Spa Business_handbook 2019-2020

Page 112


Growing up Wellness is now a US$4.2tn global industry, and spa was the fastest growing sector from 2015 to 2017, according to the latest research from the Global Wellness Institute


he global wellness industry has grown 12.8 per cent, from a US$3.7tn (€3.2tn, £2.8tn) market in 2015 to US$4.2tn (€3.6tn, £3.2tn) in 2017, according to the 2018 Global Wellness Economy Monitor. The new data, by the Global Wellness Institute (GWI), shows that the wellness economy increased by 6.4 per cent annually, nearly twice as fast as global economic growth at 3.6 per cent. The research is based on 10 markets (see Diagram 1) and all of these – from fitness & mind-body to wellness tourism – gained much traction. The GWI says this “provides fresh evidence that wellness remains one of the world’s biggest and fast-growing industries.”

Global spa economy Valued at US$119bn (€103.1bn, £90.6bn), the global spa economy comprises spa facility revenues, now worth US$93.6bn (€81.1bn, £71.3bn) yearly; and also spa education, consulting, associations, media and event sectors, now US$25.2bn (€21.8bn, £19.2bn). While the spa economy is the third smallest out of all wellness markets, it’s grown the fastest in the last two years, with revenues increasing by 9.8 per cent. This 112 spa business HanDbOOK 2019 – 2020

Speaking at the summit, research: “Since 2007, the number of spas and spa facility revenues have doubled,” says co-author Katherine Johnston. “Spa revenues have gone up by 7.2 per cent annually, and that’s more than double the GDP growth rate in that time. And this growth is especially remarkable if you remember that this decade began with years of recession.” The main drivers of the spa industry, according to the report, are rising incomes, the rapid growth of wellness tourism, and an increasing consumer propensity to spend on all things related to wellness. Report co-authors Johnston (left) and Yeung unveiled their findings at the 2018 Global Wellness summit

is significantly higher than the 2.3 per cent pace of growth from 2013 to 2015. The number of spas jumped from 121,595 in 2015 to more than 149,000 in 2017, with spas employing nearly 2.6 million workers. Interestingly, hotel and resort spas brought in the most income and have now surpassed day spas and salons as the industry’s revenue leader.

Where in the world? Asia-Pacific is home to the largest number of spas, the report shows, and also added the greatest number of new facilities from 2015 to 2017. Europe led in total spa revenues in 2017 (see Diagram 2). Across the world, the spa industry remains quite concentrated in five countries – the US, China, Germany, Japan and France – which, when combined, account for 48 per cent of global revenues. Meanwhile, the top 20 countries represent 77 per cent of the

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