More men, corporate clients and families are expected to use spas
Melbourne, Australia (PRWEB) September 20, 2012
Health and wellness spa operators are in a relaxed mood. Demand for the industry's services has soared over the last decade due to rising concern with health and appearance. Growth proved relatively resilient despite softening economic conditions, with consumers viewing spas as an inexpensive luxury and a relaxing escape from their stressful lives. The Health and Wellness Spas industry has also benefited as spas became popular with a wider client base, including men, corporate users, young couples and families. According to IBISWorld Industry analyst Steven Connell, “the industry will continue to perform well in 2012-13, with revenue rising by 4.1% over the year”. IBISWorld estimates industry revenue will increase at a compound annual rate of 4.3% over the five years to 2012-13 to total $359.4 million.
The industry is expected to remain in a healthy state over the next five years, underpinned by continued societal concern with health and appearance. The recovering economy and trend towards working longer hours is expected to stimulate demand for spas. The industry should continue to broaden its appeal, with more men, corporate clients and families using spas. The industry is likely to become more fragmented as some operators cater towards older clients demanding health related services, while other businesses focus on younger, more appearance-driven clientele. “A forecast upturn in international tourism should stimulate demand for the up-market resort spa sector”, says Connell. IBISWorld estimates industry revenue will increase over the five years to 2017-18.
The Health and Wellness Spas industry is highly fragmented and market share concentration is low. Over the five years through 2012-13, industry revenue expanded. However, growth slowed once the global financial crisis took hold of the wider economy. While the industry continued to grow, it was much slower that that experienced prior to the global financial crisis. As a result of the growth, the industry has not experienced significant consolidation or rationalisation. Instead, the industry is beginning to develop clearly segmented product groups and niche markets. For instance, Daintree Eco Lodge, which is located in Daintree, Queensland, incorporates aspects of Aboriginal culture into its spa experience. The largest player in the industry is Endota.
For more information, visit IBISWorld’s Health and Wellness Spas report in Australia industry page.
Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau
IBISWorld industry Report Key Topics
This industry offers spa services such as massages, facials and body treatments. The industry includes day spas, resorts, hotel spas and medical spas.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.