Research highlights wellness category potential
Shopper insights research from m1nd-set, published in May, has put the spotlight on the growth of the wellness sector, revealing “significant opportunities” for the global travel retail sector.
The global wellness sector, valued at more than US$4 billion, is set to grow by around 10% over the next two to three years. Some sub-categories are set to see even stronger growth, the Swiss company said.
The wellness app sector is reported to see 13% growth between 2022 and 2026, while the wellness tourism sector will see 20% year-on-year growth over the next two to three years.
m1nd-set reports that personal health products and services is the leading sub-category in the wellness sector, followed by physical appearance such as beauty and skincare products and fitness products and services.
In terms of markets, Asia Pacific is the leading region for the wellness industry, representing over a third of global spend on wellness. North America represents around 30% of the global market and Europe just over one quarter.
North Americans spend most
On a per capita basis, however, North Americans spend more than any other world region and nearly three times more than Europeans, who rank second.
According to m1nd-set, the tendency among global travelers and their concern about their physical and mental health and wellbeing is in line with the global trend, and the growth of the sector in travel retail particularly mirrors that of the domestic wellness sector.
Research reveals that a significant majority of travelers are more concerned than they were before the pandemic about both their mental health (73%) and physical wellbeing (87%).
Anna Marchesini, Head of Business Development at m1nd-set, commented: “Over one third of international travelers say they feel stressed at some point during the journey, which suggests that the appropriate marketing at the right time and place could trigger incremental spend for the health and wellness category. The traveler is certainly open to opportunities.”
The research also points to the desire among travelers to see these wellness opportunities in the travel retail environment. 43% of travelers say they would like to see more initiatives that cater to their mental and physical wellbeing throughout the trip.
One fifth of travelers say they would be prepared to pay for meditation areas and just less than one fifth would pay for spa services and sleeping pods.
“We are seeing that the focus on physical and mental wellness is a clear priority for travelers when traveling internationally,” Marchesini continued. “Relaxation and meditation activities are the number one preferred activity, expressed by 36% of travelers.”
Product portfolio evolution
Peter Mohn, m1nd-set CEO and owner, added: “With consumers planning to spend more on their personal health and wellness across all sectors of the industry in the coming years, we can safely say that the outlook for the health and wellness industry is indeed healthy. Beauty supplements, anti-ageing products, nutrition products and meditation products and services are all areas which will see particularly strong growth.
“Digital tracking devices which monitor physical activities, heart condition and overall fitness, such as health wearables and smart watches, will inevitably experience strong growth also. We can expect both the watches and electronics categories to see an evolution in the product portfolio in travel retail, as retailers adapt to this trend and harness the opportunities,” Mohn concluded.
The opportunities are equally significant among tourists traveling specifically for health and wellness purposes, m1nd-set reports.
The spend per trip among this traveler profile is considerably higher – around 35% more – than the average international traveler. Among domestic travelers, the difference is even greater, with wellness tourists spending 177% more than the average domestic tourist, according to m1nd-set.
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