Good news for spas is that the Global Wellness Institute (GWI) predicts the wellness market will grow 10% annually to $7 trillion by 2025, up from the current figure of $4.4 trillion.
The GWI research notes that the wellness smarket grew to a record $4.9 trillion in 2019 and then fell to $4.4 trillion in the pandemic year of 2020. But with the pandemic ushering in a major shift in values for consumers, governments, and the medical world – where prevention and wellness take on far greater importance – the GWI believes that the future of the industry looks bright.
Says Ophelia Yeung, GWI senior research fellow. “When we analyse how different wellness markets performed in the last year, it’s natural to want to compare them and label winners and losers. But there is no question that wellness – as a concept, as a lifestyle priority, and consumer value – is a big winner from the pandemic.”
According to the report, markets with the highest growth projections (wellness tourism, thermal/mineral springs and spas) are those that took the greatest hits in 2020. Sectors that showed positive pandemic growth, including wellness real estate and mental wellness, are forecast to see powerful, ongoing market expansion.
States the report: “From 2017 to 2019, the spa industry was growing at a fast 8.7% annual rate and reached $111 billion in revenues across 165,714 spas – with a big jump in hotel/resort spas (from 48,248 to 60,873). The high-touch industry got hit hard in 2020: Revenues fell by -39% (to $69 billion) and spa establishments dropped to 160,100 (with a loss of over 4,000 day spas). But the industry is expected to recover fast, with the market growing 17% annually through 2025, and more than doubling revenues (to $150.5 billion).
“In terms of wellness tourism, the market grew 8% annually from 2017 to 2019 (reaching $720 billion) and then took a major hit in 2020. The market shrunk -39.5% to $436 billion, while wellness trips dropped from 936 million to 601 million. The impressive 21% annual growth rate projected for wellness tourism through 2025 reflects new traveler values (a quest for nature, sustainability, mental wellness) as well as a period of rapid recovery from pent-up demand in 2021 and 2022.”
To read the full report click here Research Report-The Global Wellness Economy: Looking Beyond Covid - Global Wellness Institute