(PRWEB) March 08, 2013
The $14.7-billion Health and Wellness Spas industry has generated strong growth over the past decade. The industry includes a variety of spas, such as day spas, spa resorts, hotel spas and medical spas, of which day spas make up the vast majority of the total. The industry experienced double-digit growth in the mid-2000s, driven by the increasing spread of value-priced day spas in relatively untapped consumer markets. However, the industry's progress was halted by the arrival of the Great Recession, which snapped a 22-year growth streak in per capita disposable income.
Consequently, industry revenue dived 4.9% in 2009, as consumers increasingly cut discretionary spending on luxury services such as spa treatments. In the years since the recession, industry revenue has gradually recovered with improving per capita disposable income and consumer confidence, says IBISWorld industry analyst Caitlin Moldvay. In 2013, disposable income is expected to rise 1.7%, underpinning a 3.5% growth in industry revenue. Overall, the Health and Wellness Spas industry is expected to grow at an annualized rate of 1.3% over the five years to 2013.
In 2011, Americans made 156 million spa visits, according to the latest information from the International Spa Association. There are currently an estimated 20,774 spas operating in the United States. Day spas make up the majority, accounting for 78.9% of total spas, while resort spas and medical spas make up the next-largest categories. To generate growth, spas have expanded their array of service offerings, particularly their range of antiaging treatments and medical treatments, continues Moldvay. These services, such as Botox, laser hair removal and teeth whitening, have been strong growth segments. Market share concentration within the industry is low. The Health and Wellness Spas industry is highly fragmented; operators are spread across many locations to be close to key consumer markets in high-traffic locations. This trend makes it difficult for one company to serve a large portion of the entire market. The industry's largest player, Massage Envy, is franchised. Other large companies are typically high-end resorts such as Golden Door Spa, which generate high revenue per establishment but only operate a few locations.
Over the five years to 2018, improving economic conditions will pave the way for accelerated industry growth. As the unemployment rate gradually abates, per capita disposable income is forecast to rise, leading to greater spending on discretionary spa services. The baby-boomer generation in particular is expected to be a source of growth for the industry during the period as spas expand their array of antiaging products and services. For more information, visit IBISWorld’s Health and Wellness Spas in the US industry report page.
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IBISWorld industry Report Key Topics
Companies in this industry offer spa services, such as massages, facials and body treatments. The industry includes day spas, spa resorts, hotel spas and medical spas.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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