Spa Services
Description
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, 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 global spa services market is forecast to reach about $363 billion by 2035 at a compound annual growth rate (CAGR) of 10% over the forecast period of 2025 to 2035, according to Future Market insights (FMI). Surging demand for relaxation, wellness, and meditation activities, combined with the increasing demand of spa services for healing and pain management, especially by elderly, will likely drive market growth. North America, Asia Pacific, and Europe dominate the market and expected to have the highest growth.
The US fitness and recreational sports centers industry, which includes spa services in the US has a revenue of about $33 billion and an estimated 37,000 spa locations across the US.
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 fitness and recreational sports centers industry, which includes spa services, is fragmented: the top 50 companies account for about one-third of sales.
PRODUCTS, OPERATIONS & TECHNOLOGY
The spa and wellness industry gets majority of their revenue from fitness and recreational sports center membership (about 65% of revenue) and fitness evaluation and personal fitness training services (about 10% of revenue). Other revenue comes from other recreation, sports, and fitness services (about 25%). Day spas include hair and nail salons with "spa" in the name that may offer a few traditional spa services. Medical spas focus on services provided by health care professionals, such as Botox injections and laser hair removal. Destination spas offer lodging and a specific health regime, such as weight loss or detoxification programs.
The most popular spa services are massages, facials, salon services, and manicures and pedicures. Other services include movement classes, body scrubs or wraps, and hydrotherapy. In addition to services, most spas also sell skin treatment and other health and beauty products. Destination spas often are known for more exotic and expensive services and tend to focus on mind-body health, fitness and nutrition, cuisine, and ancillary services.
Typical facilities consist of a reception area, changing rooms, and multiple treatment rooms. Some spas may offer a separate lounge area for customers to use between treatments. Profitable spas typically have at least a quarter of their square footage as revenue-generating space, including treatment rooms. Spas may range in size from 4,000 square feet for day spas to 130,000 square feet for resort spas.
Basic day spa equipment (manicure/pedicure chairs, massage tables) costs between $500 and $10,000. Hydrotherapy equipment ranges from $2,500 for a steam cabinet up to $50,000 for a high-end hydrotherapy tub. Specialized equipment for medical treatments, such as laser hair removal or microdermabrasion (wrinkle reduction), creates additional capital requirements. Standard spa treatments, such as massages, facials, and manicures, are provided by massage therapists and cosmetologists, who may be full-time, part-time, or contract employees. Licensed health care professionals such as plastic surgeons or other medical doctors are required to provide some medical treatments.
Customer service is critical, as spa clients seek an experience that is relaxing and stress-free. Spas invest in amenities, décor, and staff training to "pamper" clients and create a soothing environment.
The global spa services market is forecast to reach about $363 billion by 2035 at a compound annual growth rate (CAGR) of 10% over the forecast period of 2025 to 2035, according to Future Market insights (FMI). Surging demand for relaxation, wellness, and meditation activities, combined with the increasing demand of spa services for healing and pain management, especially by elderly, will likely drive market growth. North America, Asia Pacific, and Europe dominate the market and expected to have the highest growth.
The US fitness and recreational sports centers industry, which includes spa services in the US has a revenue of about $33 billion and an estimated 37,000 spa locations across the US.
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 fitness and recreational sports centers industry, which includes spa services, is fragmented: the top 50 companies account for about one-third of sales.
PRODUCTS, OPERATIONS & TECHNOLOGY
The spa and wellness industry gets majority of their revenue from fitness and recreational sports center membership (about 65% of revenue) and fitness evaluation and personal fitness training services (about 10% of revenue). Other revenue comes from other recreation, sports, and fitness services (about 25%). Day spas include hair and nail salons with "spa" in the name that may offer a few traditional spa services. Medical spas focus on services provided by health care professionals, such as Botox injections and laser hair removal. Destination spas offer lodging and a specific health regime, such as weight loss or detoxification programs.
The most popular spa services are massages, facials, salon services, and manicures and pedicures. Other services include movement classes, body scrubs or wraps, and hydrotherapy. In addition to services, most spas also sell skin treatment and other health and beauty products. Destination spas often are known for more exotic and expensive services and tend to focus on mind-body health, fitness and nutrition, cuisine, and ancillary services.
Typical facilities consist of a reception area, changing rooms, and multiple treatment rooms. Some spas may offer a separate lounge area for customers to use between treatments. Profitable spas typically have at least a quarter of their square footage as revenue-generating space, including treatment rooms. Spas may range in size from 4,000 square feet for day spas to 130,000 square feet for resort spas.
Basic day spa equipment (manicure/pedicure chairs, massage tables) costs between $500 and $10,000. Hydrotherapy equipment ranges from $2,500 for a steam cabinet up to $50,000 for a high-end hydrotherapy tub. Specialized equipment for medical treatments, such as laser hair removal or microdermabrasion (wrinkle reduction), creates additional capital requirements. Standard spa treatments, such as massages, facials, and manicures, are provided by massage therapists and cosmetologists, who may be full-time, part-time, or contract employees. Licensed health care professionals such as plastic surgeons or other medical doctors are required to provide some medical treatments.
Customer service is critical, as spa clients seek an experience that is relaxing and stress-free. Spas invest in amenities, décor, and staff training to "pamper" clients and create a soothing environment.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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