Report Coverage
This report focuses on the Health and Beauty Spa Industry including the latest trends and developments and factors that influence the sector. There are profiles of 25 companies including national chains and franchises such as Mangwanani, Amani, Africology Imbalie and Sorbet. There are also profiles of hotels that operate in the sector such as the Mount Nelson and One and Only.
Introduction
This report focuses on the South African health and beauty spa industry. The South African spa industry revenue is estimated to have reached approximately R9.5bn in revenues in 2017. In 2017 there were 1,161 spa facilities in the country employing more than 23,000 people. Spend on spa products and services had continued to grow in line with a growing middle class, a booming wellness tourism industry and a general interest in healthy living and stress reduction. However, the coronavirus and resulting travel restrictions have effectively stopped travel and tourism, which will have serious implications for the tourism and spa industries. The lockdown has seen all spas in South Africa close their doors. Many spas and beauty salons had already closed prior to the lockdown in order to protect their staff and customers. As an industry that comes into direct, close contact with the public, the spa industry will experience significant losses, even after the virus is contained, as customers may continue to exercise social distancing.
Strengths
• The industry relies on wellness tourism, which is growing faster than any other travel sector globally.
• The sector is characterised by high levels of innovation and developments in treatments and spa facilities.
• The spa industry is reliant on an increasing focus on health and wellness, which is growing in importance globally.
Weaknesses
• Spas are a luxury reserved for the wealthy, which limits the sector’s growth.
• The majority of services such as massages are discretionary, so industry performance is tied to disposable income and consumer confidence.
• The spa industry is highly fragmented and unregulated – there is no regulatory body which ensures that quality standards are maintained across the industry.
Opportunities
• By providing education on the benefits of various treatments, spas can attract new customers and upsell or cross-sell to existing ones.
• Company employee wellness initiatives.
• Marketing on-demand spa services to busy professionals.
• Marketing treatment packages in niche markets such as to old people, families, teenagers and pregnant women.
• Provision of African products and services.
• The industry needs to train more therapists as it grows. This is an opportunity for companies involved in training.
Threats
• A shortage of qualified therapists means intense competition for skilled employees.
• Coronavirus is restricting travel, resulting in fewer foreign and domestic guests in the hotel/resort sector.
• For small players, competition from large, luxury facilities at hotels and game lodges.
• Inferior quality products applied by unskilled employees results in reputational damage to the industry.
• The ability for anyone to buy spa machinery, such as micro-needling equipment online.
• The majority of services are discretionary and industry performance is tied to disposable income and confidence.
• Weak economy and further downgrades by ratings agencies may result in constrained domestic spend and a further increase in the cost of importing equipment and products.
Outlook
Globally, the spa industry is expected to grow at an average annual rate of 6.4% to reach US$127.6bn in 2022, up from US$93.6bn in 2017. South Africa has a mature spa industry, so if South African spas keep pace with global growth rates, the spa industry in South Africa could be worth US$916.4m (R16bn on 20 March 2020 exchange rate) in 2022. If revenue projections prove to be correct, the industry could employ as many as 35,589 people in 2022. However, travel is being deferred until the coronavirus threat has abated, so the industry, especially those relying on tourists, will suffer in the sort to medium term.
Full Report
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Industry Landscape
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Industry Organogram
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Historical Reports
The Health and Beauty Spa Industry in South Africa 2017-04-21
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View Report Add to CartThe Health and Beauty Spa Industry in South Africa 2014-12-18
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View Report Add to CartTable of Contents
[ Close ]PAGE | ||
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1. | INTRODUCTION | 1 |
2. | DESCRIPTION OF THE INDUSTRY | 1 |
2.1. | Industry Value Chain | 2 |
2.2. | Geographic Position | 3 |
3. | SIZE OF THE INDUSTRY | 3 |
4. | STATE OF THE INDUSTRY | 4 |
4.1. | Local | 4 |
4.1.1. | Corporate Actions | 5 |
4.1.2. | Regulations | 6 |
4.1.3. | Enterprise Development and Social Economic Development | 7 |
4.2. | Continental | 8 |
4.3. | International | 9 |
5. | INFLUENCING FACTORS | 13 |
5.1. | Coronavirus | 13 |
5.2. | Tourism | 13 |
5.3. | Economic Environment | 14 |
5.4. | Rising Operating Costs | 15 |
5.5. | Technology, Research and Development (R&D) and Innovation | 16 |
5.6. | Labour | 16 |
5.7. | Cyclicality | 18 |
5.8. | Environmental Concerns | 18 |
6. | COMPETITION | 19 |
6.1. | Barriers to Entry | 19 |
7. | SWOT ANALYSIS | 20 |
8. | OUTLOOK | 21 |
9. | INDUSTRY ASSOCIATIONS | 21 |
10. | REFERENCES | 21 |
10.1. | Publications | 21 |
10.2. | Websites | 22 |
APPENDIX 1 | 24 | |
Summary of Notable Players | 24 | |
COMPANY PROFILES | 28 | |
AFRICOLOGY (PTY) LTD | 28 | |
AMANI AFRICAN SPAS (PTY) LTD | 30 | |
AP ARABELLA (PTY) LTD | 32 | |
BUSHMANS KLOOF WILDERNESS RESERVE AND WELLNESS RETREAT (PTY) LTD | 34 | |
CAPE GRACE HOTEL (PTY) LTD | 36 | |
DELAIRE (PTY) LTD | 38 | |
FAIRLAWNS BOUTIQUE HOTEL AND SPA (PTY) LTD | 40 | |
FORDOUN LEISURE (PTY) LTD | 42 | |
FOREVER RESORTS (PTY) LTD | 44 | |
FRESH WELLNESS (PTY) LTD | 47 | |
GATSBY (PTY) LTD | 48 | |
IMBALIE BEAUTY LTD | 50 | |
INERCORE PROPERTIES (PTY) LTD | 53 | |
KAT LEISURE (PTY) LTD | 55 | |
LE LUDE MCC CC | 58 | |
MANGWANANI GROUP (PTY) LTD | 60 | |
MERDJAN HEALTH SPAS S A CC | 62 | |
MOUNT NELSON HOTEL LTD | 64 | |
ONE AND ONLY CAPE TOWN (RF) (PTY) LTD | 66 | |
PEZULA RESORT HOTEL AND SPA (PTY) LTD | 68 | |
PLATINUM VALLEY HOLDINGS (PTY) LTD | 70 | |
SAXON HOTEL (PTY) LTD | 72 | |
SORBET EXPERIENCE (PTY) LTD (THE) | 74 | |
TINTSWALO CLASSIC COLLECTION (PTY) LTD | 77 | |
TWELVE APOSTLES HOTEL (PTY) LTD (THE) | 79 |