Are you looking to get into spa and salon business and want to open a day spa, salon, wellness center or a skin care clinic then in this research report about Spa and Salon industry in the USA, you will find everything in detail from spa and salon industry size, revenues and projected growth.
The Salon, Spa and Wellness industry revenues in the United States has already surpassed $16.3 billion and is expected to reach US $20 billion by 2020.
This report also covers the global spa, salon & wellness market size and revenues in detail.
How to start a Spa, Salon or Beauty Clinic Business
There are several ways you can start a Spa, Salon and skin care clinic.
- You can either you can buy a franchise of a reputed Spa, Salon or hair salon chains. All you have to do is pay money upfront to the main Spa, Salon or skin care clinic company/brand for the privilege of opening and operating a business using their established name. The advantage of buying a franchise is that it gives you an instant reputation and its resources like advertising campaigns.
- You can also look to buy an established Spa, salon or Skin care business from someone who is looking to sell an already established business or is looking forward to retire from the business or has damaged the business and has applied for dissolving the brand due to bankruptcy.
- Another option is to establish your own Day Spa, hair salon or business business by putting your own money, your own ingenuity and your own optimism that hard work and talent will win out.
- There’s another highly profitable model in the Spa, Salon and skin care business that has picked in the recent years globally is the express outlets. These express outlets provide customers with quick skin care Facials, Hair wash, Haircuts, and massages. All you have to do is a get a small space rented in a busy shopping Mall or a busy street and get basic equipments for providing express Spa, Salon and Skin care services.
- If you have a substantial amount of money to put in the business or you have partners that can put in money, then Booth rental salons’ is also good idea to get into.
These are owned by a person (or persons) who is basically the landlord for a group of hairstylists and other service providers working under his or her roof. As the landlord, the salon owner/operator collects a flat monthly fee from the service providers, for which they have the privilege of using salon space and non removable equipment like a styling station and chair.
The renters, in turn, are considered independent contractors who must provide their own supplies (everything from hair dryers to perm rods), set their own hours, book their own appointments and have their own key to the building. As you can see, there are huge spa business opportunities to make money in 2019.
Before you start planning on how to start a day spa, salon or a skin care clinic business let’s take a look at the market size of the industry.
Market Size, Revenues and projected growth of the Wellness Industry in the USA from 2019 – 2023
According to Statista, Spa industry has grown steadily since 2008 in the United States with revenues for 2017 estimated at around US $17.5 billion. This marks an increase of US $700 million compared to 2016 revenues. As of May 2015, the industry employed almost 360,000 people, around 164,500 of whom worked part-time.
Approx. 187 million visits were made by people to the 21,770 spas in the United States in 2017, three million more compared to 2016. However, the total area used for the United States spa industry has shrunk slightly since it peaked at 81 million square feet in 2009. As of May 2012, 77 million square feet in the United States is devoted to spa facilities.
The spa industry can be categorized under the wellness market, which also includes segments such as beauty and anti-aging products and wellness tourism. The spa industry segment of the global wellness industry was worth an estimated 563 billion U.S. dollars in 2015.
In comparison, beauty and anti-aging, which was the biggest segment in the industry, generated revenue of almost 1 trillion U.S. dollars. Wellness tourism is a growing sector within the industry and it is predicted to be worth around 680 billion U.S. dollars in 2017. Some of the most popular destinations for wellness vacations among health travelers from North America in 2014 were Hawaii and the Caribbean.
Wellness is about making healthy lifestyle choices and maintaining one’s well-being both physically and mentally. In recent years, more people around the world have begun to recognize the importance of wellness – a trend which has seen the value of the industry increase year-on-year. In 2015, the market size of the global wellness industry amounted to more than 3.7 trillion U.S. dollars. The beauty and anti-aging segment was by far the largest, constituting around one trillion U.S. dollars. The various segments making up the wellness industry are diverse and include, among others, healthy eating and weight loss, fitness, alternative medicine and the spa industry.
The spa industry in the United States generated 16.3 billion U.S. dollars in revenue from more than 21 thousand locations in 2015. Reasons for seeking spa treatments ranged from medical reasons and pain relief to relaxation and stress relief, or even just to indulge and pamper. During a national survey by market research company Nielsen Scarborough in spring 2016, 13.71 million people said that they had used day spa services within the past 12 months.
Another segment of the wellness industry is corporate wellness services, which generate 7.3 billion U.S. dollars in revenue in 2015, this was forecasted to reach 11.3 billion U.S. dollars by 2021. The industry is comprised of companies which provide workplace programs to improve or support the health and wellbeing of their employees. The majority of these programs are company funded, although some are carrier funded or paid for by employee contributions. In 2016, the most common services in the United States were health risk assessments, nutrition and weight management and smoking cessation services.
Beauty & Wellness industry market size globally
According to a research report published by Zion, global spas and beauty salons market was valued at around USD 128.59 billion in 2017 and is expected to reach approximately USD 190.81 billion in 2024, growing at a CAGR of slightly above 5.80% between 2018 and 2024.
Spas, beauty salons and Wellness Centers market has a huge potential comprising of both men and women beauty and personal care products and services.
In today’s urban lifestyle, consumers are looking for places offering beauty and wellness services which can relieve stress from the busy lifestyle. Spas and beauty clinics market continues to gain traction because of the services and advice offered by the wellness professionals and beauticians related to skincare and hair care. The millennials prefer spa and salon services which help them rejuvenate and relax them from the daily and hectic lifestyle.
The rising demand for healthy and stress free lifestyle is one of the major factor fueling the growth of the wellness market.
The various types of spas and customized wellness services offered to the consumers include medical spas, day spas, mineral spring’s spas, mud baths, and ayurvedic spas, among other types.
The products used in the salons or spas are made from natural and synthetic ingredients amalgamated with other herbal products or ingredients to keep the body and skin healthy. Increasing disposable income, growing focus towards personal appearance, and availability and use of advanced techniques in spa technology are expected to boost the growth of Spa, Salon and wellness industry in 2019.
Owing to the availability of personalized services, countries such as the U.S., France, Germany, the UK, and Japan are among the top contributors to the spas and salon market in terms of revenue and operations.
The high adoption rate of spas and salons services by teenagers are also triggering the growth of this market. The geriatric population is also opting for these services keeping in mind the benefits offered by the spas and salons market such as pleasure, peace of mind, and fitness to its end users. The factor hindering the growth of this market is the high cost of skilled professionals operating in spas and salon industry.
One of the major reasons that limits the growth of the Spa and Wellness industry are the expensive products, solutions, and services costs charged by the spa and salons.
The launch of customized services, products and technological innovations in the spas, beauty salon and wellness industry is expected to offer tremendous opportunities for growth in this year and many more years to come.
European Salon and Wellness Industry market size
Europe is expected to hold the highest market share in the forecast period in global spas and beauty salons market owing to rising tourism industry and growing demand from middle-income groups. Eastern European countries and Baltic countries are contributing significantly to the European tourism business. This is expected to promote the growth for hotel and resort spas and destination spas segment revenue in this region.
Middle East, Africa and Indian Beauty industry trend:
Whereas the Middle East and Africa, regions are anticipated to observe highest CAGR development in the coming years owing to the continuously growing tourism rate in the region. In August 2017, Indian beauty and wellness brand VLCC and Saudi conglomerate Cigalah Group signed a partnership worth Dh30 million, to open six wellness centers in the kingdom of Saudi Arabia in next three years.
Asia Pacific Region beauty industry Market Size
The Asia Pacific is projected to be among the fastest growing region during the forecast period, owing to the young population who prefers to invest in health and wellness services, personal appearance, and activities offering peace of mind and relieving stress.
Owing to increasing migration of rural population to metropolitan cities and rising disposable income of people, countries such as China, Japan, and India are expected to be the leading adopters for spas and beauty salons services in this region.
North American Region Salon and Beauty Business Market Size and Industry trends
North American region is expected to hold a significant share of the overall Spa and Wellness market in terms of revenue due to increasing adoption of beauty salon services and products by the consumers and professionals in skincare clinics and spas.
Changing lifestyles of the urban population and increasing health and skin problems of geriatric population in the region is fueling the growth of global spas and beauty salons market.
United States is home to some of the largest multinational companies operating in the spa and beauty industry globally, therefore numerous companies are focusing on partnerships, investing in research and development activities to come up with advanced and innovative products and services for the consumers. Since, desire to look good and focus on personal appearance is growing among individuals, companies do not want to let go these opportunities and are launching new and improved beauty products everyday.
For example, L’Oreal USA acquired Maly’s Midwest and Marshall salon services to extend its coverage of American hair salon centric services to its customers.
Spa, Salon and Wellness industry is all set to grow in the coming years considering a growing demand for beauty and wellness services in USA as well as globally.
As an entrepreneur you can definitely make a fortune in spa and beauty business in USA and other markets if you can provide quality services at affordable costs. Spa business opportunities are set to grow in the years to come and we hope the above guide to wellness industry and Spa business opportunities will help you start your spa business.
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