Spa Services Market Size, Share & Industry Analysis, By Facility Type (Day, Hotel/Resort, Medical, and Others), By Service (Massage, Beauty/Grooming, Physical Fitness, and Others), By End-User (Women and Men), and Regional Forecast, 2024-2032

The global spa services market size was valued at USD 87.63 billion in 2023. The market is projected to grow from USD 99.79 billion in 2024 to USD 375.54 billion by 2032, exhibiting a CAGR of 18.02% during the forecast period. Europe dominated the spa services market with a market share of 36.29% in 2023. Moreover, the spa services market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 70.24 billion by 2032, driven by rising preference for relaxing therapies during travel to surge market size growth.

Spa services, which are still considered a luxury, have gradually started expanding its roots toward the middle-class population. The service literally means ‘treatment through the use of water’ translated from the Latin word 'Solus Per Aqua'. Such services originated primarily in Europe in ancient times as it was believed that water can cure any type of disease. 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 the product demand in the near future.

Due to the spread of the COVID-19 pandemic, governments of many countries imposed lockdowns and social distancing measures, which resulted in the temporary closure of spas and wellness centers. Moreover, restrictions on non-essential businesses, including spas, significantly disrupted operations and led to revenue losses for businesses in the spa-service market. Besides, concerns about close physical contact and shared spaces led to a decline in consumer demand for spa services, impacting the revenue and profitability of spa businesses. However, with limited access to professional spa services, consumers increasingly turned to at-home wellness practices and DIY treatments to maintain their well-being during the pandemic.

Spa Services Market Trends

Technology-enabled Facilities 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 customers to easily book appointments as well as provide hassle-free transaction options. For instance, in 2021, ISM Spa partnered with Spa Space, a company delivering SaaS software solutions for improving customer engagement and satisfaction. This partnership enabled the company to improve its ability to implement turnkey spa management practices and deliver custom solutions to its customers.

Besides, 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 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. For instance, ISM Spa’s partnership with Spa Space company resulted in 25% increase in its guest satisfaction level, lowering the time-consuming administrative tasks.  

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

Spa Services Market Growth Factors

Wellness Tourism Trend to Bode Well for Market Growth

Growing lifestyle-related concerns and hectic lifestyle has 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 2020, average spending on wellness tourism-related trips in Latin America reached USD 1,365.84.

‘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 spa services market growth.

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

Growing Popularity among Teenagers and Baby Boomers to Foster Product Demand

The growing popularity of beauty services among teenagers is positively impacting the market. Teenagers avail such 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 years old guests 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. Furthermore, the Global Wellness Summit 2020 released its report on ‘10 Wellness Trends for 2020’ in January 2020, wherein it identified wellness needs among aged old generation as a significant aspect. And therefore, it considered ‘Aging Rebranded: Positively Cool’ as one of its 10 forecast trends for 2020.

RESTRAINING FACTORS

High Cost, Regulations, and Employment Issues to Limit Market Growth

The high cost associated with spa services, including treatments, therapies, and memberships, can act as a barrier for many consumers. Expensive pricing structures may deter individuals from accessing spa services frequently or trying new treatments. Therefore, the higher cost of most of the packages which are not affordable to the mass population can limit the market growth. The spa-service industry is also subject to various regulations and compliance requirements, including health & safety standards, licensing, and certifications. Besides, stringent regulations may also restrict innovation and expansion within the market, thereby hindering growth opportunities. Furthermore, 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 the customer visits as well as pose challenges in employment due to safety issues of working at such centers.

Spa Services Market Segmentation Analysis

By Facility Type Analysis

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

Based on facility type, the market is segmented into day, resort/hotel, medical, and others (destination, mineral springs, and others). Day type facility offers services that can be completed within a day and is expected to dominate the segment over the estimated period. Facilities under 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 high-class population. On the other hand, medical spa services offer specific treatments in the presence of healthcare professionals to give solutions over ailments as well as therapeutic bathing that aid in the healing process from several disease types. 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 Analysis

Massage Segment to Dominate due to its Traditional Usage

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

By End-User Analysis

Women Segment to Dominate the Market Owing to Growing Product Popularity among Women

Based on end-user, the market is segmented into men and women. Women are the primary users of personal care services, owing to which the women segment holds a major share of the market. In addition, increasing women consumers’ concerns of skin aging and rising demand for the anti-aging skincare services among them are accelerating the segmental revenues globally. According to the surveyed data presented by World Bank Group, an international financial institution, the global women population aged 65 years and above increased from 3.89 billion in 2020 to 3.92 billion in 2021.

However, the increasing trend of grooming among men population is likely to propel men segment growth. Several companies are coming up with the centers dedicated only for 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

The market size in Europe was valued at USD 31.80 billion in 2023. Europe is expected to hold a dominant spa services market share, owing to increasing disposable income of the populace. Increased spending on health owing to increased awareness regarding wellbeing in the region also contributes to greater market penetration. Moreover, growing travel and tourism activities in European countries, such as France and Germany, is further driving the regional market growth.

According to data presented by the VISAS Association, in 2021, Germany recorded a 2.7% increase in hotel overnight stays compared to 2020. In addition, the number of overnight stays in the Netherlands reached 4.7 million in 2021.

The North America market is majorly driven by a rising number of luxurious facilities offering spa services and growing demand for full body massage and beauty treatments among women in the U.S. and Canada. As per a surveyed data published by the American Massage Therapy Association (AMTA), in 2021, 46% of American female consumers and 21% of American male consumers got a massage service at spa setting, compared to 21% and 25%, respectively in 2020.

A significant share is held by the Asia Pacific owing to the growing number of middle-class population in the countries as well as an increasing number of massage, sauna, as well as mineral spring facilities in the region. As per data published by the Global Wellness Institute (GWI), thermal/spring spa services are mainly concentrated in Asia Pacific, with Asia Pacific and European regions together accounting for 94% of the global number of thermal/spring spa establishments in 2020. In addition, the number of establishments for spa services in Asia Pacific increased from 48,679 in 2018 to 49,876 in 2020.

South America & the Middle East & Africa held 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 the demand for these services in the region. Furthermore, rapid urbanization rate and continual development of the salon facilities offering skincare treatment is further supporting the product demand in these regions. For instance, in 2021, Emirates Palace Spa partnered with The Elixir Clinic, a global wellness services provider clinic to add a bespoke collection of VitaDrip infusions in its spa treatments with the facility located in Abu Dhabi, UAE. The infusions are formulated with minerals, anti-oxidants, and antiaging essentials that enhance the users’ energy level, hydration, and immunity. Therefore, rapid urbanization in the region will boost the market growth.

List of Key Companies in Spa Services Market

Customized Packages and Remodeling Activities to Aid Players for Attracting Guests

The 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 spa services 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 type of personal care centers. For instance, in March 2023, Hyatt Regacy’s Hill Country Resort and Spa facility invested USD 50.0 million to renovate its 300 acres San Antonio, U.S.-based facility. Therefore, strategies such as offering customized packages, creation of attractive décor, and improved digitalization are adopted by players to gain competitive advantage.

LIST OF KEY COMPANIES PROFILED:

• Hyatt Hotel Corporation (U.S.)


• Four Seasons Hotel Limited (Canada)


• Marriot International, Inc. (U.S.)


• Hilton Hotels & Resorts (U.S.)


• OneSpaWorld Holdings Limited (U.S.)


• Siam Wellness Group (Thailand)


• InterContinental Hotels Group Plc. (U.K.)


• Massage Envy (U.S.)


• Kempinski Hotels S.A. (Switzerland)


• Brenners Park-Hotel & Spa (Germany)

KEY INDUSTRY DEVELOPMENTS:

• November 2022 - Monomoy Capital Partners LP, a private equity firm, acquired Nordic Products Inc., a West-Michigan, U.S.-based hot tub manufacturer’s 111,000 sq. ft. facility. The facility operates in the affordable-luxury residential massage hot tub industry in North America and Europe. The acquisition would help the company expand its business in America.


• September 2022 - Arch Amenities Group, a global provider of amenity, meeting, and wellness services, acquired Innovative Spa Management, a U.S.-based spa clinic management company, and others such as Privai LLC and Spa Space to adopt dynamic technology platform for its operations management and increase its clientele base. 


• January 2022 - Monomoy Capital Partners LP, a New York, U.S.-based financial institution, acquired Artesian Spas and Marquis Hot Tubs to start supplying spa management-related platform solutions’ services and spa facilities in the U.S.


• September 2021 - Zenoti, a Telangana, India-based salon management software company acquired SuperSalon, a U.S.-based company to increase its business presence in the U.S.


• May 2021 - Hand & Stone Massage and Facial Spa, a U.S.-based franchise chain providing massage services acquired Canadian 24-unit Massage Expert franchise to add facilities to its existing 32 locations in North America.

REPORT COVERAGE

The global market research report provides an in-depth analysis of the market and highlights crucial aspects such as prominent companies, service types, facility locations, and end-user areas. Besides, the report provides insights into the spa services industry trends and highlights significant industry developments. In addition to the aspects mentioned above, the report includes several factors that have contributed to the market growth in recent years.

Report Scope & Segmentation