The Global Wellness Institute (GWI) officially released its research report “The Global Wellness Economy: Looking Beyond Covid,” which revealed that the global wellness economy stands at $4.4 trillion despite pandemic disruptions. The future of the wellness market is incredibly bright and is predicted to grow 10% annually through 2025.
Certain market segments got hit harder with the effects of Covid shutdowns and travel restrictions including high-touch industries where finding employees, and Covid restrictions got hit hard in 2020: revenues fell by -39% (to $69 billion) and many resort and day spa establishments were closed for more then a year resulting in establishments dropping to 160,100 (with a loss of over 4,000 day & smaller resort spas). But most have reopened and the spa industry is expected to recover fast, with the market growing 17% annually through 2025. The key factor is what to invest in to attract existing and new customers to return and come visit your day and resort spas. There is a huge pent-up demand for traveling and returning to day and resort spas in the post-vaccinated “New World Order”.
Key pillars driving the growing health and wellness market:
- Better health
- Better fitness
- Better nutrition
- Better appearance
- Better sleep
- Better mindfulness
Growth Projections
These projections are for the years 2020-2025. The numbers provided refer to the 2020 market, 2025 market and average annual growth rate (AAGR).
- Wellness Tourism: $436 billion (2020), $1.1 trillion (2025), +21% (AAGR)
- Thermal Mineral Springs: $39 billion (2020), $90 billion (2025), +18% (AAGR)
- Spas: $69 billion (2020), $150.5 billion (2025), +17% (AAGR)
- Physical Activity: $738 billion (2020), $1.2 trillion (2025), +10.2% (AAGR)
- Mental Wellness: $131 billion (2020), $210 billion (2025), +9.8% (AAGR)
- Personal Care & Beauty: $995 billion (2020), $1.4 trillion (2025), +8% (AAGR)
- Healthy Eating, Nutrition & Weight Loss: $945.5 billion, $1.2 trillion, +5% (AAGR)
The total wellness economy will be $7 trillion by 2025. GWI predicts that the wellness economy will grow a robust 60% from 2020-2025, with the markets that took the greatest hit in 2020 (wellness tourism, thermal/mineral springs, spas) expected to see the highest growth projections. Sectors that showed positive pandemic growth, including mental wellness, are forecasted to see ongoing market expansion.
Technology trends in wellness
1. Death of the Static Spa Menu
Say goodbye to the traditional spa menu and replace it with personal one-to-one, touchless and innovative treatments that meet guests’ individual wellness needs.
2. High-Tech Touchless Treatments
For spa-goers who prefer a contactless experience, luxury spas are responding with high-tech touchless treatments, scientifically backed to address common wellness concerns like improving sleep, reducing stress & pain and boosting your immunity.
Wellness technologies have exploded as people become increasingly attuned keeping their bodies and minds healthy. Startups in this space raised a record-breaking $1.37 billion in the first three quarters of 2020.
Low-interest rates for equipment financing right now
Interest rates dropped in 2021 and remain at historic low levels due to the Federal Reserve lowering rates in response to Covid-19. Stimulus spending and SBA loans are good ways to invest in unattended, new wellness technologies to differentiate and update your spa!
Challenges that spas and salons are currently facing?
Without a doubt, the biggest challenge spas and salons are currently facing is being able to staff to meet the service demands we are currently seeing. As a recent Mindbody consumer survey showed, 78% of consumers said that wellness is more important in their lives than ever before, and they are realizing that spa & beauty treatments are an important component of self-care. And yet, most spas and salons are operating at 50-60% of their capacity, due to their inability to hire and train qualified staff.
You need to look at your business differently in the NWO. Invest in non-human based services. Don’t over-pay for limited Human Resources. Look for automated, optimized therapies like whole-body red light therapy from innovative leaders like Prism Light Pod.
Wellness centers that offer Prism Light Pod red light therapy have maximized their profit margins by bundling this touchless technology with other services. Clients love light pod sessions after a therapeutic massage, chiropractic adjustment or cryotherapy session. Whole-body red light therapy will speed up your clients’ healing process up to 10x faster and will also boost the benefits of other wellness treatments.
The Carillon Wellness Resort is a leader in selecting and implementing the industry’s best and most advanced Touchless technologies. They have weathered the effects of the Covid downturn much better than their industry peers and business is thriving again!
