The Health & Wellness Industry is growing! Take a look at some of the trends highlighted in the 2022 Health & Wellness IBIS Report.
Adult women under 65
- Emphasis on female health and beauty in society, women have long dominated the clientele of health and wellness spas.
- 52% of women tend to spend $80 or more on treatments, compared with 43.0% of men.
Adult men under 65
- Males have become a target demographic for spas.
- 41% of spas are offering special prices & packages to men in an effort to cater to an untapped market. Increased offerings for services tailored specifically for males have boosted men’s comfort levels at spas.
- The incorporation of spas into fitness facilities has aided growth in this market over the past five years, and adult men are now estimated to account for 33% of industry revenue.
Seniors
- Growth in the number of senior citizens has outpaced some population growth, this segment has expanded over the past five years.
- Senior citizens are a prime demographic for spas due to the high rate of health and medical issues in late age. Older consumers view spas as a way to mitigate and prevent health problems.
- 14% of spas offer special packages that cater specifically to seniors.
Teenagers and children
- 1 Many spas offer special pricing & packages to teens (29.0% of spas), children (12.0% of spas) and families (15.0% of spas).
INCOME & REVENUE
- Spa operators will benefit from growth in per capita disposable income, fostering increased consumer spending on discretionary and luxury goods and services.
- 4 Estimates that the number of industry establishments has increased to 21,848 locations during the five-year period.
- 2 Revenue for medical spas and the number of medical spas in operation is expected to continue growing over the next five years.
- Industry profit is expected to rise to 8.9% in 2027 with continued employment gains. As disposable income levels increase, consumers are more likely to spend more per visit.
- High-traffic areas will generate a higher number of walk-in clients.
- Spas that offer a wide range of services will develop a competitive edge because customers are more likely to purchase a wider variety of services if they are offered in the same location.
- Operators are now likely going to compete based on precautionary safety measures to ensure the cleanliness of their facilities.
- Spa-goers tend to be upper middle-class or wealthy. 52.1% of total revenue comes from consumers with incomes over $100,000. Individuals with incomes between $50,000 and $99,000 are estimated to account for 20.2% of total revenue.
- Generating repeat clients and favorable feedback through word-of-mouth recommendations and online reviews is key to developing a steady revenue base.
- The underlying drivers influencing demand for industry services will increase as the overall economy continues to rebound from the COVID-19 pandemic.
Full IBIS Report: Health – Wellness Spas IBIS 2022
1 International Spa Association (ISPA) 2018
2 Consumer Expenditures Survey by the Bureau of Labor Statistics (BLS)
3 IBIS World