Professional Documents
Culture Documents
SPA Market
SPA Market
Sample
Salon/Day Spa
Hotel/Resort
By Service Type
Medical Spa
Destination Spa
SPA MARKET
North America
South America
Asia-Pacific
By Geography
Europe
• Plant Managers
• Company Annual Reports • Sales Managers • Industry Experts
• Insights from Data and
• Journals • Surveys • Consultants
Forecast, Compiled into
• Government Publications • Manager - Purchasing and • Subject-matter Experts
One Report
Logistics • In-house Experts
3. EXECUTIVE SUMMARY
The global spa market (henceforth, referred to as the market studied) was valued at
Spa Market: Revenue in USD billion, USD XX billion in 2018, and it is expected to reach USD XX billion by 2024, registering
Global, 2015-2024
1 a CAGR of XX%, over the period of 2019-2024 (henceforth, referred to as the forecast
period).
SAMPLE FIGURE
The global spa market has a huge potential, comprising of both men and women
2 beauty and personal care products and services. Consumers are in search of places
offering wellness solutions and services, which can relieve stress from the busy
USD billion
lifestyle.
The rising demand for healthy and standard lifestyles is one of the important factors
3 fueling the growth of the market studied. The various types of spas offered to the
consumers include medical spas, day spas, mineral spring’s spas, and other types.
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
The increasing disposable income, growing focus toward personal appearance, and
4.2 Drivers
4.3 Restraints
4.4 Challenges
• Spa is considered as one of the important factors in the wellness industry, as it provides healing, relaxation, and feeling of rejuvenation.
• In 2017, the number of spas has grown to over 149,000, earning USD billions in revenues and employing nearly 2.6 million workers.
• The main drivers of the spa industry are rising incomes, rapid growth of wellness tourism, and an increasing consumer propensity to spend on all things related to
wellness.
• Asia-Pacific is home to the largest number of spas and also added the highest number of new spas during 2015-2017. The Asian hospitality market is gaining
significant traction. The market players are recruiting top executive talent to lead their spa divisions in Asia and integrating their traditional spa modalities with
modern wellness culture. Fusion of western contemporary with eastern traditions is giving an authentic feel to spa rituals, such as massages, spa therapies, and spa
cuisine.
• Europe led in total spa revenues in 2018, globally. The spa industry remains quite concentrated in the top markets. The industry is becoming slightly more dispersed
over time. North America’s spa industry is growing at a faster pace, with major share held by the United States followed by Canada. There are niche spa services
that are therapeutic in nature and serve patients with specific medical conditions.
• One notable spa industry trend is the personalization of products and services. Customers that are seeking a premium experience do not want cookie cutter
treatments, but a more bespoke experience.
• With the aim of delivering effective spa treatments to their customers, the spa industry is now focusing on providing personalized spa therapies or services. These
services may enable the customer to further enhance their treatment results. Customers are asked to identify specific skincare concerns that they want to focus on
in the therapy.
• Spa tourism is for the purpose of relaxation, healing, or beautifying of the body in spas using preventative wellness and curative medical techniques, and hence,
there is a conceptual overlap between wellness and spa tourism.
• The high adoption rate of spa services by teenagers is also triggering the growth of the market studied. The geriatric
population is also opting for these services, keeping in mind the benefits offered by the spas, such as pleasure and peace
of mind to end users. The factor hindering the growth of the market is the high cost of skilled professionals operating in the
spa industry. The expensive products, solutions, and services costs charged by the spas also limit the growth of the spas.
The launch of customized products and technological innovations in the spa industry are expected to offer tremendous
opportunities in the market studied.
• Personalization of spa services is one of the major trends being witnessed in the global spa market, during 2019-2023.
With the aim of delivering effective spa treatments, the spa industry focuses on providing personalized spa therapies or
services. These services enable them to further enhance their treatment results. Many vendors offer package spa
treatments as per customer requirements and also provide day packages. Thus, many spas offer these packages at their
premises to attract more customers, and the personalization of products and services has become a growing trend in the
industry.
• Natural and organic spa products are preferred over others, due to increasing awareness about synthetic chemicals in
cosmetics and toiletries. Consumers check through the labels to avoid certain ingredients and prefer using natural products,
such as Mayan clay, rhassoul mud, essential oils, and herbal extracts.
• Personal care product companies are launching natural products and acquiring natural product offering companies as a part of
growth strategy. For instance, in February 2018, Procter & Gamble Co. acquired New Zealand skin care company Snowberry,
which specializes in natural ingredients. Unilever purchased a brace of natural personal care brands in the last few years,
including Schmidt’s Naturals (2017), Sundial Brands (2017), Seventh Generation (2016), and REN Skincare (2015).
• The European spa market led the global market in 2018. The major growth driver of
Spa Market: Value (%), by Geography, Global, 2018
the European spa market is the increasing focus on health and beauty and rising
expenditure on relaxation through services, such as massages and facials. Massage
continues to be the major revenue generating segment in spas, as most people opt
for this service during their visit to spas. With the growing health and wellness trend
among the people, several European spa market vendors have come up with a
diverse range of services that may promote healthy living.
• Many spas have also hired certified on-call experts, who offer nutritional experts in
sync with one’s individual lifestyle. Moreover, the growing collaboration with cosmetic SAMPLE FIGURE
players may further contribute to the growth of the spa market in Europe. Spas are
partnering with cosmetics giants, to improve their product portfolios and generate
consumer interest.
• The European spa industry is focusing on offering personalized therapies to
customers, to enhance their treatment outcomes. Clients are asked to identify specific
skincare concerns and can choose the kind of treatment they want, such as calming,
healing, balancing, and re-energizing. Some spas are also providing variations of a
set treatment, such as replacing a relaxing essential oil with a revitalizing one
Europe Middle East and Africa North America South America Asia-Pacific
depending on the client’s needs.
• After Europe, the market share was followed by the Middle East & Africa, the
Americas, and APAC, respectively.
High
GROWING DISPOSABLE INCOME
RISING URBANIZATION AND BRAND POSITIONING
Market Drivers
Low
Short-term Medium-term Long-term
Low
Market Restraints
Impact
• The global spa market is fragmented with the presence of many players. Hence, brand positioning is a key factor for the players. Spas offering
wellness programs and treatments target customers trying to unwind and relax, which lead them to adopt brand positioning strategies to create an
image of the brand with its associated services. This also helps vendors price their services at a premium, depending on the location, superior
facilities, and use of technology-based treatments and services.
• In March 2017, Massage Envy franchising started a campaign called ‘Making the Best of Everybody’ with two prolonged
communication approaches. The first set of advertisements highlighted their membership value, whereas the second set
featured more than 25,000 massage therapists employed by franchised locations.
• Franchisors have accepted the fact that the customers define the brand, based on their interactions and experiences. It’s mandatory to understand the client’s
needs to run one’s spa business successfully. Spa franchisors are considering the store design, personnel dressing, and other elements of client’s experience, while
serving them. One-on-one communication, observation, and surveys are taking place to understand their clients.
• Consistency is the key to a brand’s success. Detail attention is important in establishing a strong brand identity. Franchisors should ensure that any interaction a
client has via the website, advertisement, or the spa experience, things are consistent and designed to meet their expectations, shaping your overall brand’s image.
• Franchisors should be aware that the spa industry change and evolve with time. It is required to branch off into new directions, considering the current trend. The
management team should consider their working procedure, making sure whether they have strayed from the original message or its time to provide new identity to
the brand.
5.1.2 Hotel/resort
5.2 By Geography
5.2.3 Asia-Pacific
5.2.4 Europe
• A medical spa comprises the medical expertise and technology with the relaxing experience of a spa and also provides comprehensive and skin care solutions,
such as nutrition and exercise advices.
• The rising number of aesthetic medicine and cosmetic treatment options for beauty enhancement, coupled with the growth in wellness trends among developed
countries, drives the market growth.
• However, the lack of skilled professionals and the high cost associated with the procedures impede the segment growth. Moreover, the rise in medical tourism in
developing economies, such as India, China, and Brazil, is anticipated to create prosperous opportunities in the market.
• The global medical spa segment is divided into body shaping, hair removal, facial treatment, tattoo removal, scars and striae, and others.
• In the services category, the facial treatment segment is expected to be the most lucrative, owing to the trend and increased awareness for improving self-
appearance. In addition, various facial treatments are provided in the medical spa, such as nature signature facial, derma wave and dermaplaning, oxygen facial,
ultrasonic fountain, and others. Thus, such an increase in novel techniques and procedures is expected to augment the segment growth.
• Medical spas are usually targeted toward a specific group of clients, who have high expectations from its services. That is why, the marketing of a medical spa is
done in a completely different manner than that of usual health care products. Similarly, the medical spa industry encounters different kinds of challenges than the
general health care industry does. Nearly all medical spa patients pay for the services from their own pockets, which is why customer service is an important
aspect of the medical spa industry.
• High interest for surgical procedures and advancements in technology have expanded minimally invasive treatment options and helped to make aesthetics more
accessible to women and men of all ages. The growth of minimally invasive procedures reflects the rising interest in treatment options that deliver results with little
downtime.
• The segment’s strength is, due to two groups, most likely to use medical spas and to want cosmetic procedures in coming years: Baby Boomers and Millennials.
Baby boomers are trying, in many cases, to turn back the hands of time. However, the future growth is likely to be focused on Millennials, who are aging and are
entering their prime income-earning years. As both groups age and technology evolves away from surgical procedures, the short-term growth of the segment
projects to be quite robust.
• The practice of franchising is not yet popular in the medical spa segment; however, this may well change in
the next few years. In the present and future medical spa space, franchises are once again becoming part
of the landscape. Multiple franchises are in development stages.
• The medical spa industry exists at the unfortunate confluence of regulations, and often, the rules of multiple Nearly 70% of med spas are
professional boards. Although, it is easy for the medical spa industry to unintentionally run afoul of this web protecting themselves by
of regulation, it is also shockingly common for some medical spas to be non-compliant with even the most avoiding the payment
basic of rules. of commissions as part of their
• Equally shocking is that the reason behind this non-compliance can be traced back to simple maxim: many, compensation packages to
if not most, of the services offered in medical spas constitute the practice of medicine. employees.
• Spas that establish clear policies and procedures for compliance can see benefits, such as reduced risk of
fines, criminal violations, and professional board censures; and increased patient satisfaction and safety.
• The facial treatment segment accounted for the major share of the global market
revenue in 2017. Medical Spa Market: Value (%), by Geography, Global,
• The body shaping segment accounted for largest share of market revenue. This 2018
segment has been boosted by recent advances in body shaping, which include
various non-invasive techniques that enable less hospitalization and faster recovery.
Thus, such advances in the body shaping segment should continue to drive growth in
this segment.
• The hair removal segment is the second larger in terms of market revenue in 2017.
Growth in this segment can be attributed to innovations in laser technology, which
render permanent hair removal feasible. SAMPLE FIGURE
• The tattoo removal segment accounted for a significant revenue share of the market
in 2017.
• India is the fastest-growing country in the Asia-Pacific medical spa market, projected
to grow at a significant CAGR for the forecast period.
• In 2017, North America was the dominant revenue contributor, due to the growing
wellness trend and the early adoption of new technologies in the sector.
• However, Asia-Pacific is expected to achieve the highest CAGR over the forecast
Europe Middle East and Africa North America South America Asia-Pacific
period, due to rising incomes in heavily populated countries, such as India and China.
In addition, medical tourism may also fuel the market growth.
• The aesthetic industry and particularly the non-surgical aesthetic industry is exploding. The future looks bright
for the medical aesthetics industry, but with the rise in competition, medical spa owners and operators may
need to work harder than ever to make their facilities stand out. This is likely to take great ingenuity and
marketing savvy.
• However, understanding that this is the likely state of things to come, it is expected to help conscientious
medical spa operators prepare for it.
• The growing adoption of minimally invasive and noninvasive aesthetic procedures, rising adoption among
geriatric individuals, increasing public awareness about cosmetic procedures, the availability of technologically
advanced and user-friendly products, and the increasing demand for aesthetic treatments among men, are the
key factors driving the growth of the market.
• On the other hand, market growth is limited to a certain extent by factors, such as the clinical risks and
complications associated with medical aesthetic procedures and the increasing availability and adoption of
alternative beauty and cosmetic products.
• The medical aesthetics market is segmented into clinics, hospitals, and medical spas; beauty centers; and home care. The clinics, hospitals, and medical spas
segment is estimated to account for the largest share of the global medical aesthetics market in 2018.
• This end-user segment is also expected to be fastest-growing end-user segment, during the forecast period, owing to the increasing number of clinics and medical
spas and the high availability of financial and infrastructural resources with hospitals, including technologically advanced devices, trained staff, and skilled
professionals to perform aesthetic procedures. However, the Asia Pacific region is expected to witness the highest growth rate, during the forecast period.
• Medical spas combine medicine and aesthetics, to provide cosmetic treatments in a spa
ambience. Anti-wrinkle injections, botox injections, fine-line reduction, acne therapy, and fillers, are
some of the various treatments included in medical spas.
• Aesthetic medicine and cosmetic treatments for beauty enhancement and the growing wellness
trend in developed countries are driving this market. However, the high cost of medical spa
procedures is restricting market growth, especially in developing countries.
• Medical spas continue to focus on what brings patients though the door, namely injectables.
botox, dysport and fillers still dominate the industry. These are the treatments that people are
most curious about. Although it is easy for medical spas to become distracted by new treatments
and fancy machinery, the beating heart of the aesthetics industry. Injectables are the most reliable
way to attract patients, and with developing efficiencies and increasing innovation, they are seeing
practices make a lot of money from injectables.
• Longer-lasting botulinum toxin injections, which help stop muscle spasms when injected directly
into the muscle, are also a mainstay.
• Radio frequency-based skin resurfacing treatments can offer a lucrative entry point for spas into the non-surgical medical aesthetics field. While it’s possible that
they may interfere with microdermabrasion treatments, if medical spa offer customer, it’s worth considering the energy-based skin resurfacing treatments as an
alternative with less downtime and a more impactful result on skin health.
• Photorejuvenation treatments, one of the top requested non-surgical medical aesthetic treatments among male patients, utilize intense pulsed light (IPL) energy
to target a range of pigmentation and skin texture concerns, such as hyperpigmentation, melasma, port wine stains, hemangiomas, telangiectasias, venous
malformations, vascular lesions, and more.
• Body contouring treatments are starting to gain traction as an effective and less disruptive alternative to liposuction. The 86% of survey respondents noting
excess weight on any part of the body as one of their top aesthetic concerns. For many spa patients, excess fat may be a concern that goes hand-in-hand with
hair removal treatments when preparing for tropical vacations or summer fashions.
• Finally, skin tightening and wrinkle reduction treatments can be a simple upsell for spa patients concerned about premature signs of aging or those interested in
advanced anti-aging skin care systems. With 72% of patients admitting they are concerned about fine lines and wrinkles, particularly around the eyes, and a
15% increase in non-surgical skin tightening treatments YoY, the idea of investing in a quality skin tightening aesthetic machine is even more attractive.
• Cosmetic boom poses a challenge for aesthetic device market.
• Laser cosmetic treatments, such as hair removal and skin smoothing, have become
common menu items at spas, along with more traditional facial and body treatments.
Moreover, laser treatments are increasingly recognized as both more effective and
economical. The aesthetic laser market globally grew significantly from 2016 to 2017.
• This growth is driven by the factors like diode lasers have largely replaced gas lasers.
Diode lasers for aesthetic laser treatments are smaller and more energy efficient than
gas lasers, and diode laser technology benefits from continual advancements in the
semiconductor industry. Intense competition in the aesthetics industry drives demand for
new clinical instruments that take full advantage of the latest diode laser capabilities.
• Marriott International Inc. (Marriott) a hospitality service provider that operates hotels and restaurants. It operates,
franchises, and licenses hotels, residential and timeshare properties under several luxury, premium and select brand
names.
• The company offers accommodation, hotel reservations, timeshare vacations, flight and hotel packages, spa services and
car rentals services.
• The company operates loyalty programs, including Marriott Rewardsand Starwood Preferred Guest. The company’s
Founded in 1927
operations span North America, Europe, the Middle East, Africa, Asia-Pacific, Caribbean and Latin America. Marriott is
headquartered in Bethesda, Maryland, the United States. HQ
Bethesda, United States
• The company reported revenues of USD 20,758 million for the year ended December 2018, an increase of 1.5% over
2017. In 2018, the company’s operating margin was 11.4%, compared to an operating margin of 12.2% in 2017. In 2018, www.marriott.com
the company recorded a net margin of 9.2%, compared to a net margin of 7.1% in 2017.
Total Revenue
in USD billion, 2017-2018
Net Income
USD 20.78 billion
1.9 billion
20.78
As of December 2018
2017 2018
Sample Global SPA Market
6.8 MARRIOTT INTERNATIONAL INC. – SERVICES AND HOTEL CHAINS 28
Services:
Delta Hotels
Hospitality Services
Marriott Executive Apartments
Residential Properties
Marriott Vacation Club
Reservation Services
Gaylord Hotels
Advertising, Marketing, and Promotional
Tribute Portfolio
Services
Design Hotels
Accounting Services
Courtyard
Data Processing Services
Residence Inn
Brands:
Fairfield Inn and Suites
JW Marriott
SpringHill Suites
The Ritz-Carlton
Four Points
St. Regis
TownePlace Suites
W Hotels
Aloft
The Luxury Collection
AC Hotels by Marriott
EDITION
Element
Bulgari
Moxy
Renaissance
Protea Hotels
Le Meridien
Autograph Collection
• The company has over 30 brands, which are involved in hotel industry, most of the brands are also involved in spa industry.
W Boston operates Bliss Spa Boston features 5,800 square feet of tension-fighting
facilities, including a luxe nail lounge equipped with iPads, comfortable private lounges,
rhythm and blues tones and a legendary brownie bar.
1.085
0.862 1.118
1.085
1.118 2.266
2.266
3.217
13.072
15.427
The company's Renaissance Hotels opened the new Renaissance Bali Uluwatu The company’s Moxy Hotels opened Moxy Chattanooga Downtown and
M
Resort & Spa in Indonesia. announced plan to open Moxy Memphis Downtown, Moxy Atlanta Midtown,
May 2019 Moxy Nashville Downtown, Moxy Nashville Vanderbilt at Hillsboro Village,
Marriott is set to open the JW Marriott Maldives Resort & Spa on the Island of and Moxy Louisville.
Vagaru. The company opened JW Marriott Hotel Harbin River North in Northeast
Jul 2019 China.
Marriott launched Sheraton Grand Chennai Resort and Spa. Jan 2019
Aug 2018 The company’s Courtyard by Marriott announced plan to open approximately
The company opened the new Sheraton hotel in Manila, the Philippines. 30 hotels by the end of 2020.
The company introduced the new loyalty brand, Marriott Bonvoy, in replacement Nov 2018
of its current loyalty brands, The Ritz-Carlton Rewards, Marriott Rewards and The company’s European-inspired lifestyle brand, AC Hotels by Marriott
Starwood Preferred Guest (SPG). P opened AC Hotel Cape Town Waterfront in South Africa.
The company opened the Delta Hotels by Marriott Dallas Allen & Watters Creek The company opened Fairfield by Marriott Hotel in Busan, South Korea.
Convention Center in the US. Dec 2018
Jan 2019 The company opened Four Points by Sheraton in the Emirate of Sharjah.
The company announced plans to open 30 luxury properties in 2019. Feb 2019
The company’s brand, Renaissance Hotels opened Renaissance Cancun Resort
& Marina in Mexico. M I E P
• Operational Network
• Brand Portfolio • Cost Efficiency
• Market Recognition
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