June 1, 2007 - This report examines the fast growing spa or beauty/wellness market segment which, despite the inflation of the term "spa", is outperforming the professional beauty market. The market must adapt to this change in consumer demand because s pas are merely a further step in the decade-long trend towards “total beauty”

SPAS - A FURTHER STEP IN MARKET SHIFT TOWARDS “TOTAL BEAUTY” BUSINESS - HIGH GROWTH RATES TO CONTINUE

Growth rates in the spa market are much higher than in traditional and long established beauty and hair salons. Indeed the positive trends in the spa market contrast with the generally stagnant salon markets in many countries. Spa treatments meet a demand that was not satisfied in more traditional business models and spas are multiplying in number across Europe, the US and Asia

The spa concept is a relatively recent development in the professional beauty services channel. Spa packages the traditional beauty salon menu, (skin care, manicures, depilation, makeup), alongside other treatments (anti-stress, massages) to enhance wellbeing or wellness. Spas are merely a further step in the decade-long trend towards “total beauty” or “head to toe” businesses. Spas offer “total beauty” in that they provide a wider range of services than is on offer in traditional beauty and hair salons.

Confusion between old and new meanings of the spa term is compounded because in recent years the term “spa” is used to describe a very wide range of beauty businesses. The wide use indicates that the term is seen positively with many businesses eager to associate themselves with spas. However, this wide use renders the term meaningless. Spa can be used to describe anything from a luxury destination resort that offers everything from aromatherapy to Zen to a nail salon providing a basic manicure. While not all spas are spas, equally there are many established salons, fitness clubs and others which – although not called spas - combine beauty and wellness treatments and are riding the spa wave.

In this newly published report, the European Spa Market 2007, Diagonal Reports argues that spas are shaping a new concept of beauty because they have blurred traditional distinctions between beauty, well-being, and health. It forecasts continued strong growth for this 25,000 day- and stay- spa strong sector in five EU markets.

As the spa sector develops, the emerging “spa” market will include further variations on the spa concept, both in terms of facility type, and the treatments offered. Emerging spa concepts will cover medspas and spas in hospitals, dental practices, airport and department store spas.

This market shift towards “total beauty” has implications for the entire personal care and cosmetics market. As some traditional salons would not recognise this change in consumer behaviour and have seen sales stagnate, likewise, beauty product formulators, who do not adapt, may also find that their market considerably reduced.

Countries: Germany, France, Spain, Italy, UK
Published: 1st June 2007

Table of Contents

Size and Structure of the European Spa Market
Spa - Wellness – Pampering - Stress Relief - Preventative Medicine

TABLE OF CONTENTS 2
REPORT STRUCTURE 7
SECTION 1 REPORT SUMMARY 9
TABLE 1 The spa universe 9
The spa concept defined 9
Positive market 9
Why choose spas over competitors? 9
Spa satisfaction 10
Market drivers 10
Negatives 10
SECTION 2 - MAPPING THE SPA MARKET – CHANGING MEANINGS 11
What is the spa concept? 11
“Spa” - a useful working title 11
Scope of “spa” market 11
Spas change in traditional beauty services 12
New meanings generate confusion (salon or spa?) 12
Loose use of “spa” term 13
An inflated meaning 13
Tighter standards 13
SECTION 3 – MAPPING THE MARKET - NUMBERS OF SPAS 14
TABLE 2 The “spa” universe 14
Data comparability 14
TABLE/GRAPH 3 Distribution of Day Spas, and Stay Spas 15
TABLE/GRAPH 4 Distribution of spas by country 15
SECTION 4 – GEOGRAPHICAL CONCENTRATION OF SPAS 16
TABLE 5 Geographical distribution, salons (hair/beauty) 16
SECTION 5 - SPAS SIZES (EXAMPLES) 17
Difference day and stay spas 17
The typical beauty salon 17
“Micros” and data collection 17
TABLE/GRAPH 6 Beauty salon distribution by number of employees (Germany) 18
Treatment rooms per unit 18
Revenues per unit 18
New machines reduce space required 18
Clients – geographical area (radius) and population 19
Some US examples 19
SECTION 6 - SPAS - DAY SPAS (BEAUTY SALONS, HAIR SALONS, HEALTH AND FITNESS CLUBS)
20 TABLE/GRAPH 7.A The spa universe - day spas by type 20
TABLE 7.B The spa universe - day spas by type 20
The size of the sector 20
TABLE/GRAPH 8 Day spas and the total sectors 21
TABLE 9 The wider universe - beauty salons, hair salons, health & fitness clubs 22
Comparison with the USA 22
Spa related occupational groups 22
A new occupational category for the millennium 23
TABLE/GRAPH 10 Day spas - health and fitness club sector 24
TABLE 11 The health & fitness market (units and members) 24
SECTION 7 - STAY / DESTINATION SPAS (HOTELS, HEALTH RESORTS) 25
TABLE 12 The spa universe - the stay spas / destination spas 25
Health spas 25
Types of hotels with a spa 25
Hotel grading systems 26
TABLE/GRAPH 13 Stay spas - hotels of 4 or more stars 26
TABLE/GRAPH 14 Stay spas – health spas by country 27
TABLE 15 “Health spas/resorts” numbers of visitors 27
Health spas – prescription and insurance 27
SECTION 8 - SPAS - THE “EMERGING” SPAS 29
Medspas 29
Medspa drivers 29
SECTION 9 - SPA TREATMENT CATEGORIES 30
The main treatment categories 30
TABLE 16 Ranking of treatments in spas (day and stay) 30
Skin and face care 30
Massage 31
Mechanising massage? 31
Top treatments in hotel spas (France) 31
List of spa treatments 31
A bewildering range 32
SECTION 10 - REVENUES IN DAY SPAS (BEAUTY SALONS) 33
Caution about treatment data in spas 33
TABLE/GRAPH 17 Beauty salon revenues 34
TABLE/GRAPH 18 Distribution beauty salon income (%) services and product retail 34
TABLE 19 Beauty salon revenues (€) average per unit 35
SECTION 11 - SPAS - COUNTRY FOCUS 36
TABLE/GRAPH 20 France, the “spa” sector 36
TABLE 21 France - spa related businesses 36
TABLE/GRAPH 22 France, distribution of “spas” by type 37
TABLE 23 France - distribution of spa related market 37
TABLE/GRAPH 24 Germany, the “spa” sector 38
TABLE 25 Germany - spa related businesses 38
TABLE/GRAPH 26 Italy, the “spa” sector 39
TABLE 27 Italy - spa related businesses 39
TABLE 28 Italy - % breakout of “beauty sector” by type and revenues 39
TABLE/GRAPH 29 Spain, the “spa” sector 40
TABLE 30 Spain - spa related businesses 40
TABLE/GRAPH 31 UK, the spa sector 41
TABLE 32 UK - spa related businesses 41
STAY SPAS / HEALTH RESORTS (DESTINATION SPAS) 42 France destination spa spas / hotels with a spa 42
France size of hotel market 42
TABLE 33 France - breakout (%) of hotels by grade/class 2004 42
France water spas (thermal stations) 42
France insurance paid criteria 43
TABLE 34 France - health spas - ranking therapies by usage (2005) 43
Germany destination spas and health spas 44
TABLE/GRAPH 35.A Germany – health tourism ranked by type 45
TABLE 35.B Germany - health tourism ranked by facility type (2005) 45
TABLE 36 Germany - health resort guests (by type of facility, 2005) 45
Austria health spas 45
Italy health spas 46
Spain health spas 46
UK destination spas 46
SECTION 12 – SPAS (OPERATORS) - “THE TOP TEN” 47
The spas identified 47
TABLE 37 France - top day spas (18 names, unranked) 48
TABLE 38 France – top thalassos (10 names, unranked) 48
TABLE 39 France - top thalassos in hotels (14 names, unranked) 49
TABLE 40 Germany - top day spas (10 names, unranked) 49
TABLE 41 Germany - top hotel with water spa/thalasso (9 names, unranked) 50
TABLE 42 Italy - top day spas (unranked, 14 names) 50
TABLE 43 Italy - top stay spas (unranked, 15 names) 51
TABLE 44 Spain - top day spas (unranked, 16 names) 51
TABLE 45 Spain - top stay spas (unranked, 6 names) 52
TABLE 46 UK - top day spas (unranked, 24 names) 52
TABLE 47 UK - top stay spas (unranked 11 names) 53
TABLE 48 France - top health and fitness clubs (ranked, 6 names) 53
TABLE 49 Germany - top health and fitness clubs (ranked, 6 names) 53
TABLE 50 Italy - top health and fitness clubs (ranked, 5 names) 54
TABLE 51 Spain - top health and fitness clubs (ranked, 10 names) 54
SECTION 13 – SPAS - PRODUCT SUPPLIERS 55
Top suppliers and sales strategies 55
Distribution 55
Sales and service 55
The “true” spa brands 56
France 56
Italy 56
Spain 56
UK 56
TABLE 52 France - top suppliers (6 names) 57
TABLE 53 France - top suppliers, face care (8 names) and body care (7 names) 57
TABLE 54 Germany - top suppliers (rankings approximate, 11 names) 57
TABLE 55 Italy - top suppliers (ranked, 7 names) 58
TABLE 56 Spain - top suppliers (ranked, 10 names) 58
TABLE 57 UK - top suppliers (ranked, 11 names) 58
TABLE 58 UK - top suppliers, face care (7 names) and body care (8 names) ranked 59
SECTION 14 - INDUSTRY ORGANIZATIONS 60
FRANCE 60
GERMANY 61
ITALY 61
SPAIN 61
UK 61
SECTION 15 - APPENDIX I – CLASSIFICATION OF SECTOR 63
Table 59 EU Classification codes (EU ISCO-88 - service workers and shop and market sales workers)
63 TABLE 60 What can be counted as a “beauty service enterprise” 64
France INSEE definitions – “soins de beaute” 64
France definition - thermes 64
France definitions – salon coiffure 65
Definitions of spas (ISPA and other) 65
Loose use of term creates confusion 65
The different types of spas 66
Spa (USA definition) 66
Day spas / stay spas 66
Spa (UK definition) 66
Medspa – a changing definition 67
Medspa definitions 67
SECTION 16 – APPENDIX 2 - REGULATIONS 68
Regulations 68
Health resort 68
UK standards 69
SECTION 17 – APPENDIX 3 - GEOGRAPHICAL DISTRIBUTION 70
TABLE 61 France - geographical distribution, hair salons 2004 70
TABLE 62 Germany - geographical distribution, beauty salons 2004 71
TABLE 63 Germany - geographical distribution, hotel nights 2005 73
TABLE 64 Italy - geographical distribution, beauty salons 74
Italy regions with high concentration of health spas 74
TABLE 65 Spain - geographical distribution, beauty salons 2004 75
TABLE 66 France - geographical distribution, hair salons / health spas 75
TABLE 67 France - geographical distribution, health (thermal) spas (ranked by visits, 2005) 76
TABLE 68 Germany - spa and health resort towns (48 towns) 76
INDEX OF COMPANIES, BRANDS, SELECTED PUBLICATIONS, AND ORGANIZATIONANIZATIONS (REGULATORY, TRADE, PROFESSIONAL) 77
Symbols used in tables 80
Foreign characters 80
GSP formats 80
DR STATEMENT 81
Report
- Title: The European Spa Market 2007
- Published: 1st June 07
- Series: Spa Market Series 07
- Pages: 80
- Price: Euro3,750

Other spa (beauty and wellness) market reports published by Diagonal Reports include:

• Global Non-invasive Cosmetic Treatment Market 2007
  
• Medical Spa Market China 2007
  
• The Medspa Market US 2007
  

Diagonal Reports tracks the global professional beauty market. It publishes reports on the salon/spa, cosmetic medicine, fitness and wellness markets worldwide. www.diagonalreports.com