Global spa market set to grow to USD 140 billion by 2032, says FMI

Growing consumer awareness & modern lifestyle drive demand
/ New Delhi
Global spa market set to grow to USD 140 billion by 2032, says FMI

Rising stress levels led to sharp rise in demand for spa services around the world

Rising stress levels associated with modern lifestyle as well as greater consumer awareness have led to sharp rise in demand for spa services around the world. The market is set to grow at 10 pc CAGR for a decade, says a report by market analyst firm FMI.
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Over the past few years, spa has become part of all modern lifestyles, propelling demand for spa services around the world. According to a report by market research and analysis firm Future Markets Insight (FMI), the global spa services market is expected to reach USD 140.28 billion by 2032, growing at a compound annual growth rate (CAGR) of 10 pc during the period of the forecast. FMI says that the market in 2022 was estimated to be worth USD 105.18 billion.

The major factors impacting the demand for spa services include  increasingly hectic lifestyles in metropolitan regions, rise in inbound and outbound tourism for the purpose of wellness, increase in demand from emerging countries and growing consumer awareness.

FMI says that globally, people’s health has gotten poorer as a result of mounting concerns about an increasingly chaotic lifestyle. Extended travel periods and hectic schedules are bad for the body. Therefore, travellers are looking for ways to enhance the benefit of being healthy and rejuvenated when travelling, it says.

Another factor driving the growth in demand for spa is the rising reputation of beauty services among youths that is positively impacting the market. Teenagers avail spa services before school/college gatherings or proms, where they are looking for grooming treatments that can improve their looks, as well as tone their body through rough fitness and diet programmes.

On the other hand, elderly people experience several body-related distresses, such as back pain, neck pain, digestive disorders, and others, due to their failing health. Thus, comforting treatments, pain management anti-aging, as well as internal body healing packages are being widely explored by the elderly population, which is likely to further accelerate spa services market progress.

FMI says that the prevalence of long-term conditions like asthma will continue to drive up demand for a diverse array of spa treatments in the international spa services market. The use of steam baths and saunas, which cost money, helps asthma patients open their airways and eliminate toxins through their skin. In addition, increasing the amount of money spent on steam baths can assist in the treatment of upper respiratory issues, such as coughing and bronchitis, by facilitating the release of phlegm and mucus.

The increasing demand for asthmatic relief and relaxation is anticipated to help the expansion of the spa services market around the world, says FMI in the report.

An interesting development in the global spa business is the use of technology in terms of SaaS, CRM and contactless booking. FMI says that spa providers have launched products on the lines of ‘software as a service’ (SaaS) which refers to software that is licensed on a subscription basis and is hosted centrally.

FMI says that new software as a service (SaaS) called Spa Space offers cost reductions, optimisation of income streams, and an increase in client satisfaction. A customer’s preferences regarding location and length of treatment are considered by an algorithm that is currently being considered for a patent.

Delivering unique KPI reporting and dynamic yield management to spas is made possible by the ability to install turnkey spa management solutions. These solutions include payments, scheduling, local marketing, and therapist sourcing, and they make it easier for spas to open their doors again, says FMI.

Another technological application in spa is contactless booking which offers safe and effective remote transactions across the board, from the booking procedure itself to check-in and check-out, as well as product purchases. In addition to the apparent safety offered by a touchless experience during the pandemic, contactless booking grants guests complete control over their journey from the beginning to the end, it says.

Another tool being used is customer relationship management (CRM) which resort hotel spas can use to have a chance to acquire business by directly targetting and connecting with guests before their arrival. This can be accomplished by directly targetting potential customers. Also, FMI adds that locals are an ideal demographic for hotel spas to target for memberships, staycation packages, and repeat visits.

The availability of numerous therapies, ranging from tried-and-true cryotherapy to cutting-edge LED therapy, hydrotherapy, and sound therapy, among others, has been prompted by a desire to experience the convergence of the body, mind, and spirit.

As a result, the demand for spa services is projected to increase in the near future as customer attitudes change. The therapist must be near the client in order to provide services like body massages and facials, and must be in close proximity to complete the procedure.

Another factor for rising demand is the growing trend of travelling for relaxation, wellness, and meditation is more prominent in North America and Europe, especially in countries such as Germany, France, the UK, US, and Canada, among others.

The concept of spas for wellness therapy is also booming in emerging economies, with the growth of the hospitality industry in these economies. Thailand is popular for traditional spas, especially Ayurvedic and Thai massages, it says.

However, there are a few challenges for the spa providers. The market expansion may be constrained by the greater price of the majority of packages, which are out of the reach of the general public. Additionally, to secure the safety of the workers and visitors, the governing authorities have implemented several severe laws for running these kinds of facilities. As a result, to operate the business, the facility operator must adhere to several tight governmental laws. Additionally, throughout the business cycle, the operator must undergo several strict inspections.

For the facility operator, this element presents difficulties. Moreover, increasing instances of physical abuse and other malpractices at these facilities are expected to reduce client visits, as well as present difficulties in employment due to safety concerns associated with working at such facilities.

Although demand for global spa services as a part of the wellness tourism market is seen significantly, certain factors are hindering the growth of the global spa services market, such as low penetration of spa services in developing countries and less availability of trained spa professionals.

Demand in diverse geographies

In the report, FMI has listed some of the key regions driving the growth in demand for spa services. It says that the demand for full body massages and other aesthetic treatments in the United States and Canada, as well as the expansion of upscale service facilities, are the main factors driving the North American market.

The market in North America is expected to witness a rapid growth rate during the forecast period, owing to the growing number of luxurious massage services and facilities in the United States. In addition, people from the region have shown an increasing inclination towards rejuvenating treatments.

FMI adds that besides aging baby boomers, the millennials are also plunging headfast into the spa industry, as they seek to opt for relaxing treatment options, given the prevalence of hectic lifestyles. Thus, North America holds about 25 pc global market share and is expected to rise across the 2022-2032.

Asia-Pacific is another region to be watched, says FMI, adding that emerging economies in this region, including Japan, India, and China, are exhibiting strong economic growth. The flourishing hospitality industry and the growing popularity of traditional spas, such as Thai massage and Ayurveda in the region, would continue to drive the spa services market.

Asian spa service demand is spearheaded by nations like China and India. Spa industries are being drawn to both of these countries by their growing populations. Additionally, people are choosing spa treatments due to the region’s worsening health conditions.

Furthermore, the travel and tourism industry has expanded significantly. Thus, resorts in the region are offering attractive packages for customers. Also, traditional ayurvedic treatments in the region have created humongous opportunities for the spa industry.

Due to the region’s expanding middle class population, as well as the rising number of massage, sauna, and mineral spring facilities, Asia Pacific currently holds a sizable part of the market at about 22%.

“Europe is expected to witness the fastest growth with a CAGR of 19 pc by 2032,” says FMI. Due to the rising expenditure on health and wellbeing, Europe is anticipated to dominate the global market in the upcoming years. The rising awareness about body and mind spur opportunities for the spa services market in Europe. It is anticipated that the well-established travel and tourism sector helps the Europe spa services market expand.

The government initiatives and favourable regulatory environment are further boosting the spa services market growth. With the increasing popularity of wellness among ordinary people, many spa vendors in Europe have developed a wide range of services to encourage healthy living.

Moreover, increased spending on health owing to increased awareness regarding well-being in the region also contributes to greater market penetration. Also, growing travel and tourism activities in European countries are further driving the demand for spa services.

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