The global wellness sector is experiencing unprecedented growth. According to the Global Wellness Institute‘s (GWI) report entitled ’Global Wellness Economy Monitor 2023‘, the wellness economy has surpassed EUR 5.2 trillion for the first time and is expected to reach EUR 7.9 trillion by 2027. This exponential growth represents a major turnaround after the impact of COVID-19, highlighting great opportunities for investors and entrepreneurs in the SPA and wellness sector.
The two main highlights to consider when looking at this market are:
- High per capita spending: analysis of global data shows that annual per capita spending on wellness is equal to that on healthcare. In many cases, it exceeds spending on clothing, footwear, hotels and restaurants.
- The impact on global GDP: the wellness economy contributes 5.6% of global GDP, indicating that about 1 in 20 dollars spent by consumers is on wellness products and services.
Why invest in the spa and wellness sector
With unprecedented economic growth and ever-expanding demand, the spa and wellness sector represents a highly profitable investment opportunity. We explore the key reasons that make this market so attractive to entrepreneurs and investors seeking new horizons in the world of wellness.
- Steadily growing demand: more and more people are investing in improving their physical and mental wellbeing, fuelling a growing demand for spa services, holistic treatments and fitness programmes.
- Portfolio diversification: investing in the sector allows you to broaden your customer base, attracting an audience interested in spa treatments, advanced nutrition and natural products.
- Global trend towards health: growing awareness of the importance of health has led to increased investment in the sector, making it particularly attractive to entrepreneurs and investors.
- High revenue potential: with effective marketing strategies and optimised management, spa and wellness facilities can generate significant profits in both tourist and urban locations.
- Continuous innovation: the sector is constantly evolving with new technologies and improved treatments, offering opportunities to differentiate and grow.
- Customer loyalty: by offering high-quality services, you can create a loyal customer base that promotes the company through word of mouth.
Growth of spa-related sectors
It is not just the core spa business that is thriving; related sectors are experiencing significant increases, amplifying the opportunities in the global wellness landscape. Let’s look at how these complementary areas are contributing to the robust growth of the entire sector.
- Traditional and complementary medicine: between 2020 and 2022, the sector grew by 15%, reaching a value of EUR 483 billion.
- Global spa market: currently valued at EUR 97 billion, with growth prospects in the coming years.
- Spas: with a value of EUR 43 billion, full recovery is expected by 2027, reaching EUR 145.1 billion.
The leading wellness markets in the world
According to the report ‘The Global Wellness Economy: Country Rankings’, the five leading markets are:
- United States
- China
- Germany
- Japan
- United Kingdom
These countries account for 59% of the global welfare economy. The Top 25 also includes nations such as Switzerland, Iceland, Sweden and several other European countries, highlighting the importance of the sector on the continent.
New post-pandemic Market Balances
The pandemic radically transformed the global wealth landscape, creating new dynamics and opportunities in international markets. Almost all major markets experienced strong growth immediately after the pandemic. In Europe, for example, the UK and the Netherlands even surpassed the size of the pre-pandemic market with increases of 120%.
Impact on GDP and opportunities in real estate
The wellness economy not only influences consumption habits but also has a tangible impact on the Gross Domestic Product (GDP) of many nations. Moreover, the rise of affluence as an added value in real estate is generating significant opportunities for investors and developers. We explore how these trends are shaping the future of wellness-oriented real estate.
- Significant contribution to GDP: in Europe, the wellness economy contributes 5.8% to GDP. Countries such as Austria (9%) and the UK (7.3%) show even higher percentages.
- Growth of wellness real estate: the wellness-oriented real estate sector now accounts for about 3.0% of the annual global construction output. The growing demand for spaces that promote physical, emotional and community well-being requires specialised consultants to maximise returns and stand out in the market.
Investing in the spa and wellness sector offers significant opportunities for entrepreneurs and investors. Not only does it allow you to benefit from a rapidly growing market, but it also helps to promote healthy lifestyles and improve people’s quality of life.
Collaborating with industry experts is crucial to make the most of these opportunities and to ensure an optimal return on investment.
Sources:
- Global Wellness Institute, ‘Global Wellness Economy Monitor 2023’, November 2023.
- Global Wellness Institute, ‘The Global Wellness Economy: Ranking of countries (2019-2022)’, January 2024.
