Spa Market (By Service Type: Hotel/Resorts Spa, Destination Spa, Day/Salon Spa, Medical Spa, Mineral Spring Spa, Others) - Global Industry Analysis, Market Size, Opportunities and Forecast 2021 - 2028

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The global spa market is expected to grow at a CAGR of around 13.2% from 2021 to 2028 and expected to reach the market value of around US$ 167.8 Bn by 2028.

The term spa refers to a wide range of services and experiences that can range from a small facial and massage business to a large-scale pampering destination. According to an ASEAN report, the spa industry has grown rapidly over the years, with some countries experiencing annual growth rates of up to 20%, and it has achieved remarkable status in the tourism industry. Furthermore, spas provide a holistic and healthy approach to wellness through the use of cutting-edge technology and treatments.

Market Insider

Medical spa: A new trend

According to the ISO report, spas used to be all about manicures, pedicures, massages, therapeutic massage to Eastern inspired Ayurveda massage, hot stone massage, and many more. Today, the industry has evolved alongside the menu of therapies and treatments. A paradigm shift toward wellness and well-being occurred. According to a report released in 2018 by the Global Wellness Economy Monitor, the global wellness industry is now worth US$4.2 trillion. Furthermore, the report reveals that the average medical spa earns approximately US$1 Mn per year. Apart from that, the most important factor for medical spas that meet the standard requirement is a cost reduction due to process improvements, as well as more reliable and higher-quality services. This serves as a stand-alone factor for any spa seeking consumer trust and a first-mover advantage.

Rising tourism sector fuel the growth of global spa market

According to the GLOBAL WELLNESS INSTITUTE's report, the wellness tourism economy is much larger than a narrowly defined set of typical wellness businesses such as spas, wellness retreats, thermal/mineral springs, and boot camps. Wellness travellers (particularly secondary wellness travelers) are looking to continue their wellness lifestyle while travelling, and this lifestyle includes healthy eating, exercise/fitness routine, natural experiences, and others. Apart from that, health retreats and spas have been rapidly growing in the tourism sector, where traditional remedial therapies are widely available. People are looking for an escape from work-related stress, and they are realizing the long-term benefits of taking care of themselves, which is driving the growth of the spa market. Spa destinations and activities are also among the fastest growing segments of wellness tourism among wellness travelers. According to GWI, there were over 149,000 spas worldwide in 2017, earning US$93.6 Bn in revenue and employing nearly 2.5 million people. From 2015 to 2017, the segment grew at a 9.9% annual rate and is expected to reach US$128 Bn by 2022.

Rising hotel chains globally fuel the growth of global spa market

Revenue at urban hotel spas increased by 6.5% in 2017 compared to previous years, according to a Hospitality Net report. This is higher than the 3.1 percent increase seen in resort spas. Spa revenues at resort hotels accounted for 3.5% of total hotel revenue in the same year. Furthermore, spa revenue accounted for 3.1% of total revenue recorded at urban hotels in 2017. Capturing customers from local markets, rather than just hotel guests, is one of the key reasons that urban hotel spas can generate significant levels of revenue. Local residents and members accounted for 59% of spa department revenue at urban hotels in 2017. As access to wellness services becomes more common in residential communities and workplaces, guests will expect hotels to provide similar services. As a result, hotels can profit from their spa and wellness services by taking advantage of the lucrative opportunity to increase revenues and profits. As a result, the value of hotels for owners and operators will rise.

Market Segmentation

The global spa market is segmented by service type. Service type is segmented as hotel/resorts spa, destination spa, day/salon spa, medical spa, mineral spring spa, and others

Based on service type, the hotels/resort spa segment dominates the market with a significant share and will continue to do so throughout the forecast period. As hotel spas are more efficient at capturing revenue than resort counterparts. In 2017, hotel spas generated US$226.5 in revenue per square foot, while resort spas generated US$180.2. The efficient use of space is especially important for hotels, where land is scarce and development costs are significantly higher. Furthermore, hotel spa or resort spa customers spend slightly more on treatment (US$164.7), fostering segmental growth and, as a result, contributing to the overall market growth.

Regional Overview

Asia Pacific registers largest revenue share; Europe records fastest growing CAGR for spa market

Asia Pacific had the highest revenue share in 2020 and is expected to maintain this trend throughout the forecast period. According to the ADB report, one of the major factors contributing to market growth is the rising wellness tourism segment. In 2017, India ranked seventh as a wellness tourism destination, with a wellness tourism expenditure of US$16.3 Bn resulting in 14% of employment. Furthermore, a growing number of hotels/resort spas in India offering traditional Ayurvedic resorts are becoming top destinations for spas and wellness retreats offering a comprehensive package of services. Apart from that, the high demand for spa facilities and experiences leads to the establishment of the nonprofit Thai Spa Association, which promotes the industry and works to ensure high standards in staff training, spa management, and equipment. Such factors have a positive impact on regional growth, ultimately contributing to overall market growth through the forecast period.

Europe, on the other hand, has the fastest growing CAGR in the spa market during the analysis period. One of the key factors driving the growth of the spa market in the European Union is the certification of hygiene management in medical spa hotels-HMC-Hygiene Management Certification. The EuropeSpa certification is well-known throughout Europe. As a result, spa facilities in Europe welcome the Europe-Spa testing approach, which has resulted in an anonymous ranking of where they stand in comparison to other certified spas tested in 12 European countries and three countries on other continents.

Competitive Landscape

The prominent players of the global spa market involve Planet Beach, Hot Springs Resort & Spa, Four Seasons Hotels Limited, Massage Envy Franchising LLC, Lanserhof, Jade Mountain, Rancho La Puerta Inc., and among others

Market Segmentation

Market By Service Type

Hotel/Resorts Spa
Destination Spa
Day/Salon Spa
Medical Spa
Mineral Spring Spa
Others

Market By Geography

North America
•    U.S.
•    Canada

Europe
•    U.K.
•    Germany
•    France
•    Spain
•    Rest of Europe

Asia-Pacific
•    China
•    Japan
•    India
•    Australia
•    South Korea
•    Rest of Asia-Pacific

Latin America
•    Brazil 
•    Mexico
•    Rest of Latin America

Middle East & Africa
•    GCC
•    South Africa
•    Rest of Middle East & Africa


Frequently Asked Questions

Spa market is expected to reach a market value of around US$ 167.8 Bn by 2028.

The spa market is expected to grow at a CAGR of around 13.2% from 2021 to 2028.

Based on service type, hotel/resorts spa segment is the leading segment in the overall market.

Rising hotel chains is one of the prominent factors that drive the demand for spa market.

Planet Beach, Hot Springs Resort & Spa, Four Seasons Hotels Limited, Massage Envy Franchising LLC, Lanserhof, Jade Mountain, Rancho La Puerta Inc., and among others.

Asia Pacific is anticipated to grab the highest market share in the regional market

Europe is expected to be the fastest growing market in the forthcoming years

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