With a CAGR of 40% per year, the spa industry is the sub-sector with the most significant growth prospects among all personal care sub-sectors in India.
The growing awareness among the middle-class people, especially witnessing a different experience altogether, which was only a thing of luxury for the rich and royal clan is the only visible evolution of spa industry.
As per analysts, the Ayurvedic market is estimated to be at Rs. 4,500 crores at present. The herbal products form 6-7% of the overall personal care products market currently while the estimates are that it could grow to about 10% of the segment by FY20 as the trend accelerates.
With a CAGR of 40% per year, the spa industry is the subsector with the most significant growth prospects among all personal care subsectors in India.
According to industry experts, the market size of India's beauty, cosmetics and grooming market will touch 20 billion dollars by 2025 from the current level of 6.5 billion dollars.
There are other factors, which has resulted in the augmentation of the spa industry in recent years, which are:
The rising awareness of personal care products, growing disposable incomes, changes in consumption patterns and lifestyles and improved purchasing power of women, is one of the major factors in the growth of personal care industry.
Tracey Poole, Spa Director, Six Senses Spa, Jaypee Greens Golf and Spa Resort shares, “In India, there is a growing awareness and increase in the demand for spas providing lifestyle memberships with benefits that offer fully integrated wellness facilities. We have seen a growing interest in them from our male clientele.”
Tracey mentions, “Ayurveda in India is popular and we are finding that our international guests have a great desire to experience them. Indian guests often like to experience international treatments, like Swedish Cupping and various Thai Therapies.”
The market which was earlier women-centric has started concentrating on male grooming and is coming up with large numbers of unisex salons.
Himanshu Gupta, General Manager, Sales & Marketing B2B Events, Sumansa Exhibitions added, “The overall beauty and personal care market in India is estimated at Rs. 74,700 crore by retail sales value and the personal care industry in India has been expanding at 13% year-on-year, far surpassing the overall economic growth rate.”
India’s consumer base has grown to multiple times in recent years due to the improved style of living. People now can afford to pamper themselves and the option is no more limited to the rich and royal clan or with the women only, the male counterparts too have started pampering themselves.
This has attracted a lot of international players to invest in Indian market by providing franchising opportunities. A lot of domestic players too have successfully made their mark in the business.
Shahnaz Husain said, “With over 700 spas predicted to open doors in the next two years, there's no doubt that the spa industry in India is growing fast. With the extended global spa economy now estimated to be worth $255 billion. India will continue to be a hot spot for medical tourists that seek travel services that incorporate diverse wellness packages, including those that couple medical procedures with spa indulgences, Ayurvedic treatments or cultural immersion experiences.”
Existing players in the market are adopting franchisee route for expansion. The growth showcased by the industry has also caught the interest of private-equity and venture-capital investors who are funding expansion plans for businesses in the segment.