THE TRANSFORMATION ECONOMY

The world of luxury is changing. Global consciousness is growing and consumers want to be moved, engaged, inspired and fulfilled. 

There is growing recognition that  hospitality needs to reach the next level of evolution. People feel increasingly drawn to live their lives in concord with their values. Material is no longer enough.

The definition of luxury today is becoming less typical. In short,  ‘luxury status’ is revolving less around things and more significantly around how we feel, from a myriad of perspectives.

In the recent ‘Experience Economy’ businesses and brands curated memorable encounters, thus the ‘experience’ became the product. 

With the next evolution, referred to as the ‘Transformation Economy,’ consumers seek more than the mere experience. They crave something authentic and meaningful — an experience that is in some way transformative, resulting in the improvement of physical or emotional well-being.  

Brands that can offer a meaningful route to soulful luxury will be the ones that stay ahead of the game. Consumers want to be moved, engaged, inspired and fulfilled. They want to undergo an actual sense of transformation.

Brands need to deliver an emotional experience that will enhance the lives of their customers. It’s no longer enough to offer a product or service; brands must frame their offer within the idea of enhancement.

In the future consumers will choose products and services based on how they will transform:

• their appearance, health and fitness 

• their lives - relationships, work life or wellbeing

• their ways of thinking - politically, socially, morally and self

Wellness travel will see a shift from a consumptive to a contribution mindset.

Smart businesses realise that they are the catalyst for something profound.

This content was gathered through online research and in particular credit goes to Soul Luxury Consulting.

FEM WELLNESS TRENDS

There are growing wellness trends specific to women and in our research we collated these trends below.

LUNAR 

Conversations about Mercury in retrograde and your Saturn return are becoming as mainstream as horoscopes. Expect monthly Moon Reports to grow in popularity, as more people consult the planet as a guide for personal growth—and a thought-starter for dinner party conversations. More than ever women are using the moon as a guide for reflection and personal growth. They are also using the moon as a guide to lunar cycles and rhythms within the body. 

BIO HACKING FOR WOMENS WELLNESS 

Biohacking may have started with men in Silicon Valley but female wellness pioneers are increasingly claiming the movement as their own, adapting and creating optimisation practices for women’s biology. 

HORMONAL HEALTH

There is now a growing understanding of the role hormones play in every system of the body - affecting everything your heart health to your sleep quality. And with a new wave of startups offering at-home hormone testing, which was once only available at a doctor’s office, women can now have direct access to the health clues their hormones are providing.

Because of this, the general market for home testing is predicted to grow by three- to four-fold over the next few years. More women are seeking to arm themselves with information about their specific physiology before they make an appointment with their doctor.

BEAUTY 

The ‘Beauty and Anti-Aging’ sector accounts for over $1 trillion dollars of the $4.2 trillion global wellness economy. 

There is a new aesthetic in town and it’s health and wellness – no matter your shape or size. We all know beauty and wellness go hand in hand – and ‘aspiring to beauty’ can be one of the key motivators for keeping physically, spiritually and mentally fit. 

Wellness is remaking the beauty industry. The evidence for the merging of wellness and beauty shows the positive effects that diet, exercise, sleep and stress reduction, can have on our outward appearance.

The traditional “cosmetic repair” model has given way to a beauty approach that revolves around prevention and the forestalling of aging by creating health and wellness from the inside.

Estimated to become a $7.4 billion global industry by 2020 ‘nutricosmetics’ (ingestible supplements specifcally designed for beauty) that promise and clinically prove to provide miracles with your hormones, immune system, skin and hair are growing in popularity.

Consumers want authentic clean beauty (organic skincare, sustainability) and care deeply about the ingredients and ethos of the products they choose to put on or in their bodies.

FEMINIST WELLNESS 

The women’s empowerment-meets-wellness trend takes so many crucial forms. We’re seeing a surge in new women-only clubs, co-working spaces, and collectives, designed for women to meet, network, support each other and be active together–served up with much wellness. We’re seeing a new brigade of women doctors, technologists and designers spotting unaddressed issues for women’s bodies and lives and creating an explosion of new “FemTech”.

THE SELF HELP INDUSTRY

The self-help industry is an $11 billion dollar industry. Regardless of their income, people are willing to pay money for self-help books, videos, seminars and retreats in hopes it will improve the condition of their lives. Considered “recession proof,” this industry continues to grow. 

The U.S. self-improvement market was worth $9.9 billion in 2016. It is forecast to post 5.6% average yearly gains from 2016 to 2022, when the market should be worth $13.2 billion.

This “industry,” has many sub-segments to deliver this knowledge: infomercials, holistic institutes, self-help books & audiobooks, motivational speakers, websites, apps, public seminars, personal coaching, weight loss programs, and training organisations.

Traditionally, the Baby Boomers have been the main consumers of self-improvement. They still are an important group, but the tide is shifting. Millennials now are the largest population group and represent the future for this market, but there are few experts now catering to them.

More content (such as MP3 downloads, e-books, webinars, online courses, “academies,” “universities,” and masterminds, etc.) is being delivered online, and self-help apps are starting to take off.

Personal coaching is the 2nd fastest-growing industry worldwide. The latest ICF and PriceWaterhouseCoopers’ global coaching study found that the U.S. coaching market was worth $955 million in 2015. Marketdata expects this to rise to $1.02 billion in 2018.

It’s harder to get consumers to take a flight to a seminar or retreat, get three days off from work, and pay the registration fee and hotel stay. This costs thousands. Consumers today want 24/7 access to personal development programs, at home, with no travel. Especially Millennials, who generally have limited budgets. That’s why the internet has become the preferred distribution method. It’s also good for gurus, who can reach more people more cost-effectively and more profitably.

MYSTICISM & SPA

Having previously managed a destination spa that featured many esoteric services, which were always booked out, I know that mysticism has a place in spas and wellness resorts. The information I garnered from my online research supports my theory… mysticism is a growing trend.

The growing trend toward “spiritual but not religious” has spiked in recent years, surprisingly resonating with the very same demographic most likely to reject the notion of a god — liberal academics. Horoscopes, aura readings and tarot decks are common in the homes of many. 

Today, with the internet offering unlimited access to information — cultural, historical and scientific — spirituality is becoming freckled with modern nuance. Wrapped up in ancient methods and novel technology, it’s reaching new (albeit splintered) heights alongside the burgeoning wellness movement. Contemporary generations may be shifting further from the pew, but there is a notion that seems to linger in even the most secular people — a longing for something less corporeal. While Westerners may be leaving their family traditions for a variety of reasons, it seems that the desire for a spiritual outlet still burns brightly.

Originating in the USA, a new aesthetic is moving over to Europe which, at first glance, reveals a desire for magic, mysticism and spirituality. Behind this movement lies the deep yearning that many people feel for a sense of orientation. In the new mystic movement, millennial women refer to themselves as “witches” and regard themselves as part of a self-empowering feminist movement. There is also a counter concept to organised religions; a new commercial spirituality – the hipsterisation of esotericism. Over the last few years, the hippie festival “Burning Man” has been fashionable, while the Peruvian transcendence ritual with the liana Ayahuasca is growing in popularity, as are freshly printed tarot cards, modern crystals and catwalk fashion, which are all finding their way into the world of mysticism. It is still too early to say if this trend will have a long-lasting impact on accessing spirituality or if it is a lifestyle phenomena.

THE LOHAS CONSUMER

LOHAS is an acronym for Lifestyle of Health and Sustainability and describes a type of consumer that actively seeks out healthier and more sustainable lifestyle, product and service options. 

These consumers buy based on values, rather than price, and they are important in the context of spa and wellness services and products. So here we share some of our findings from the online research we have gathered.

LOHAS consumers cut across all demographics and are not defined by age and gender – from young to old, male to female, urban to suburban. They are defined by their values: concern for the planet, authenticity, personal fulfilment, holistic health, and social conscience.

Once a niche market, (LOHAS) consumers represent 23% of the USA population, 29% of the Japanese population and 33% of the New Zealand population. Other countries are following this trend. 

The LOHAS consumer is a $355 billion market in the USA alone and growing at 10% per year. It is a $546 billion market worldwide.

Categories include; Food & Nutrition, Mind & Body, Buildings & Energy, Home Life, Transport & Leisure, Work & Money

LOHAS Mind & Body includes; Complementary and alternative therapies such as naturopathy, acupuncture, and massage, alternative health and fitness such as Yoga, Pilates, and Reiki, personal development books, seminars and DVD’s, natural and organic personal care and health and beauty products.

“Wellness, for more people, is evolving from rarely to daily, from episodic to essential, from a luxury to a dominant lifestyle value. And that profound shift is driving powerful growth.” - Katherine Johnston, senior research fellow, Global Wellness Institute 

n Australia the LOHAS market includes almost 4 million people, about one-fourth of the adult population, and is impacting nearly every sector of the economy. In 2007 the LOHAS market was worth $12 billion and by 2015 was worth $26 billion - projected to reach $30 billion by 2017.

Nutrition has been a starting point for a lot of people. The retail value of the Australian Certified Organic food market has grown from $200 million in 2002 to over $1.4 billion today.

Since 2007, Mobium’s Living LOHAS report, has been researching consumption decisions by Australian adults and the social trends that drive them. It segments consumers into four groups – Leaders, Leaning, Learners and Laggards. As of 2017, Leaders have grown from about 7% to 14% of the Australian adult population. 

A ten-market study of the LOHAS consumer market in the Asia-Pacific region was conducted in 2011. While only 17% of the Asia market surveyed were “LOHAS followers” as compared to 19% in both Europe and the US, the proportion of “drifters” (29%) and “naturalites” in this part of the world is higher than that in the other two regions. In fact, in almost all the ten countries surveyed, including China, Singapore, Philippines, Indonesia and Australia, the “drifters” form the largest proportion of the consumers. 

The spread of the LOHAS phenomenon across Asia was nothing short of swift. As usual, Japan, quick in picking up trends, was the first in the region to take it, adapt it, and they made it into something more than what it was in the US. So from its Colorado origins in 1999, the lifestyle went to Japan (2001), South Korea (2002), Thailand (2003), Hong Kong, Shanghai, Australia and Singapore (2007). The rest of the South-East Asian nations are following suit.

Clearly the LOHAS consumer presents an important market opportunity to the spa and wellness industry.

THE FUTURE OF SPA

Considering wellness is the new “black” and “well-thy” is now a status symbol among consumers, the market for wellness cannot be considered separate from leisure and luxury; a concept that has evolved from ownership to experiences that offer convenience, choice, value, and the ability to share with others.

The growth of these markets is evident in Australians spending far more on experiences, outpacing spending on either discretionary or basic needs consumption. Over $132 billion was spent on leisure and entertainment in the year to March 2017 - an increase of $16 billion per annum over the five years since March 2012, and far more than was spent on either discretionary commodities ($107b) or groceries ($103b).

The global wellness economy is booming too, growing 12.8% in the past two years to reach a market value of $4.2 trillion4, and is expected to continue accelerating by 17% until 2025. The wellness industry now represents 5.3% of global economic output.

“Wellness, for more people, is evolving from rarely to daily, from episodic to essential, from a luxury to a dominant lifestyle value. And that profound shift is driving powerful growth.” - Katherine Johnston, senior research fellow, Global Wellness Institute

Australia’s personal spending on health has mirrored this trend, reaching $28.6 billion in 2016, with an estimated $4 billion of this spent on alternative health therapies like spas, traditional Chinese medicine, mind-body exercise and nutrition. As the publics growing embrace of alternative therapies starts to meet traditional medicine in a meaningful way, further opportunities will continue opening up.

Comparing the spa industry with the tech industry, the spa world has moved slowly to respond to cultural influences and changing customer perceptions. Despite best efforts, much of what has been passed off as innovation in the rapidly expanding spa and wellness industry has been more about clever marketing and getting attention than it has been about true innovation, causing the current day spa model to become unsustainable.

There is an opportunity for a new model of day spa, that draws on its historical roots of social bathing, where it reaches a number of consumer segments across the wellness, leisure and luxury industry clusters, so as to become a highly desirable status “hangout”.

Where ever there is a problem there is an opportunity, which is why we have been working behind the scenes to create a new model of Spa that meets the problems head on and harnesses the opportunities with both hands.

• Current offerings for wellness remain fragmented, with most players having a limited number of centres that offer disconnected programs, amenities, and itineraries.

• Existing larger scale models are marketed on natural resources, operating in remote areas with low accessibility for frequent use.

• Considered a luxury and perceived as too expensive by many people, even those with strong desire.

• Oriented at the individual - a singular, rather than social experience - and many of the emerging social trends cannot be embraced.

• Focused on beauty and pampering rather than wellness - Current models are built on telling people, even subtly, that they aren’t good enough.

• Appeal to a limited demographic and audience - Only 25% of day spa goers are men (usually visiting with their partner).

• Limited to traditional business opening hours and appointment times.

• Massage accounts for 75% of treatments booked, yet day spa model is built upon

  delivering beauty therapies, often delivering a poor experience bacause of the global shortage of quality therapists (spa/beauty therapists cannot deliver a quality remedial massage).

• A typical day spa does not offer a enough value for a membership program and is capped according to the number of therapy rooms it has.

• A wellness mindset is starting to permeate the global consumer consciousness, affecting people’s daily decision-making.

• People are more willing than ever to pay for experiences that have the potential to transform the way they live, work, and play.

• The understanding that beauty is more than “skin deep” is gradually seeping into the global consciousness.

• Emerging trends in wellness are placing culture (the zeitgeist) at the heart of the experience.

• Consumers crave something authentic and meaningful — an experience that is in some way transformative, resulting in the improvement of physical or emotional well- being.

• Healthy over hangover: Consumers across the board are seeking transformational experiences, connection and community. They want to feel happy, healthy and fulfilled.

• A growing Australian middle class presents a market opportunity to bring wellness services to an unserviced market. Millenials and younger generations are continuing to spend less money on buying things, and more on doing things.

• Nearly 30% of the adult population is committed to green and healthy living, a market share that has almost doubled in the last four years.

• Experience customers have come to expect a unified online and offline experience.

Research compiled by Sonja Sorich - Director of Spa Wellness Consulting and Emily King - PR Specialist

Emily King is a marketing specialist with extensive experience in the development and delivery of PR & marketing strategies, supported by strong leadership and project management. Emily has lived in the UK and Europe for five years where she discovered saunas, hammams and thermal spas as a form of relaxation while working in a very demanding role in fashion PR. She had also travelled to Japan many times and was drawn to the Onsen tradition for its relaxing, therapeutic and social benefits.

Returning to Australia in 2014 to be apart of the ‘ideas boom’, Emily has worked on the commercialisation of some of Australia’s most exciting local and international tech start-ups. Having a keen curiosity in innovative businesses, Emily brings a balance of critical thinking together with a personal interest in creative pursuits, lifestyle and culture. Well versed in trends and market opportunities, Emily brings a fresh and innovative approach to Spa Wellness projects.

A GUIDE TO SPA AWARDS

Showcasing a collection of spa awards is a wonderful testimonial for your spa and wellness business. We researched all of the awards that pertain to our industry and share the top 4 awards below.

WORLD LUXURY SPA AWARDS 

Spa’s operating within the luxury niche market and with high service delivery can participate. Luxury spas can self-nominate or be nominated by guests or industry experts in order to participate in the World Luxury Spa Awards™. Nominations are then evaluated by a selected global panel of independent spa consultants in 144 countries. Successful nominations are then be invited to participate in the Awards. Further to each official entry the World Luxury Spa Awards arrange an ‘official’ and/or ‘mystery’ site visit to judge the spa. 

Cost: The participation fee per spa is 430 GBP for one category and 215 GBP for every other category. Opening date for 2018 registration is 20 April 2017. 

Other: Winners in a particular year will automatically be nominated to participate the following year. Each year 20 nominated luxury spas will win a complimentary entry into the World Luxury Spa Awards. These successfully evaluated nominations will be randomly selected and will be notified once the official registration poll before the particular year has closed. 

Website: http://www.luxuryspaawards.com/spa-award-procedures

WORLD SPA & WELLNESS AWARDS 

Register your interest online and once submission is open you will receive an invitation to enter via the online portal. Submit entry well before the deadline in June. 

 Finalists will be notified and are then required to provide treatments for a Mystery Shopper and an Official Visitor free of charge. If you are entering the Spa category this may include an overnight stay in your property as well. Shortlisting and visits take place between August and November. Winners are announced in February at The World Spa & Wellness Convention, London.  

Website: http://worldspawellness.com/site/TopTipsForEnteringTheAwards

WORLD SPA AWARDS 

Entry to these awards is free of charge and is entered via an online portal. Your entry is then checked and vetted to ensure your nomination qualifies for the selected category. World Spa Awards makes the final decision. Call for entries is between 15 February to 15 June. Finalists are announced on 16 June. Worldwide voting is open to the public and industry professionals (which bear 5 times the weight of a public vote) from 23 June to 13 October. The awards are announced at the annual World Travel Awards on Saturday 9thDecember in Vietnam. Booking to attend this gala event can be made via the website. 

Website: http://worldspaawards.com/voting-rules

 ASIA SPA AWARDS 

AsiaSpa Awards do notrequire a registration/admission fee. The nomination period is during April. Visit the website in mid-April to see the nominations opening and details. 

 The judges will be listed on the AsiaSpa website by late June or early July. Nominees are encouraged to approach the judges directly in order win their vote. AsiaSpa does not connect the judges with the nominees.

The shortlist and voting process are handled by the panel of judges and lawyer during early September to early October. The shortlist will then be announced on the AsiaSpa website by early to mid-October. The annual AsiaSpa Awards ceremony and announcement will take place in Hong Kong during Cosmoprof Asia on November 14-17, 2017 and then winners will be published in the Nov/Dec magazine issue. 

Visit the AsiaSpa Awards website to reference the previous awards and their categories and criteria’s. Read the criteria thoroughly to ensure you are well suited to the category. See attachment. 

Website: http://www.asiaspa.com/awards2016/categories/

LIFESTYLE MEDICINE

Integrative Medicine is an approach that puts the patient at the centre of care and addresses the full range of physical, emotional, mental, social, spiritual and environmental influences that affect one's health and wellbeing. It utilises conventional western medicine diagnostics and treats with evidence-based complementary functional medicine and alternative therapies.

Functional Medicine views the body as one integrated system and addresses the underlying causes of ill health, using a systems-oriented approach and engaging both you and your team of practitioners in a therapeutic partnership. It is a personalised approach to preventative care and wellbeing with an understanding that every individual is different; genetically and biochemically unique. 

Through the lens of functional scientifically based medicine the question posed is: “What is the cause of this health challenge?” and “What can be done to restore function?

Lifestyle Medicine is a new branch of evidence based medicine in which comprehensive lifestyle changes (including nutrition, physical activity, stress management, social support and environmental exposures) are used to prevent, treat and reverse the progression of chronic diseases by addressing their underlying causes. The underlying cause of disease can stem from a variety of imbalances. 

The importance of healthy lifestyles in preventing and treating chronic disease is undisputed. Retreat environments provide a unique living laboratory where all aspects of lifestyle can be controlled and studied. Retreat experiences provide a unique opportunity for people to escape from unhealthy routines and engage in healthy practices and activities that lead to immediate and sustained health benefits. 

A health retreat creates an environment with a daily schedule of habits that support optimal wellness. Guided by experts from various modalities, guests are holistically supported towards harmony and homeostasis on all levels - physical, mental, emotional and spiritual. 

The body is intelligent and has the capacity for healing and immense vitality when given the right care - this is what a health retreat can provide.

A health retreat or wellness centre provides a holistic living laboratory that supports; 

Gut Health : Emotional Wellbeing : Detoxification : Nutrition : Exercise : Mental Health : Brain Health : Sleep & Rest : Relationships : Spiritual Wellbeing : Social Connection & Community : Digital Detox : Clarity of Purpose

Specific therapies, treatments and consultations address; 

Stress & Anxiety : Inflammation : Digestive Dysfunction : Hormonal Imbalance : Structural Imbalance : Physical Toxicity : Cognitive Health : Toxic Emotions : Trauma : Immune System Imbalance 

I have been an advocate for health retreats since my early 20s and I have witnessed the power and transformation that can take place when staying on retreat. There is no better investment than that of your health, and as one wise yogi said - “health is wealth and peace of mind is happiness”.

A GUIDE TO ECO CERTIFICATIONS

Wellness lifestyle real estate is poised for growth that is faster than the overall real estate sector over the next decade, driven by many factors ranging from ageing societies to the changing desires of younger generations, and the need to protect the environment and open space. 

Here are some eco-certifications that you might want to pursue when developing your project.

WELL CERTIFICATION : https://www.wellcertified.com

WELL works in conjunction with global green building ring systems like LEED, BREEAM. GreenStar and Living Building Challenge to enhance building performance for human health and the environment. 

LEED CERTIFICATION : http://www.usgbc.org/leed

LEED (Leadership in Energy and Environmental Design) is the most widely used third-party verification for green buildings globally. Projects pursuing LEED certification earn points across several areas that address sustainability issues. Based on the number of points achieved, a project then receives one of four LEED rating levels: Certified, Silver, Gold and Platinum. LEED-certified buildings are resource efficient. They use less water and energy and reduce greenhouse gas emissions. As an added bonus, they save money.

BREEAM CERTIFICATION : http://www.breeam.com

BREEAM is the world's leading sustainability assessment method for masterplanning projects, infrastructure and buildings. BREEAM inspires developers and creators to excel, innovate and make effective use of resources. The focus on sustainable value and efficiency makes BREEAM certified developments attractive property investments and generates sustainable environments that enhance the well-being of the people who live and work in them. BREEAM measures sustainable value in a series of categories, ranging from energy to ecology. Each of these categories addresses the most influential factors, including low impact design and carbon emissions reduction; design durability and resilience; adaption to climate change; and ecological value and biodiversity protection. Within every category, developments score points – called credits – for achieving targets, and their final total determines their rating.

LIVING BUILDING CHALLENGE : https://living-future.org

The Living Building Challenge is the world’s most rigorous proven performance standard for buildings. People from around the world use our regenerative design framework to create spaces that, like a flower, give more than they take.

GREEN GLOBE CERTIFICATION : https://greenglobe.com

Green Globe is the global certification for sustainable tourism. It is a structured assessment of the sustainability performance of travel and tourism businesses and their supply chain partners. The Green Globe Standard includes 44 core criteria supported by over 380 compliance indicators. The applicable indicators vary by type of certification, geographical area as well as local factors.

GREEN STAR CERTIFICATION : http://new.gbca.org.au/about/

Green Star is an internationally-recognised sustainability rating system. There are four Green Star rating tools available for certification of design, construction and operation of buildings, fitouts and communities. Green Star certification is a formal process during which a building, fitout, or precinct is awarded a rating by an independent, third party assessment panel of sustainable development experts through a documentation-based assessment. A Green Star certified rating provides independent verification that a building or community project is sustainable.

THE GLOBAL WELLNESS ECONOMY

The Global Wellness Economy Monitor report was released this month at the 12th annual Global Wellness Summit, which was held at Technogym Village in Cesena, Italy. 630+ industry leaders from 50 nations were all holding their breath in anticipation of discovering the latest statistics. Here below is the press release with details.

The global wellness industry grew 12.8% in the last two years, from a $3.7 trillion market in 2015 to $4.2 trillion in 2017. This all-new data on the ten markets that comprise the global wellness economy provides fresh evidence that wellness remains one of the world’s biggest and fast-growing industries.

Economic context:

From 2015-2017, the wellness economy grew 6.4% annually, nearly twice as fast as global economic growth (3.6%).*
Wellness expenditures ($4.2 trillion) are now more than half as large as total global health expenditures ($7.3 trillion).**
The wellness industry now represents 5.3% of global economic output.

The 2018 edition features more global, regional and national data and analysis than ever before – from the fact that Europe is the fastest growing spender on workplace wellness to the finding that China and India are the fastest growing wellness tourism markets. 

Among the ten wellness markets analyzed,*** revenue growth leaders from 2015-2017 (per annum) were: 1) the spa industry (9.8%), 2) wellness tourism (6.5%) and 3) wellness real estate (6.4%). For the complementary medicine market, the definition changed since 2015 (adding traditional medicine sectors like Ayurveda, Traditional Chinese Medicine), so a formal percentage growth rate can’t be provided.

“Once upon a time, our contact with wellness was occasional: we went to the gym or got a massage. But this is changing fast: a wellness mindset is starting to permeate the global consumer consciousness, affecting people’s daily decision-making – whether food purchases, a focus on mental wellness and reducing stress, incorporating movement into daily life, environmental consciousness, or their yearning for connection and happiness,” noted Katherine Johnston, senior research fellow, GWI. “Wellness, for more people, is evolving from rarely to daily, from episodic to essential, from a luxury to a dominant lifestyle value. And that profound shift is driving powerful growth.”

Spotlight on 5 Markets (Original GWI Data)

Wellness Real Estate

Real estate that incorporates intentional wellness elements into its design, materials and building, and its amenities and programming, is growing fast as more people want to bring more health into the places where they spend the majority of their time. For comparison, the $134 billion wellness real estate market is now about 1.5% of the total annual global construction market and about half the size of the global green building industry.**** There are now more than 740 wellness real estate and community developments built or in development across 34 countries – a number that grows weekly.

Workplace Wellness

Valued at $47.5 billion, the workplace wellness market remains very small in comparison to the massive economic burden and productivity losses (10-15% of global economic output) associated with an unwell and disengaged workforce. Only 9.8% of world employees are covered by a workplace wellness program (321 million people), and programs are heavily concentrated in high-income countries in North America, Western Europe and Asia.

Wellness Tourism 

The $639 billion wellness travel market’s annual growth rate of 6.5% from 2015-2017 is more than double the growth rate for tourism overall (3.2%). World travelers made 830 million wellness trips in 2017, 139 million more than in 2015 – and these trips now represent 17% of total tourism expenditures. Wellness tourism growth is very much a tale of developing markets, with Asia-Pacific, Latin America-Caribbean, Middle East-North Africa and Sub-Saharan Africa all clocking robust gains, and accounting for 57% of the increase in wellness trips since 2015. Over the past five years, Asia is the #1 gainer in both wellness tourism trips and revenues (trips grew a whopping 33% in two years, to 258 million annually). China and India rank #1 and #2 for growth worldwide, adding over 12 million and 17 million wellness trips respectively from 2015-2017.

Spa Industry:

The spa economy, which includes spa facility revenues (now $93.6 billion yearly), and also education, consulting, associations, media and event sectors that enable spa businesses (now $25.2 billion), has grown to a $118.8 billion market. Spa locations jumped from 121,595 in 2015 to over 149,000 in 2017, employing nearly 2.6 million workers. The 9.9% annual revenue growth for spas is much higher than the pace from 2013-2015 (2.3%). From 2015-2017, the hotel/resort spa category added the largest number of spas and revenue, and has now surpassed day/salon spas as the industry’s revenue leader.

Thermal & Mineral Springs:

The thermal/mineral springs market continues to clock strong growth as more people turn to water for stress relief, healing and community. The market grew from $51 billion in 2015 to $56.2 billion in 2017, while facilities jumped from 27,507 (in 109 countries) to 34,057 (in 127 countries) – employing 1.8 million workers. The market is intensely concentrated in Asia-Pacific and Europe, which account for 95% of revenues.

Projected Market Size

“In the face of longer lifespans, and rising chronic disease, stress and unhappiness, we only see growth for wellness ahead,” said Ophelia Yeung, senior research fellow, GWI. “But the wellness market isn’t just growing, it’s extremely dynamic. We believe that the three sectors that represent the core spheres of life will see the strongest future growth – wellness real estate, workplace wellness and wellness tourism – while other sectors will also grow as they support the integration of wellness into all aspects of daily life. And wellness markets will become less siloed and more interconnected, converging to offer solutions and experiences in the places where people live, work and travel.”

For more details on Growth Projections, 2017-2022 please visit: https://globalwellnessinstitute.org