In India, a country where traditional medicinal and health practices like Ayurveda and yoga have promoted the idea of mental and physical wellbeing since ancient times, a new concept of wellness is emerging. No longer limited to health, nutrition and relaxation, the new multi-dimensional definition of wellness encompasses the individual’s desire for social acceptance, exclusivity and collective welfare. WELLNESS INDUSTRY
The 2009 FICCI-Ernst & Young (EY) Wellness – Exploring the Untapped Potential report classifies the Indian wellness industry into two segments: wellness services and wellness products. Expected to grow dramatically in the next years, both the segments offer great opportunities to wellness providers. At the end of 2008, the overall industry was estimated at around INR 27.000 crore (EUR 4.05 billion1), of which INR 11.000 crore (EUR 1.65 billion) represented by the services segment and the rest by the products segment.
WELLNESS INDUSTRY SIZE AND SEGMENTATION (EUR billion)
1,65 41% Wellness Products Wellness Services 2,4 59%
Source: Ernst & Young and FICCI
According to the study, the wellness industry has the potential to sustain a compound annual growth rate of more than 14% till 2012, with the wellness services market expected to witness an annual growth of approximately 3035% till 2014.
The conversion rate utilized in this report is 1 INR = 0.015 EUR.
WELLNESS INDUSTRY PROJECTIONS (EUR billion) 7,00 6,00 6,00 5,00 4,05 4,00 3,00 2,19 2,00 1,00 2009 2010E 2011E 2012E Source: Ernst & Young and FICCI
5,26 4,62 3,84 2,90 1,65 Wellness Industry Wellness Services
Geographically, South India is much ahead in terms of wellness, with an average of 34.4 wellness centers per 100.000 households, compared with 13.6 for the North, 12 for the West and 10.1 in the East.
AVERAGE NUMBER OF WELLNESS CENTERS IN INDIA 0 South North West East 13,6 12 10,1 Source: Ernst & Young and FICCI
The report depicts the overall wellness industry as highly unorganized, with the organized sector limited to less than 50 percent of the industry. The industry’s disorganization and fragmentation open further opportunities for international wellness players to capture a large share of the market. Wellness services
From massages to cardio sessions, from steam baths to ago puncture, from slimming programs to beauty treatments, the wellness services segment includes all the facilities, centers and in general domestic and international players which offer Indian customers wellness solutions. Recent trends in the wellness services sector
Spas: As per the FICCI-EY study, rejuvenation services – including spas, alternative therapies, Ayurveda treatments and beauty services – is expected to witness a 30 percent growth till 2014. In its 2009 report, SpaFinder Inc. counted over 2.300 spas operating in India, with over 700 to open by 2012 and generating revenues for approximately EUR 264 million annually. NUMBER OF SPAS IN INDIA (PROJECTION)
3500 3000 2500 2000 1500 1000 500 0 2009
Source: SpaFinder Inc.
+ 700 spas
A distinct trend visible in the Indian wellness market is the opening of spas in the mid-price category. No longer exclusivity of 5-stars hotel guests, standalone spas with a more affordable price-value equation are filling a gap that was missing in the market2. Gyms: Assessed at around INR 500 crore (EUR 75 million) in 2009, the gym market in India is quickly developing. As per the FICCI-EY study, fitness services – comprising gyms and slimming centers – will grow by more than 25 percent till 2014. According to the consultancy firm Deloitte and the US-based International Health, Racquet & Sportsclub Association, the number of people using health clubs in India currently stands at 0.23 million. Of this, experts say 40 percent are women3. HEALTH CLUB USERS PENETRATION RATE