Japan Sauna and Spa Market Research Report: Forecast (2024-2030)

Market Definition

Saunas and spas primarily promote relaxation, stress relief, and overall well-being. Saunas uses dry heat sessions to induce sweating & detoxification, while spas offer a variety of treatments such as massages, facials, and hydrotherapy to enhance physical and mental health. These facilities are popular for promoting muscle relaxation, relieving stress, and rejuvenating the body & mind.

Market Insights & Analysis: Japan Sauna and Spa Market (2024-30):

The Japan Sauna and Spa Market size was valued at USD 1.48 billion in 2023 & is projected to reach USD 8.52 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 24.4% during the forecast period, i.e., 2024-30. The growth has been attributed to several factors, including the increasing awareness and appreciation of cultural heritage, urbanization leading to higher stress levels among individuals, and rising disposable income allowing for more spending on leisure & self-care activities. The projected growth in the forecast period is driven by a heightened focus on health among individuals, the increasing popularity of corporate wellness programs aimed at enhancing employee well-being, the emphasis on sustainability & eco-friendly practices, such as Ayurveda within the wellness industry, and the growing adoption of a wellness-oriented lifestyle by consumers.

Luxurious Turkish baths, cutting-edge infrared saunas, and traditional Finnish saunas are becoming increasingly popular in Japan. New facilities are being opened to offer this comprehensive spa treatment range, including aromatherapy, under the labeling stands set by the Aroma Environment Association of Japan (AEAJ). One such instance is, in 2022, RED E-SAUNA was opened as a private sauna facility in Ueno, Tokyo, catering to a broad spectrum of consumer preferences, such as luxurious therapy, traditional & modern saunas, saunas with unique entertainment elements, etc.  In addition, the usage of private saunas, especially infrared saunas, is also increasing and is used for physical therapy in massage clinics, health spas, beauty salons, and domestic homes.

Moreover, the market's expansion is driven by the spending behavior of millennials and urban dwellers who consider sauna and spa services integral to a contemporary lifestyle. This demographic shift has led to increased consumer spending on spa and sauna treatments, positioning these services as essential rather than luxury items, signifying a fundamental societal change toward personal care. The Japan Sauna and Spa Market benefits from entities such as spa & wellness centers, sauna hubs, etc., in terms of revenue growth generated through services like massages, beauty treatments & grooming.

Furthermore, spa sauna treatments offer significant medical benefits for respiratory issues (asthma), cardiovascular-related issues, improper blood circulation, etc. In Japan, spa therapies, especially saunas and steam rooms, are popular due to their detoxifying effects, which are a key selling point making individuals go for it, thus aiding in enhancing the Japan Sauna and Spa Market in the following years.

Japan Sauna and Spa Market Driver:

Surge in Wellness Tourism – The Japan Sauna and Spa Market is being greatly impacted by the rapidly increasing wellness tourism industry. Japan has long been renowned for its diverse cultural heritage and breathtaking natural scenery, drawing in numerous tourists who seek authentic well-being experiences. To satisfy this demand, hotels &   resorts provide a wide range of sauna and spa services that are often inspired by traditional Japanese health practices. Business-related tours are also related to wellness tourism as professionals come and visit to get rid of stress and busier working schedules. As Japan is a hotspot for wellness tourism, the rise in international tourists seeking premium Japanese spa experiences has notably contributed to the growth of the Health and Wellness Tourism Market.

By March 2024, Japan welcomed over 3 million international travelers as per the estimates released by the Japan National Tourism Organization (JNTO), denoting an increase of 11.7% from figures recorded in 2019. The increasing number of affluent foreign visitors to Japan enhances the expansion of premium and luxury hotels. Thus, hotels and resorts are increasingly incorporating sauna and spa services as key amenities, aligning with the global growth in leisure tourism, and hospitality, thereby contributing to driving the market growth.

Japan Sauna and Spa Market Challenge:

Regulatory Challenges in the Japanese Sauna and Spa Industry – The Sauna and Spa Service Industry in Japan faces numerous regulations, such as those related to health and safety standards, licensing, and certifications. These strict guidelines not only limit innovation but also impede growth opportunities for the market. Additionally, governing authorities impose rigorous requirements on facility operators running these types of establishments to ensure both staff members' welfare and guests' safety. PSE Mark (Mandatory Safety & EMC Approval) is mandatorily required in Japan. As a result, operating businesses within this sector requires adherence to multiple governmental restrictions while undergoing frequent inspections throughout their operations cycle, which creates significant difficulties for facility owners/operators within this sector in Japan, thus leading to higher costs.

Japan Sauna and Spa Market Trend:

Rising Influence of Modern Infrared Sauna – During the historical years, the origin of the infrared sauna came as an infrared sweat room. Since then, companies have gone through a natural progression resulting in the development of modern setups, bridging traditional practices with modern advancements. One such company is ‘Sunlighten’ which offers the mPulse Smart Sauna, which is an infrared sauna integrated with red light. In recent years, the majority of Japan’s population has been influenced by modern Infrared Saunas. Far-infrared sauna therapy has become increasingly popular in Japan due to its ability to provide therapeutic effects at lower temperatures compared to traditional saunas.

This form of gentle heat therapy has gained popularity among wellness advocates for its numerous benefits. Clinical studies have revealed that using an infrared sauna is beneficial and indulgent to improve cardiovascular health, alleviate stress levels, promote muscle recovery, and so on. As Japan's population increasingly adopts modern Infrared Saunas, mostly young demographics, it signifies a shift toward embracing innovative technologies with Sauna wellness practices.

Japan Sauna and Spa Market (2024-30): Segmentation Analysis

The Japan Sauna and Spa Market study by MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2024-2030 at the national level. As per the analysis, the market has been further classified as:

Based on Type:

• Spa
• Sauna

The Sauna segment is expected to lead the Japan Sauna and Spa Market. Sauna culture in Japan has deep historical roots and is an integral part of the country's traditions, with practices like bathing in hot springs (onsen). This cultural relevance fosters a strong acceptance and preference for saunas among the Japanese population. Additionally, saunas offer a range of health benefits, including relaxation, stress relief, improved circulation, and detoxification, aligning well with Japan's wellness-focused society. This has increased robust consumer demand for sauna activities, thus broadening the acceptance of sauna practices in the nation. For instance:

• According to the Japan Sauna Institute Report 2023, the population of sauna enthusiasts (Saunners) in Japan reached 16.8 million from 15.7 million in the previous year.

In Japan, companies are forming alliances to boost the sales of sauna services. One such instance is, in 2023, Harvia Plc. and Bergman Ltd signed an agreement to create a joint venture in Japan, to become a substantial local player as a sauna brand in the growing Japanese Sauna Market. Moreover, the emerging concept of themed and event saunas for large-scale spa sauna facilities is gaining traction among the national population. Also, the idea of sauna infusion rituals like Aufguss, etc., has become a trusted strategy for many hotel owners and thermal spa providers to attract the major demographics and boost the growth of the marketplace.

Based on Service Type:

• Relaxation (Sauna Sessions)
• Therapeutic Service (Massage, Aromatherapy, etc.)
• Beauty/Grooming
• Physical & Mental Wellness

Physical & Mental Wellness holds a significant market share in Japan, due to the country's inclination towards traditional and modern wellness practices. This inclination is driven by the growing stress level among corporate professionals, young generations, etc. In addition, health issues such as weight gain, cervical pain, etc., require the need of proper wellness treatment. The steady rise in demand for this type of wellness service has increased the concentration of sauna facilities, providing physical & mental wellness in the nation, making the Japanese sauna and spa market a blend of tranquility and rejuvenation. In 2023, according to the Japan Sauna Institute, metropolitan cities like Tokyo led with 875 saunas, followed by Hokkaido and Osaka, indicating a strong presence of sauna and spa facilities in Japan.

Moreover, facilities offering sauna bathing cater to health and medical benefits that include increased metabolism, blood circulation, pain reduction, cardiovascular function, immune function, sleep, stress management, etc. In Japan, the rise in respiratory illness has provoked individuals suffering from asthma, to regularly avail of wellness services as they consider it a crucial component of holistic health management.

Japan Sauna and Spa Industry Recent Development:

• 2024: Six Senses introduced a brand-new urban hotel and spa retreat in Kyoto, Japan. Six Senses Spa Kyoto offers integrated spa and wellness treatments focused on Sleep, Detox, Yoga, and Fitness, authentic onsen bath houses, a Biohack Recovery Lounge, saunas, steam rooms, a Watsu pool, tea lounges, and more.
• 2023: SaunaLab, a chain of saunas primarily targeting women, was launched by Yoneda in Nagoya, Fukuoka, and Tokyo.

Gain a Competitive Edge with Our Japan Sauna and Spa Market Report

• Japan Sauna and Spa Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• The Japan Sauna and Spa Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.