The phenomenal growth of the Indian economy is well documented, however, wellness and spa companies wanting to do business there need to be surgical in their analysis of the opportunities if they are to create successful businesses.
Although the wellness and spa sector is forecast to grow from inr700bn in 2012 to over inr1 trillion in 2015, this number hides a plethora of variables, many of which have been thoroughly laid out by a new PricewaterhouseCoopers report on the Indian wellness economy Imperatives for growth: the wellness industry – an invaluable document for those considering investing.
The report shows strategic deals with partners are driving much of the growth: up to 65 per cent of all deals since 2009 have been of this nature. International operators targeting India, initially aiming for the 15 bigger cities, are now going into second and third tier locations to maintain growth. In hair and beauty they include Dessange, Saks and Toni & Guy, in fitness, Fitness First and Anytime Fitness and in spa, Six Senses.
PwC says the market has been characterised by small businesses, but the arrival of corporate players will drive investment as they look for funds to fuel expansion.
The greatest consumer demand is in three areas: hygiene, curative and enhancement. As a result, sales of products represent up to 60 per cent of the market, with services at only 40 per cent. As well as being a greater proportion of volume, products also have higher value – PwC says EBITDA for beauty and wellness products ranges from 20-30 per cent, while services operate at 8-20 per cent.
This indicates that spa operators who enter this market off the back of powerful retail brands will have both a strategic advantage and higher revenues.
There are other clues about demand: wellness-related F&B sales, skin and haircare and alternative therapies represent more than half the value of the market, meaning operators need a business model which plays to this. Fitness is growing fast, with 50 per cent of openings this year in that sector of wellness, so spas which make exercise a core offering could tap into this demand.
Standards and training appear to be the biggest hurdles to overcome in terms of industry development, but the greatest challenge overall will be creating a margin in the face of low consumer spend, discounting and global inflation. But those that navigate their way through these challenges could build businesses with exciting potential.
Liz Terry, editor twitter: @elizterry
Read more from this issue of Spa Business magazine
Interview: Lee David Stephens
Thai-based management company
MSpa runs 44 spas with 450 staff. The
General Manager talks to Katie Barnes
about a recent deal with Per Aquum
and its rapid expansion
Interview: Kathryn Moore
MSpa’s operations director is creating
a brand new wellness concept and a
fast track spa manager programme
Company Profile Promotion: GOCO Hospitality
After just four years of operation GOCO Hospitality is regarded as a global leader
in wellness hospitality segment of the industry. With 22 projects on its books,
spanning three continents, we look at what underpins the company’s success
Company profile promotion: Comfort Zone
The Comfort Zone spa brand has been newly revamped and revitalised to better communicate its core offerings as a natural, scientific and soul-centred skincare and lifestyle brand
Green: Being green
Ecocert’s new Being label is the first
public-facing green certification for
spa operations, eco-friendly
Promotional Feature: Part 4 - Pre-Opening
Opening a spa successfully is all about planning. Gary
Henkin, president of WTS and Doug Chambers, principal
of Blu Spas, share their experience of pre-opening
Company Profile Promotion: Aromatherapy Associates
Global product company Aromatherapy Associates knows how
to make treatments and retail work in a spa environment and
partners with operators to make a real point of difference
Industry survey: Price to pay
A GSWS report on global therapist pay focuses on differing salary composition, benefit and commission structures. Lisa Starr takes a closer look
Spa Retreat: Running on juice
Juice Master founder Jason Vale tells
Kate Cracknell about its retreats and
how juicing can help prevent disease
Interview: Wee Wei Ling
Neena Dhillon meets the founder of
St Gregory: the spa brand owned by Pan
Pacific that’s just opened a wellness
floor in Singapore’s ‘hotel in a garden’
Research: Moving target
A McKinsey study highlights the fast-changing
spending patterns of China’s
luxury consumers. Leonor Stanton
finds out what this means for spas
Advertisement Promotion: A gift from Ez-Runner...
Vouchers can be used as a stand-alone system integrated into your website or added as a module of Ez-Runner’s leisure management software to control your spa facility
The phenomenal growth of the Indian economy is well documented, however, wellness and spa companies wanting to do business there need to be surgical in their analysis of the opportunities if they are to create successful businesses.
Although the wellness and spa sector is forecast to grow from inr700bn in 2012 to over inr1 trillion in 2015, this number hides a plethora of variables, many of which have been thoroughly laid out by a new PricewaterhouseCoopers report on the Indian wellness economy Imperatives for growth: the wellness industry – an invaluable document for those considering investing.
The report shows strategic deals with partners are driving much of the growth: up to 65 per cent of all deals since 2009 have been of this nature. International operators targeting India, initially aiming for the 15 bigger cities, are now going into second and third tier locations to maintain growth. In hair and beauty they include Dessange, Saks and Toni & Guy, in fitness, Fitness First and Anytime Fitness and in spa, Six Senses.
PwC says the market has been characterised by small businesses, but the arrival of corporate players will drive investment as they look for funds to fuel expansion.
The greatest consumer demand is in three areas: hygiene, curative and enhancement. As a result, sales of products represent up to 60 per cent of the market, with services at only 40 per cent. As well as being a greater proportion of volume, products also have higher value – PwC says EBITDA for beauty and wellness products ranges from 20-30 per cent, while services operate at 8-20 per cent.
This indicates that spa operators who enter this market off the back of powerful retail brands will have both a strategic advantage and higher revenues.
There are other clues about demand: wellness-related F&B sales, skin and haircare and alternative therapies represent more than half the value of the market, meaning operators need a business model which plays to this. Fitness is growing fast, with 50 per cent of openings this year in that sector of wellness, so spas which make exercise a core offering could tap into this demand.
Standards and training appear to be the biggest hurdles to overcome in terms of industry development, but the greatest challenge overall will be creating a margin in the face of low consumer spend, discounting and global inflation. But those that navigate their way through these challenges could build businesses with exciting potential.
Liz Terry, editor twitter: @elizterry
Read more from this issue of Spa Business magazine
Interview: Lee David Stephens
Thai-based management company
MSpa runs 44 spas with 450 staff. The
General Manager talks to Katie Barnes
about a recent deal with Per Aquum
and its rapid expansion
Interview: Kathryn Moore
MSpa’s operations director is creating
a brand new wellness concept and a
fast track spa manager programme
Company Profile Promotion: GOCO Hospitality
After just four years of operation GOCO Hospitality is regarded as a global leader
in wellness hospitality segment of the industry. With 22 projects on its books,
spanning three continents, we look at what underpins the company’s success
Company profile promotion: Comfort Zone
The Comfort Zone spa brand has been newly revamped and revitalised to better communicate its core offerings as a natural, scientific and soul-centred skincare and lifestyle brand
Green: Being green
Ecocert’s new Being label is the first
public-facing green certification for
spa operations, eco-friendly
Promotional Feature: Part 4 - Pre-Opening
Opening a spa successfully is all about planning. Gary
Henkin, president of WTS and Doug Chambers, principal
of Blu Spas, share their experience of pre-opening
Company Profile Promotion: Aromatherapy Associates
Global product company Aromatherapy Associates knows how
to make treatments and retail work in a spa environment and
partners with operators to make a real point of difference
Industry survey: Price to pay
A GSWS report on global therapist pay focuses on differing salary composition, benefit and commission structures. Lisa Starr takes a closer look
Spa Retreat: Running on juice
Juice Master founder Jason Vale tells
Kate Cracknell about its retreats and
how juicing can help prevent disease
Interview: Wee Wei Ling
Neena Dhillon meets the founder of
St Gregory: the spa brand owned by Pan
Pacific that’s just opened a wellness
floor in Singapore’s ‘hotel in a garden’
Research: Moving target
A McKinsey study highlights the fast-changing
spending patterns of China’s
luxury consumers. Leonor Stanton
finds out what this means for spas
Advertisement Promotion: A gift from Ez-Runner...
Vouchers can be used as a stand-alone system integrated into your website or added as a module of Ez-Runner’s leisure management software to control your spa facility
People taking GLP-1 weight loss medications such as Ozempic, Wegovy, Mounjaro and Zepbound
may be losing weight, but they’re also becoming less physically active, according to new
research presented at the ENDO 2026 annual meeting of the Endocrine Society
Abu Dhabi-based investment firm Mubadala Capital has made a binding, fully financed
€1 billion
offer to acquire Pierre and Vacances SA, the European holiday resort operator behind the
continental European Center Parcs business.
Global retreat trade show, Synergy The Retreat Show, has launched a resource called The
Source, which hosts an open-access online Transformation Series programme.
The Standards Authority for Touch in Cancer Care (SATCC) charity has announced its first five-
day Living with Cancer and Beyond retreat, which will be held at Carden Park Hotel and Spa in
Cheshire, UK, between 1 and 5 September.
Patmos Aktis, a Luxury Collection Resort and Spa, has opened in Greece, with a renovated and
rebranded wellness offering called Ansana Wellness and Spa.
The Mauna Kea Beach Hotel, an Autograph Collection property in Hawaii, US, has opened its
22,000 sq ft indoor-outdoor Spa at Mauna Kea as the final step in the property’s overall
renovation, which has cost more than US$180 million (€166 million, £140 mill
The UK spa review and discovery platform for consumers, the Good Spa Guide, has announced
it will host the Good Spa Guide Awards 2026 during an event on 16 November at Sopwell House
Hotel in St Albans, UK.
Eighty-four per cent of consumers now say wellness is a top priority in their lives, with this
percentage increasing year on year, according to a preview presentation of McKinsey’s Future of
Wellness 2026 research report.
Mass protests have been taking place since Monday 1 June in Albania over the development of
a luxury resort by Donald Trump’s daughter Ivanka Trump and her husband Jared Kushner.
Global Wellness Day (GWD) marked its 15th anniversary on Saturday 13 June 2026, with the
theme: #JoyMagenta – a celebration of the healing qualities of simple gestures and activities
that spark joy.
