment is expected to exceed USD 20 billion by 2020, growing at a CAGR of over 5%.
Saunas, pools, and steam rooms are the facilities that find the highest demand among customers. According to Brijesh Kumar Choubey, lead analyst at Technavio for general retail goods and servicesresearch, “Rising disposable income, particularly among the growing middle class population is an important contributing factor for the growth of the market.”
2. Global hotel/resort spa market
This likely to reach USD 39 billion, growing at a CAGR of over 8%. Hotel spas are increasingly becoming a key source of revenue for hotels. Spas in urban hotels have enjoyed stronger growth rates than resort-based spas. Massage services continue to generate the highest revenues for hotel spas.
The acquisition of skilled labor is an important aspect for these spas. However, labor costs are also very high, accounting for nearly 55%-60% of the total revenue of these spas.
“Favorable economic conditions, growth in tourism, and boom in the hotel industry will help the growth of this spa segment,” says Brijesh.
3. Global destination spa market
This is likely to reach USD 15 billion, growing at a CAGR of almost 9%.
Backed by improving economic conditions worldwide, the destination spa segment is poised for significant growth over the next five years. Customers look for personalized and immersive wellness in this segment. Wellness tourists are the primary customers for destination spas, with approximately 15% of them visiting these spas during their trips.
4.Global medical spa market
This is likely to reach USD 10 billion, growing at a CAGR of 9%.
Medical wellness spas are gaining popularity worldwide, urged on by the growth of medical tourism. Microdermabrasion, botox, and dermal filling are some of the services most commonly requested by clients. Technological advancement is also playing a major role in driving this segment. For instance, the diamond microdermabrasion peel machines with LED Bio face lift technology and Baby Quasar's Plus Red Light therapy, which allow technicians to treat specific areas effectively.
5. Global other spas market
The global other spas market as thermal/mineral spring spas is likely to reach USD 14 billion, growing at a CAGR of over 9%.
The growth in tourism worldwide with subsequent interest in nature-based experiences is a major driver for this market. Vendors are investing significantly to build new resorts and recreational facilities around therapeutic springs. Many countries are marketing their thermal/mineral springs primarily to attract the wellness tourism sector.
A number of thermal/mineral springs are located in Europe and Asia. China and Japan are the top leading countries in this segment. Spa services at thermal/mineral springs represent a significant amount of revenue to the market. In addition to bathing, spa treatments such as facials, massages, and hydrotherapy contribute significantly to the growth of the market.