FEED-BACK.COM E-ZINE
May / June 2008
Volume 11 Issue 3
Wellness Markets
At the 2008 Global Spa Summit in New York (May 2008), estimates attributed to the Global Spa Economy Report indicate the world health and wellness market generated more than $1 trillion in 2007 from a broad array of service industries such as beauty, fitness, nutrition, and spa.[1] Other sources evaluate revenues and trends associated with the corporate and health segments.
The Global Spa Market
In a comprehensive effort to identify and quantify disparate components of the spa market, SRI International (SRI) produced the "Global Spa Economy Report," on behalf of the Global Spa Summit. An overview of findings were summarized and publicized at the May 2008 meeting. For the spa segment, $60.4 billion in revenues are attributed to capital investments, consulting, education, facilities, media, etc. Hospitality, real estate, and tourism accounted for another $194.0 billion.
Adding beauty, fitness, and nutrition to the mix brings the global health and wellness market figure to $1 trillion. SRI's report offers a "one-year snapshot," reportedly one of the first made by an industry to analyze its worldwide impact. Not surprisingly, the United States landed at the top of the spa revenue list, followed by Japan and Germany, which together generated approximately $22.0 billion in revenues. The scope included interviews conducted with more than 50 industry executives, and survey responses from approximately 1,000 industry sources.[2]
Historical Perspectives
The Global Spa Summit is sponsored by entities in the beauty, hotel, and spa industries, but health care providers and insurance companies also participate in the wellness market. In a March 2006 profile of WellPoint and Revolution-Health, MarketWatch identified "wellness-minded Americans with disposable income" as the driving force for prevention, rehabilitation, and relaxation care services. At the time, three partners (Dole Food Company, Four Seasons Hotels, and WellPoint) were associated with development of a facility that would combine luxury vacations, medical assessments, and wellness programs. The initial investment was estimated at $50 million.
Costs & Volumes
In operation since November 2006, the California Health & Longevity Institute is currently valued at $300 million. Located in Westlake Village (Los Angeles County), the Institute provides a service mix that includes healthy cooking, spa treatments, state-of-the-art medical technology, etc. As noted in a February 2008 "Life Line" article on Spa Finder, the three-day medical checkup experienced by one reporter is comparable to programs offered by other facilities (e.g., Greenbrier, The Mayo Clinic, WellMax, etc.). Services included consultations, fitness routines, lifestyle workshops, and medical work-ups.[3]
The Institute's wellness programs target business executives, groups, and individuals with the financial resources to afford a $2,000 to $5,000 tab — a cost that insurance companies are not likely to cover. A facility serving 1,000 patients annually at that price range would generate revenues of between $2.0 million and $5.0 million. Examples of what is included are: a full exam with medical history, consultations (clinical psychologist, dietitian, exercise physiologist, etc.), and diagnostic tests (e.g., glaucoma, lung function, prostate, vision, etc.).[4]
[1] "Global Spa Economy Report, SRI International, May 2008.
[2] Ibid.
[3] "Life Line", Spa Finder, January February 2008.
[4] "The $5,000 Checkup", Forbes / Yahoo Finance, December 2007.
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