Spa Services Industry Profile

Companies in this industry operate spas and wellness centers. Major US companies include destination spa chains Canyon Ranch and Golden Door; massage clinic franchise Massage Envy and Steiner Leisure, which operates spas on cruise ships and at resorts and hotels; and day spa franchise Woodhouse Day Spa. Major companies based outside the US include Absolute Spa (Canada); Keio Takaosan Onsen Gokurakuyu (Japan); and Polska Grupa Uzdrowisk (Poland).

The spa market is poised to grow by $ 25.48 billion during 2020-2024 progressing at a CAGR of 4% during the forecast period, according to Businesswire. Among countries, the US is the largest spa market in the world based on revenue, followed by China, Germany and Japan. Rising average incomes in many emerging markets, combined with increasing awareness of health issues, are expected to drive growth.

It is projected that total revenues of the corporate wellness service industry will be around $18.3 billion and there are over 22,000 Spa locations in the US, according to Statista.

COMPETITIVE LANDSCAPE

Demand for spa services is driven by personal income, wellness tourism, and demographic trends. The profitability of individual companies depends on efficient resource use and effective marketing. Spa visits and revenue per visit are key industry metrics. Larger companies have some economies of scale in marketing and purchasing. Small companies compete by offering unique services, catering to a local market, and delivering a superior customer experience. The US ...