Spa: Key market research findings:
- Personalization of products and services
- Growing dominance of day/club/salon spa segment
Technavio’s market research analysts estimate the global spa market, to grow at a CAGR of 9% between 2016 and 2020. Spa is a core business within the wellness tourism industry and represents about 42% of wellness tourism expenditures. Growth in wellness and hospitality industry will boost the revenues in spa market. Europe is the largest market for spas worldwide, occupying around 40% of the total market share. Specialized urban spas and boutique hotels in the region offer differentiated services to customers at different pricing options.
The new market research report from Technavio provides a breakdown and analysis of the spa segments by technology.
“Of late, the spa industry is focusing on providing personalized therapies to further enhance treatment results. Clients can now choose the kind of treatment they want such as calming, balancing, or re-energizing. Spas are offering variations of a set treatment, such as replacing a relaxing essential oil with a revitalizing one depending on the client’s needs. They are also allowing clients to mix and match services as per their skincare requirement,” says Brijesh Kumar Chaubey, Lead Analyst, Consumer & Retail, Technavio Research
Currently, the day/club/salon spa segment dominates the spa market, occupying around 41% of the total market share. The segment is expected to generate revenues of $53.12 billion by 2020, primarily because of their easy accessibility and wider range of product offerings. Day spas offer a wide variety of services that include massages and facials, conducted by trained professionals on a day-use basis. Club spas are similar to day spas; however, their primary purpose is fitness.
Hot Springs Resort and Spa, Lanserhof, Massage Envy, Rancho La Puerta and St. Regis Aspen Resort. The market is highly fragmented, with local and international players bringing innovative service and product offerings to meet the wellness requirements of customers. A key strategy that companies are opting for is the branding of their spas, attracting customers by differentiating their services from that of others and enabling easy identification. Competition in the market is expected to intensify over the next four years, owing to price wars and mergers and acquisitions.
A more detailed analysis is available in the Technavio report, Global Spa Market 2016-2020.
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