Have you ever thought about entering the Wellness Industry? Or are you currently in it and wondering if you should reinvest in the industry? From these stats, it sure looks like it’s healthy and fairly recession proof.
“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 2013, the market size of the global wellness industry amounted to more than 3.4 trillion U.S. dollars. The beauty and anti-aging segment was by far the largest, constituting approximately one third of the overall 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 and pain relief to relaxation and stress relief, or 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.”
(Information from Statista.com)
“The US hair care services industry includes about 86,000 establishments (82,000 beauty salons; 4,000 barber shops) with combined annual revenue of about $20 billion. Major companies include Regis, Ratner Companies, Premier Salons, and Sport Clips.
Demand is driven by demographics and population growth. The profitability of individual companies depends on technical expertise and marketing skills. Large companies enjoy economies of scale in purchasing and marketing. Small companies can compete successfully by offering superior service or securing favorable locations. The US industry is highly fragmented: the 50 largest companies generate about 15 percent of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products are hair cutting, hair coloring, nail care, skin care, and merchandise sales. A typical salon offers haircutting and styling, coloring, shampooing, and permanents. Some salons also offer nail care, facial treatments, makeup, bikini waxing, massage, tanning, and other types of spa treatments but the lower volume of demand for such specialty services often makes them uneconomical. Sales of hair care products are an important revenue source for many salons, providing from 5 to 15 percent of revenue. Gross margins are higher for hair care products than for services.
Revenue growth is expected to improve over the next five years, rising at an average annual rate of 3.2% to $58.7 billion by 2019. This will be driven by increases in per capita disposable income and declining unemployment over the five-year period. Higher disposable incomes will also lead hair salon customers to spend more on higher-value services such as manicures, pedicures, facials, hair modification treatments, and massages.”
(Information from: www.sbdcnet.org)