Spa Services Market Size, Share & COVID-19 Impact Analysis, Facility Type (Day, Hotel/Resort, Medical, and Others), Service (Massage, Beauty/Grooming, Physical Fitness, and Others), End-user (Women and Men), and Regional Forecast, 2020-2027

The global spa services market size was valued at USD 105.18 billion in 2019 and is projected to reach USD 133.28 billion by 2027, exhibiting a CAGR of 4.1% during the forecast period.

Spa, which is still considered a luxury, has gradually started expanding its roots towards the middle-class population. This luxurious service has a literal meaning of ‘treatment through the use of water’ translated from the Latin word 'Solus Per Aqua'. Spa services were originated primarily in Europe in ancient times as it was believed that the water can curate any type of disease. The treatment used to be offered by taking a bath in thermal springs. Willingness to experience the convergence of the body, mind, and spirit has led to availing various therapies from proven aromatherapy to novel cryotherapy, LED therapy, hydrotherapy, and sound therapy among others. Therefore, changes in the consumer mindset are likely to bolster demand for spa services in the near future.

Strict Lockdown Measures Severely Impact Wellness Industry During COVD-19 Outbreak

Government authorities across the globe have imposed stringent rules to contain the virus. Shelter-in-place orders made the customers cancel their planned visits to the personal care service facilities. The government has imposed physical distancing rules, where a minimum distance of about 6 feet has to be maintained between two people to limit virus infection. And, for availing services such as body massages and facials, the therapist has to be in close proximity with the guest and has to touch the body/face of the guest for completing the treatment. Therefore, the physical distancing rules cannot be followed at such centers as physical contact is imperative during the treatment process. These aforementioned factors along with cessation on services will adversely affect the market

Moreover, hotel/resort and destination spas are badly hit as these facilities had to be shut down under the government's lockdown rules. For instance, the OneSpaWorld, South East Asia’s biggest service provider, had to close all of its destination resort facilities in the U.S and Caribbean region as well as in the majority of Asian countries, where company officials have estimated to lose of US$ 35 million in revenues in the first quarter of 2020 due to the pandemic effect.

Similarly, according to the survey conducted by the UK Spa Association for COVID-19 impact on the wellness industry, in the first half of 2020, 80.6% of UK respondents operating in the market said their facilities are closed down, whereas about 31.1% of surveyed participants said that they are anticipating gross revenue to decrease by 51%. However, as per the same source, 80% of customers are keen to visit these service centers immediately (48%) or in the next few months (36%) after the lockdown is lifted. Nevertheless, rising awareness regarding fitness and well-being especially in the time of pandemics will be a driving factor for the growth opportunities of the market.

LATEST TRENDS

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Technology-Enabled Facilities are Likely to Attract Visitors

Massage centers, as well as sauna facilities, are becoming stronger by day with the adoption of software-based management systems, which enable the customers to easily book appointments as well as provide hassle-free transaction options.

For instance, American Spa has reported results of DaySmart Software’s survey of 2019, on small-sized salon and allied businesses in the U.S., which indicated that 56% of such facility owners have already started using business management software. As per the same source, the use of software has led to an increase in customer satisfaction by 52%, improvement in marketing abilities by 30%, and most importantly escalated sales revenue by 30%.

Several facilities are taking efforts for gathering personalized data through social media platforms and various applications for their guests, to offer customized packages that can enhance their experience during the visit and also encourage them for future engagements. Digitalization has enabled the visitors to virtually meet the staff, take a location tour prior to the visit as well as review the food offerings through the website.

Therefore, the implementation of various ‘Customer Relationship Management programs’ by the facility owners is likely to aid in the footfall of visitors.

DRIVING FACTORS

Wellness Tourism Trend to Bode Well For Market

Growing hectic lifestyle-related concerns have led to the deterioration of health among people across the globe. Hectic schedules and longer travel times pose a negative effect on the body. Therefore, tourists are seeking options where they can gain the advantage of being healthy and rejuvenated during their travel. For instance, as per data released by the Global Wellness Institute in 2018, the number of wellness trips increased from 691 million in 2015 to about 830 million in 2017.

‘Green’ concept-based facilities, ship/cruise-based facilities such as offered by OneSpaWorld as well as time-saving quick service centers such as XpressSpas at airports and cab-based services are being greatly explored by tourists. Attractive packages for couples are being offered at destination spas which are also driving the market growth.

Therefore, growing awareness regarding body and mind wellness and the rising tourism industry worldwide is expected to promote market expansion.

Growing Popularity among Teenagers and Baby Boomers to Foster Demand

The growing popularity of beauty services among teenagers is positively impacting the market. Teenagers avail spa services before school/college functions or proms where they are greatly looking for grooming treatments that can enhance their appearance as well as tone their body through rigorous fitness and diet programs.  Beauty service facility owners are investing in attractive specialty packages, interior décor, lighting effects, and music facilities to gain the teenager's attention. For instance, Slieve Russell Hotel specifically offer packages for 13-16 yrs old guest under ‘Professional Junior Treatments’ services such as manicure, pedicure, and facials.

On the other hand, elderly people experience several body-related concerns such as back pain, neck pain, digestive disorders, and others due to their collapsing health. Therefore, relaxing treatments, pain management, anti-aging as well as internal body healing packages are being widely explored by the geriatric population which is likely to further accelerate market growth. Global Wellness Summit 2020, released its report on ‘10 Wellness Trends for 2020’ in January 2020, wherein, it has identified wellness needs among the aged old generation as a significant aspect. And therefore, it has taken ‘Aging Rebranded: Positively Cool’ as one of its ten forecasted trends for 2020.

RESTRAINING FACTORS

High Cost, Regulations and Employment Issues to Limit the Growth

The higher cost of most of the packages which are not affordable to the mass population can limit the market growth. Moreover, several strict regulations are imposed by governing authorities for operating such types of facilities to ensure the safety of the staff as well as guests. Therefore, the facility operator has to comply with several stringent governmental regulations while operating the business, wherein it also has to face the strict inspection process number of times throughout the business cycle. This factor poses challenges to the facility operator.  Moreover, rising incidences of physical abuse and other malpractices at such facilities are likely to limit customer visits as well as pose challenges in employment due to safety issues of working at such centers.

SEGMENTATION

By Facility Type Analysis

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Day Segment to Hold Major Share Due to Easy Access and Affordability

The market for spa services is segmented as a day spa, resort/hotel, medical spa, emirates palace, and others (destination, mineral springs, etc.). Day type facility offers services that can be completed within a short period within a day. Whereas, facilities under the hotel/resort and destination segment include services that can span from a day to one week depending on the requirements, where guests can have food as per the diet plan and also can stay at the same location overnight.  Therefore, day facilities are affordable to most of the visitors as the package does not include staying and food charges.

Destination or mineral/thermal spring facilities are majorly explored by tourists and the high-class population. On the other hand, medical service providers offer specific treatments in the presence of healthcare professionals to give solutions to ailment as well as therapeutic bathing that aid in the healing process from several disease types. And, growing concerns related to the body as well as psychological problems are expected to increase the need for medicated facilities in the near future.

By Service Type Analysis

Massage Segment to Dominate Due to its Traditional Usage

Based on the service type, the market is segmented as massage, beauty/grooming, physical fitness, and others (hydrotherapy, diet, etc.). Spas are traditionally known for offering massage services for relaxing body muscles including full-body, foot, hot stone, Thai massage, and prenatal as well as couple massage among others are available as per customer requirement. However, facials, manicures, pedicures, and other grooming services are gaining traction owing to the growing trend of beautification. Consciousness regarding fitness is expanding opportunities in the fitness category, where demand for yoga and breathing exercises is increasing.

By End-user Analysis

Escalating Male Grooming Trend to Boost Men Segment Growth

Women are the primary users of personal care services and therefore women segment hold a major spa services market share. However, the increasing trend of grooming among men population is likely to propel men segment growth. Several companies are coming up with centers dedicated only to male customers, such as New Paradise Men's Spa based in New York, U.S. that offers massage, and facials that are specifically designed by men only for men customers. Therefore, the growing adoption of massage and beauty services by men is likely to push overall market growth

REGIONAL INSIGHTS

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The North American market is majorly driven by a rising number of luxurious service facilities and growing demand for full body massage and beauty treatments in the U.S. and Canada. For instance, as per the American Massage therapy Association’s ‘Massage Profession Research Report 2019’, in the U.S., about 47.5 million people had a total of 214 million massages in 2018, where about 33% of messages were offered through the spa. This number increased from 179 million massages availed by 47.1 million people in 2017.

The market size in Europe stood at USD 37.71 billion in 2019. The market in Europe is expected to hold a dominant position owing to the increasing disposable income of the populace. Increased spending on health owing to increased awareness regarding well-being in the region also contributes to greater market penetration. Moreover, growing travel and tourism activities in European countries is further driving the regional market growth. For instance, as per the ‘Survey on International Tourism’ published in June 2019 by the Bank of Italy, total expenditure in Italy in 2018 by foreign travelers was valued at US$ 47.9 billion that increased by about 6.5% than that of 2017.

A significant share is held by the Asia Pacific owing to the growing middle-class population in the countries as well as an increasing number of massage, sauna as well as mineral spring facilities in the region. For instance, as per data published in 2018 by Global Wellness Institute, Asia Pacific had the highest number of spas across the world that was valued at more than 48,500 facilities in the year 2017.

South America & the Middle East & Africa, hold a lower market share, however, the growing popularity of beauty treatments in gulf countries, as well as countries such as South Africa and Algeria, is likely to fuel demand for spa services in the region. For instance, in 2017, about 70 hot springs in 24 governorates in Algeria were allocated to private investors by the government for spa development. Therefore, rapid urbanization in the region will boost market growth.

KEY INDUSTRY PLAYERS

Customized Packages and Remodeling Activities to Aid Players for Attracting Guests

The Spa Services market is characterized by several small-scale private businesses as well as giants such as Marriott and Hyatt. Players are largely focusing on offering customized packages to the customers for enhancing their experience in the facility. Similarly, owners are adopting software-based tracking systems and applications to collect and sort data from a customer that enables paperless convenient management of the facility.  

Moreover, players are taking efforts on continuous renovation activities as per the changing customer preferences, as the classic ambiance is one of the important factors considered in such types of personal care centers. For instance, in the first half of 2019, Naantali Spa underwent refurbishment and room renovations at facility to attract new clients and retain previous customers.

Therefore, strategies such as offering customized packages, creation of attractive décor, and improved digitalization are adopted by players to gain a competitive advantage.       

LIST OF KEY COMPANIES PROFILED:

• Hyatt Hotels Corporation (Chicago, U.S.)


• Four Seasons Hotel Limited (Toronto, Canada)           


• Marriott International, Inc. (Maryland, U.S.)


• Hilton Hotels & Resorts (McLean, U.S.)


• OneSpaWorld Holdings Limited (Coral Gables, U.S.)


• Siam Wellness Group (Bangkok, Thailand)


• InterContinental Hotels Group plc (Denham, U.K.)


• Massage Envy (Scottsdale, U.S.)


• Kempinski Hotels S.A. (Geneva, Switzerland)


• Brenners Park-Hotel & Spa (Baden-Baden, Germany)

KEY INDUSTRY DEVELOPMENTS:

• March 2021: Kempinski Hotels S.A. acquired Resense Spa S.p.A. to offer partner's high-end spa services to its customers.


• October 2020: Hilton Hotels & Resorts opened a new hotel named 'DoubleTree' in Rajasthan, India, to offer its fitness & spa services.


• October 2019: Marriot International Inc. opened a new J.W. Marriot's resort & spa at the Vagaru Island, Maldives location to offer signature spa services, including head-to-toe pampering and luxurious treatments for tourist visitors in the Maldives.

REPORT COVERAGE

An Infographic Representation of Spa Services Market

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The spa services market research report provides a detailed analysis of the market and focuses on key aspects such as competitive landscape, service types, and leading facility types. Besides this, the report offers insights into the spa services industry trends and highlights key spa industry developments.

In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the spa market in recent years.

Report Scope & Segmentation