With urbanization on the rise, more and more people are heading towards spas to restore their sense of wellbeing. People have recognized the role that spas play in promoting their mental and physical wellness, which has contributed to the growing demand for spa services across the country.
In 2024, the Indian spa market reached a valuation of USD 2.02 billion. According to marketing research company iMARC, the Indian spa industry is expected to expand to USD 4.63 billion by 2033, registering a CAGR of 9.67% from 2025 onwards. The spa industry, once considered a luxury, is now seen as an essential service, promoting relaxation, stress relief, and health benefits.
The growth in the spa industry has further boosted the revenue growth of the spa products segment in the country. A study by Grand View Research shows that spa products segment in India generated USD 1.8 billion in revenue in 2024 and is projected to reach nearly USD 3 billion by 2030, growing at a CAGR of 8.9% between 2025 and 2030. This significant growth is being driven by increasing wellness tourism, a middle class with disposable income, demand for grooming and wellness, and a rising awareness of traditional practices like Ayurveda.
The key growth drivers
Traditionally, India has been a country that has favoured Ayurvedic and traditional wellness therapies. There is a rising consciousness about wellness and the awareness that holistic treatments inspired by Ayurveda help in managing stress. Consumer are preferring natural and holistic healing. This has led to an increase in demand for spa treatments and other traditional Indian therapies with spas offering specialized treatments.
The rise of wellness tourism is the other factor that is driving the growth in the spa industry. Ayurveda is a major draw for wellness tourism in India, attracting both domestic and international visitors. Spas are incorporating Ayurvedic treatments, herbal therapies, and naturopathy to cater to the wellness seekers. Over the years, specialized Ayurvedic therapies like Panchakarma, Abhyanga, and Shirodhara have gained popularity.
The market is also seeing an increasing popularity of spas in tier 2 and 3 cities as well. In fact, many professional beauty salons are evolving into spas and offering more holistic wellness therapies. Rise of the luxury spa resorts, and destination spas is also driving the growth.
The challenges in the industry
The Indian spa industry is grappling with a shortage of adequately skilled professionals, which limits the ability of many spas to operate at full capacity. A gap exists between the industry’s demand for trained therapists and the availability of qualified personnel. This challenge is particularly pronounced in smaller towns and cities, where vocational training centres are limited, and the lack of standardized programs hinders the development of a skilled workforce. The shortage impacts the ability of spas to offer a full range of services, making it essential to address through targeted government-supported training programs.
The other aspect is the high operational costs. Running a spa in India involves substantial operational expenses, particularly in urban centres. Real estate prices in major cities continue to climb, making it difficult for spas to secure affordable locations. In addition to property costs, spas must invest heavily in specialized equipment, such as hydrotherapy tubs and saunas, to meet consumer expectations. These high initial and ongoing costs create financial barriers for small and medium-sized spa operators, affecting profitability and limiting opportunities for growth. Managing these expenses is a key challenge that spa businesses must navigate to remain competitive.
India spa market outlook
The India Spa Market is expected to witness robust growth during the forecast period, fuelled by the increasing demand for wellness services, rising disposable incomes, and the expansion of wellness tourism. The market will continue to benefit from government initiatives aimed at promoting wellness tourism and the integration of traditional Indian therapies into modern wellness practices. The Ministry of AYUSH reported that Ayurveda contributes over INR 500 billion to the Indian economy as of 2023. The combination of modern and traditional therapies is driving spa growth, particularly in wellness resorts that focus on holistic health and healing. Further, the market is ripe for franchising opportunities, especially in emerging markets with tier 2 and tier 3 cities showing an increasing interest in wellness services. Investors are keen to enter the wellness market by partnering with established spa brands, offering an opportunity for rapid industry expansion and brand penetration into underserved regions.
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