Health to wealth: Rising popularity and a wider range of services have boosted industry revenue

The Health and Wellness Spas industry’s revenue has grown over the past five years. Demand for the industry’s services has increased due to a rising focus on health and appearance. Revenue growth has also come despite volatile consumer sentiment caused by economic uncertainty over the period. Spas have become popular with a wider client base, including men, corporate users, couples and families. Industry revenue is expected to rise at an annualised 3.0% over the five years through 2017-18, to $432.7 million. This includes anticipated revenue growth of 2.2% in 2017-18.Despite strong demand for industry services over the past five years, industry profitability has dropped more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • Increasing competition has caused profit to decline slightly over the past five years
  • High margins have attracted new entrants, boosting participation over the past five years
  • Discretionary income growth and busier lifestyles are projected to sustain demand for spas
  • Industry Report - Industry Investment Chapter

    The Health and Wellness Spas industry exhibits a low level of capital intensity. For every dollar invested in capital expenditure in 2017-18, an expected $14.34 will be spent on wages. The industry relies heavily on labour across most operations, with staff required for basic customer service, treatments, cleaning and administration. The industry uses a minimal amount of technology, with most equipment requiring staff operation.Despite the reliance on labour, the industry's capital intensity has trended upwards over the past five years. A shift in the industry's services has brought about this change. The expansion of destination spas and the luxury nature of many day spas have forced operators to invest heavily in their premises. App...purchase to read more.

    Additional Insights for the Health and Wellness Spas Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Health and Wellness Spas Industry are

  • Highly trained workforce
  • Use of specialist equipment or facilities
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Consumer sentiment index and Expenditure on recreation and culture in the Health and Wellness Spas industry impact industry performance..

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    What's in this report

    What is the Health and Wellness Spas Industry?

    Industry firms offer spa services such as massages, facials and body treatments. The industry includes day spas, spas located at resorts, hotel spas and medical spas.

    Industry Products
  • Day spas
  • Medical spas
  • Destination spas
  • Industry Activities
  • Destination spa services, including retreat programs
  • Medical spa services, including cosmetic surgical procedures
  • Day spa services, excluding both retreat programs and surgical procedures
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer sentiment index
  • Expenditure on recreation and culture
  • Real household discretionary income
  • Domestic tourist visitor nights
  • Female population aged 18 and older
  • Health consciousness

  • Current Performance
  • Healthy revenue growth
  • Health and appearance trends
  • Changing customer base
  • Chart: Revenue Growth

  • Industry Outlook
  • Healthy revenue growth
  • Health and appearance trends
  • Changing customer base
  • Table: Health and Wellness Spas Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Health and Wellness Spas Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Hotels and Resorts
  • Consumers

  • Key Selling Industries
  • Construction
  • Cosmetics, Perfume and Toiletries Manufacturing
  • Furniture and Floor Covering Wholesaling

  • Products & Services
  • Day spas
  • Destination spas
  • Medical spas
  • Chart: Health and Wellness Spas Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 30 to 39
  • Consumers aged 40 to 59
  • Consumers aged 18 to 29
  • Consumers aged 60 and above
  • Consumers aged under 18
  • Chart: Major Market Segmentation for the Health and Wellness Spas Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Marketing
  • Rent
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Health and Wellness Spas

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Health and Wellness Spas Industry

  • Industry Globalization
    Endota Pty Ltd,
  • Table: Endota Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Health and Wellness Spas Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Health and Wellness Spas Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Day Spa
  • Day spas offer a range of spa services that typically last no longer than a five-hour period.
  • Destination Spa
  • Destination spas consist of establishments that offer accommodation services in conjunction with spa treatments. Some offer retreat packages.
  • Medical Spa
  • Medical spas are establishments that operate with or under the supervision of at least one licensed physician.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Health and Wellness Spas market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

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    • Find out about key industry trends
    • Identify threats and opportunities
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    This report on Health and Wellness Spas:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Health and Wellness Spas market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Health and Wellness Spas, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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