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The Health and Beauty Spa Industry in South Africa 2020

Natalie Bryden | South Africa | 24 March 2020

The Health and Beauty Spa Industry in South Africa 2017

Nina Shand | South Africa | 21 April 2017

The Health and Beauty Spa Industry in South Africa 2014

Tracy Geyer | South Africa | 18 December 2014

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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.

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The Health and Beauty Spa Industry in South Africa 2020

Full Report

R 1 900.00(ZAR) estimated $99.18 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.43 (USD)*

Industry Organogram

R 450.00(ZAR) estimated $ 23.49 (USD)*

Historical Reports

The Health and Beauty Spa Industry in South Africa 2017-04-21

R 1 900.00(ZAR) estimated $99.18 (USD)*

View Report Add to Cart

The Health and Beauty Spa Industry in South Africa 2014-12-18

R 1 900.00(ZAR) estimated $99.18 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
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

Introduction

This report focuses on the South African health and beauty spa industry. Total South African industry revenue is conservatively estimated to have reached approximately R1.54bn in 2016. Of the more than 700 spa facilities in the country, 200 are members of the South African Spa Association (SASA) and the industry employed more than 5,500 people in 2016. Industry growth rates for 2015 and 2016 were lower than predicted by the South African Spa Benchmark Report undertaken in 2014 according to SASA Executive Director, Nadine de Freitas. This was in part due to general adverse economic conditions as well as a drop in government spending on conferences and fewer foreign tourists following government’s introduction of stricter visa requirements.

Strengths

• The industry is based on health and wellness which has become increasingly important.
• The sector is characterised by the high level of innovation and developments in treatments and spa facilities.
• The sector is supported by the country’s healthy tourist industry.
• There is room for many different types and sizes of spas and beauty salons.

Weaknesses

• Lack of formal standards and regulations to govern the industry, although there are strong local associations that try to ensure high standards.
• Particularly vulnerable to economic pressures.
• Perception that spas are a luxury reserved for the wealthy affects patronage.

Opportunities

• Establishment of spas in residential lifestyle real estate developments.
• Growing multi-cultural middle class.
• Promotion of unique concepts such as African spas, container spas and herbal spas.
• Treatment packages targeting niche markets such as older generation, families, teenagers and pregnant women.
• Workplace wellness and employee wellness initiatives.

Threats

• Lack of qualified therapists.
• Weak economic growth and further downgrades by ratings agencies.

Outlook

Estimated global revenue of US$3.72-trillion indicates that the spa industry has continued to grow both nationally and internationally with more people turning to health spas for their overall physical and mental well-being. According to role players, 2017 has already seen the launch of six new spas in the country and an increasing focus on wellness and relaxation is expected. Analysts predict that total domestic industry revenue will increase by 10% in 2017 as long as further downgrades by global ratings agencies are not imposed.

The Health and Beauty Spa Industry in South Africa 2017

Full Report

R 1 900.00(ZAR) estimated $99.18 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.43 (USD)*

Historical Reports

The Health and Beauty Spa Industry in South Africa 2020-03-24

R 1 900.00(ZAR) estimated $99.18 (USD)*

View Report Add to Cart

The Health and Beauty Spa Industry in South Africa 2014-12-18

R 1 900.00(ZAR) estimated $99.18 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
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 4
4. STATE OF THE INDUSTRY 8
4.1. Local 8
4.1.1. Corporate Actions 10
4.1.2. Regulations 10
4.1.3. Enterprise Development and Social Economic Development 11
4.2. Continental 13
4.3. International 15
5. INFLUENCING FACTORS 16
5.1. Tourism 16
5.2. Economic Environment 16
5.3. Rising Operating Costs 17
5.4. Technology, Research and Development (R&D) and Innovation 17
5.5. Labour 18
5.6. Cyclicality 20
5.7. Environmental Concerns 20
6. COMPETITION 21
6.1. Barriers to Entry 22
7. SWOT ANALYSIS 22
8. OUTLOOK 23
9. INDUSTRY ASSOCIATIONS 23
10. REFERENCES 24
10.1. Publications 24
10.2. Websites 24
COMPANY PROFILES 26
AFRICOLOGY (PTY) LTD 26
AMANI AFRICAN SPAS (PTY) LTD 28
AP ARABELLA (PTY) LTD 30
BUSHMANS KLOOF WILDERNESS RESERVE AND WELLNESS RETREAT (PTY) LTD 32
CAPE GRACE HOTEL (PTY) LTD 34
DELAIRE (PTY) LTD 36
FAIRLAWNS BOUTIQUE HOTEL AND SPA (PTY) LTD 38
FORDOUN LEISURE (PTY) LTD 40
FOREVER RESORTS (PTY) LTD 42
FRESH WELLNESS (PTY) LTD 45
GATSBY (PTY) LTD 46
IMBALIE BEAUTY LTD 48
INERCORE PROPERTIES (PTY) LTD 51
KAT LEISURE (PTY) LTD 53
LE LUDE MCC CC 55
MANGWANANI GROUP (PTY) LTD 57
MERDJAN HEALTH SPAS SA CC 59
MOUNT NELSON HOTEL LTD 62
ONE AND ONLY CAPE TOWN (RF) (PTY) LTD 64
PEZULA RESORT HOTEL AND SPA (PTY) LTD 66
PLATINUM VALLEY HOLDINGS (PTY) LTD 68
SAXON HOTEL (PTY) LTD 70
SORBET EXPERIENCE (PTY) LTD (THE) 72
TINTSWALO AT WATERFALL (PTY) LTD 74
TWELVE APOSTLES HOTEL (PTY) LTD (THE) 76
VEXICURE (PTY) LTD 78

Introduction

This report focuses on the South African health and beauty spa industry. Total South African industry revenue over the last five years has increased by 261% and reached approximately R1.4bn as at March 2014. Of the more than 500 spa facilities in the country, 494 are associated with the South African Spa Association and employed almost 5,000 people in 2014. According to the South African Spa Benchmark Report (2014), total industry revenue is predicted to increase by 10% in 2015.

Strengths

• High level of innovation and developments in treatments and spa facilities.
• Many different types and sizes of spas and beauty salons.
• Supported by the country’s healthy tourist industry.
• The industry is based on health and wellness which has become important for spa visitors in the overall promotion of well-being.

Weaknesses

• Lack of formal regulations to govern the industry, although there are strong local associations that try to ensure high standards.
• Particularly vulnerable to economic pressures.
• Perception that spas are only for the wealthy.

Opportunities

• Growing multi-cultural middle class.
• Treatment packages targeting niche markets – older generation, families, teenagers, pregnant women and corporate wellness.

Threats

• Increasing input costs, especially the cost of electricity.
• Lack of qualified therapists.

Outlook

Estimated global revenue of US$3.4-trillion indicates that the spa industry has continued to grow both nationally and internationally with more people turning to health spas for their overall physical and mental well-being. To generate growth, spas have expanded their array of treatments, particularly in the area of anti-aging and medical treatments. According to industry players, the elderly generation is expected to be a lucrative market in future so the range of anti-aging services is likely to expand. Analysts predict that total domestic industry revenue will increase by 10% in 2015.

The Health and Beauty Spa Industry in South Africa 2014

Full Report

R 1 900.00(ZAR) estimated $99.18 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.43 (USD)*

Industry Organogram

R 450.00(ZAR) estimated $ 23.49 (USD)*

Historical Reports

The Health and Beauty Spa Industry in South Africa 2020-03-24

R 1 900.00(ZAR) estimated $99.18 (USD)*

View Report Add to Cart

The Health and Beauty Spa Industry in South Africa 2017-04-21

R 1 900.00(ZAR) estimated $99.18 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Supply Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 3
4. STATE OF THE INDUSTRY 6
4.1. Local 6
4.1.1. Regulations & Government Programmes 7
4.1.2. Enterprise Development and Social Economic Development 8
4.2. Continental 9
4.3. International 10
5. INFLUENCING FACTORS 10
5.1. Health and Wellness and Conferencing Tourism 10
5.2. Labour 11
5.2.1. General 11
5.2.2. Employment Figures 11
5.2.3. Unions 11
5.2.4. Skills and Training 11
5.3. Economic Environment 12
5.4 Rising Input Costs 12
5.5 Cyclicality 12
5.6 Information Technology 12
5.7 Environmental Concerns 13
6 COMPETITION 13
6.1 Barriers to Entry 14
6.2 Research and Development (R&D) and Innovation 14
7 SWOT ANALYSIS 14
8 OUTLOOK 14
9 INDUSTRY ASSOCIATIONS 16
10 REFERENCES 16
10.1 Publications 16
10.2 Website 16
ORGANOGRAM 17
COMPANY PROFILES 19
AP ARABELLA (PTY) LTD 19
BUSHMANS KLOOF WILDERNESS RESERVE & WELLNESS RETREAT (PTY) LTD 20
CAPE GRACE HOTEL (PTY) LTD 22
CRADLE HEALTHSPA (PTY) LTD (THE) 24
DELAIRE (PTY) LTD 25
EQUESTRIAN BOUTIQUE (PTY) LTD 27
FORDOUN LEISURE (PTY) LTD 29
FOREVER RESORTS (PTY) LTD 31
GATSBY (PTY) LTD 34
IMBALIE BEAUTY LTD 35
INERCORE PROPERTIES (PTY) LTD 38
JERSEY LANE MANOR (PTY) LTD 39
MANGWANANI GROUP (PTY) LTD 41
MERDJAN HEALTH SPAS SA CC 42
MOUNT NELSON HOTEL LTD 44
ONE & ONLY CAPE TOWN (PTY) LTD 45
PEZULA RESORT HOTEL & SPA (PTY) LTD 47
ROSENHOF COUNTRY HOUSE AND ART GALLERY CC 48
SAXON HOTEL (PTY) LTD 49
TWELVE APOSTLES HOTEL (PTY) LTD (THE) 51
VEXICURE (PTY) LTD 53