The wellness SPA sector in India is growing at a CAGR of 15.5%

Wellness spas are growing very fast in India. Currently, there are over 15,000 wellness spas all over the country, growing at a CAGR of more than 15%, since 2010. The industry has come a long way with more than 15,000 spas nationwide. As per the research by The India Watch, the overall market size of spa wellness services in India crossed USD 2,700 million, growing at a staggering CAGR of more than 17%. 

Besides international demand, the domestic market is also thriving. Due to growing health awareness, a rise in disposable income, and a lifestyle change, the demand for spa and wellness services is now picking up amongst middle- and higher-income households in India. 

Mentioned below are the factors that are driving the growth of spas in India

• Urban youths alongside international tourists and business class (in their 40s and 50s) are the major demand drivers. 
• Indians are becoming more health conscious and want to lead a healthy, stress-free, and productive lifestyle, leading to increased demand for wellness services such as spas. 
• There is a general shift from medical wellness to everyday health, holistic approach, lifestyle changes, etc. 
• The focus is not just on looking good but also on feeling nice from the inside. 
• The demand for spas is just growing not only in Indian metros but also in tier 2 and 3 cities in India. 
• The concept of vacation is changing with a growing focus on rest, rejuvenation, and recharge. Similarly, many tourists now also connect vacations with lifestyle and dietary changes. 
• The initially unorganized industry is now seeing an entrant of bigger domestic and international players. PE investors are also piqued by the segment. 
• The wellness industry fits in very well with other related & adjacent sectors such as tourism, hospitality, F&B, cosmetic retail, healthcare, salon, sports, etc. 
• Previously spas were developed after the hotel was built. Spas and wellness were like line services, meant for revenue diversification. Today many hotels are designed, built, and operated pivoting around the idea of spa and wellness.  
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The Spa Business is also Evolving Vertically

Not only does the segment expand horizontally, but there is also a visible vertical transformation. Traditionally there are standalone spas that operate in malls, high streets, health clubs, etc. likewise most hotels & resorts (3 star and above) have one (or more) spas operational inside them. 

In addition, the segment is now also evolving with the emergence of destination spas, nature resorts, specialized wellness centers, etc. Spas' role is no longer limited to Ayurveda packages, Thai massages, hydrotherapy, deep tissue, and other wellness services. Spas are now extending to salon services offering a wide range of beautification and cosmetic packages including but not limited to basic beauty offerings, skin care, hair care, fragrance services, facials, nail care, tattoos, etc. 

Many spas are now evolving into alternative and curative healthcare centers offering nutritional products, dietary supplements, lifestyle & fitness packages, slimming & weight management services, and detox packages. Similarly, there is tremendous potential in niche segments such as cosmetic retail, alternative healthcare retail, yoga, mindfulness training, smoking cessation, etc. 

Feasibility services to start a Spa business in India 

The wellness and spa business in India will continue to evolve, both vertically as well as horizontally. While the old business models will expand and penetrate new markets, new ones will be introduced. We can see multiple wellness businesses as mentioned below

• Standalone spas and wellness centers with specific wellness and rejuvenation services
• Standalone spas and wellness centers with value-added services such as salons, cafes, health & fitness centers, etc. 
• Research suggests that presently on average less than 10% space is dedicated to retail sales at Spas. This will rise in the times to come. 
• The spa chain will expand while the market will see new entrants. Likewise, we will see more international chains (both Asian as well as non-Asian) exploring the Indian market. 
• Hotels and resorts will partner with organized and specialized spa providers to offer value-added services. 
• Hotels & resorts will build their in-house spa and wellness facilities. 
• Second home communities, holiday home projects, farm stays, etc will develop spa and wellness verticals to capture weekend tourists. 
• Medical centers and healthcare operators will partner with spa and wellness service providers to capture medical tourists. 
• Nature resorts and eco hotels centered around the core concepts of wellness, holistic well-being, and healthy lifestyle will increase in volume. 
• Other ancillary concepts such as naturopathy cottages, farm-to-table eateries, organic food cafes, etc. will see incremental growth. 

 

If you are an HNI, entrepreneur, PE investor, or a tourism business owner and looking for feasibility studies and/ or market research on Indian wellness centers, feel free to drop us an email at info@theindiawatch.com