Spa Industry Rebounds as Wellness Evolves

BATHHOUSE

As wellness becomes all-encompassing, spas are in high demand.

IRL R&R

According to the International Spa Association (ISPA), 2021 was a bounce-back year for spa services:

  • American spas generated $18.1B in 2021 revenue, a 50% YoY increase.
  • Spa visits reached 173M, up from 124M the year prior.
  • Revenue per visit grew 7%, averaging $104.50.

Bear in mind, many spas weren’t at full capacity in the first year of the pandemic. Yet, according to the Global Wellness Institute, wellness tourism (+21%), mineral springs (+18%), and spas (+17%) are projected to be the fastest-growing segments of the wellness economy over the next three years.

In particular, the global spa industry will hit $150.5B by 2025. And that’s because self-care is becoming central to personal well-being.

Spa as Wellness

Explaining the trend, the ISPA’s own definition of a spa echoes what has become the modern pursuit of personal wellness.

“Spas are places devoted to overall well-being through a variety of professional services that encourage the renewal of mind, body and spirit.”

Now, from recovery clinics to communal bathhouses to pampering membership clubs, feeling good has become the new looking good.

  • After raising $140M last December, Restore Hyper Wellness committed to 100 new locations this year.
  • Othership, a Toronto-based hybrid studio offering guided sauna, ice bath, and breathwork sessions, just signed a lease for an NYC location.
  • Brooklyn-based BATHHOUSE, a communal spa/healthy restaurant concept, is expanding to Manhattan.
  • Therabody will open four more Reset whole-body wellness/retail shops this year.

Takeaway: In the past, spa visits were often reserved for American vacations. As wellness tourism continues to rise, spa bookings will benefit. But, with holistic renewal becoming an everyday pursuit, wellness spas are set to capitalize closer to home.

Breaking down the business of fitness and wellness

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