INTRODUCTION

The U.S. day spa industry, which straddles several health & beauty sectors including beauty, health, wellness, nutrition, fitness, and recreation, is a $5,775 million market in 2002. According to Spa Finder, a travel and media company, consumer spending at spas ranks fourth overall in leisure activity spending, following box office receipts.

The U.S. day spa industry is highly fragmented, with the majority of day spas operating as single unit facilities. However, there are signs that the industry is moving towards greater consolidation, as evidenced by the 2000 merger between Elizabeth Arden and Mario Tricoci.

This report explores the hypothesis that the U.S. day spa industry will experience continued growth in 2002 and beyond. However, due to the fragmentation within the industry and the discrepancy between the number of Americans who would like to go to a day spa and the actual number of people who do, without significant promotional spend the industry will still under-perform considering the overall potential of the market.

OTHER RELEVANT REPORTS

A number of U.S. consumer intelligence reports covering other related sectors have been published, are planned, or are in preparation, including:

· Soap, Bath, and Shower Products-U.S. Report, May 2002

· Alternative Medicine, consumer intelligence-U.S. Report, March 2002

· Facial Skincare, consumer intelligence-U.S. Report, February 2002

· Sports Drinks, consumer intelligence-U.S. Report, February 2002

· Health and Fitness Clubs, consumer intelligence-U.S. Report, December 2001

· Vegetarian Food, consumer intelligence-U.S. Report, November 2001

· Diet Aids, consumer intelligence-U.S. Report, October 2001

· Functional Foods, consumer intelligence-U.S. Report, September 2001

· Functional Beverages, consumer intelligence-U.S. Report, August 2001

· Athletic Footwear, consumer intelligence-U.S. Report, April 2001

· Fitness Clothing, consumer intelligence-U.S. Report, March 2001.

Mintel has published a number of reports on other related sectors for the U.K. market that may be of interest to American companies:

· Functional Foods, Market Intelligence-UK Report, March 2002

· Health Food Retailing, Retail Intelligence-UK Report, February 2002

· Health and Fitness, Market Intelligence-UK Report, October 2001

· Vitamins and Mineral Supplements, Market Intelligence-UK Report, May 2001

· Healthy Lifestyles: Healthy Halos, Healthy Aware or Reckless Risk-takers, Special-

UK Report, April 2001.

DEFINITION

For the purposes of this report, the following definitions have been used:

According to the ISPA there are seven types of spas: Club spas, cruise ship spas, day spas, destination spas, medical spas, mineral springs spas, and resort/hotel spas. While many of the same services are offered at each type, the scope of this report covers only those services offered at day spas.

Day spas offer a wide array of spa treatments on a daily basis. They do not offer overnight accommodations.

Here are guidelines that the Day Spa Association has set to make the distinction between a facility that offers spa services, and a true day spa.

A day spa offers:

Environment:

· A clean, safe, calming and nurturing environment

· Private treatment rooms for each client receiving a personal service

· Showering and changing facilities for women and men

· Spa robes and shoes for all sizes

Business licenses:

· Professional, licensed estheticians and therapists on staff

Products & treatments-required:

· Professional spa products for which estheticians and therapists have received

training in their use

· Massages: Swedish, lymph drainage and reflexology (optional: shiatsu, polarity,

sports, deep tissue, and deep muscle)

· Body treatments (one or more on the menu): Body packs and wraps, exfoliation,

cellulite, body toning/contouring, waxing, homecare program (optional: electrical

impulse body toning, heat treatments, aryurveda treatments, laser hair removal,

electrolysis, hand & foot care)

· Face: Cleansing facial, homecare program (optional: medical facial, electrical toning,

laser hair removal, electrolysis, cosmetics, make-up consultation)

· Aromatherapy: personalized for body and/or face

Products & treatments-requires one of the following:

· Hydrotherapy

· Steam and Sauna

· One of the following:

· Nutritional counseling/weight management

· Private trainer/yoga/meditation

Products & treatments-optional:

· Hair-full service salon, scalp treatments and hair packs

· Spa manicure and pedicure

· Other services such as: aromatherapy, acupressure, medical treatments, nutrition,

fitness, aquatic therapy, facials, pedicures, manicures, massage therapy, polarity

therapy, Ashiatsu foot massage, cosmeceuticals (beauty products that help to

improve skin) stress management, spiritual programs, laser hair removal, stone

therapies, cellulite treatment, paraffin-wax foot and hand treatments.

ABBREVIATIONS & TERMS

There follows a list of abbreviations used in this report.

AAR	Alliance for Aging Research
AIS	American Institute of Stress
AMTA	American Massage Therapy Association
B2B	Business to Business
CES	Consumer Expenditure Survey
CPI	Consumer Price Index
DOL	Department of Labor
DSA	Day Spa Association
FDA	Food Drug Administration
FDS	Federated Department Stores
ICR	International Communications Research Inc
ISPA	International Spa Association
NCS	National Consumer Survey (Simmons)
NCHS	National Center for Health Statistics
NIOSH	National Institute for Occupational Safety and Health
NPD	New Product Development
SPAA	Spa Association
SPSS	Statistical Package for the Social Sciences

Terms

The following terms are also used in the report:

Anthotherapy	Spa treatments in humid caves with temperatures between 86 and 107 degrees Fahrenheit.
Acupressure	A technique that involves applying pressure to specific acupoints in an effort to reduce and release tension while stimulating circulation.
Acupuncture	An Oriental technique that promotes healing and wellness by inserting needles at certain points on the body which correspond to internal organs.
Aromatherapy	The art and science of using aromatic essences from plants to promote overall well-being.
Balneotherapy	A term used to describe mineral-water treatments which use sea water or hot springs to revitalize the body.
Cosmeticians	Individuals that advise customers on how to apply makeup and use other beauty products.
Cranio-sacral therapy	A treatment that involves the massage of the head.
Electrologists	Individuals who are trained to remove unwanted hair permanently from a client's body using specialized electrical hair removal equipment.
Electrotherapy	A treatment that utilizes low-voltage electrical currents to reduce cellulite and stimulate muscles.
Endermologie	A French technique generally performed by an esthetician that works to reduce the visibility of cellulite.
Estheticians	Individuals who have received training in skincare and are capable of administering facial and other body treatments with specialized products and techniques.
Exfoliation	Skin treatments that remove the upper layers of dead skin cells through the use of things like sea salt, brushes and loofah sponges etc.
Facial	A treatment that concentrates on the face and involves massage, exfoliation, toning, moisturizing and cleansing.
Fango treatment	A treatment which involves a mixture of mud, oil and water which is rubbed on the body to relieve muscular aches and to generate a detoxification process.
Herbal wraps	A treatment that covers the body with heated mixtures containing herbs, seaweed.
Hydrotherapy	The use of water, using jets, mineral baths and underwater massages, to promote overall well-being.
Iridology	A practice which involves analyzing the colored part of the eye in order to diagnose various bodily ailments.
La stone	A massage treatment that uses heated basaltic rocks and marble stones to clear toxins and balance bodily energy.
Lomi Lomi	A Hawaiian massage that involves rhythmic rocking.
Lymphatic drainage	A massage that involves a technique which drains pockets of water retention and toxins.
Manicure	A treatment that concentrates on the fingernails and generally includes cuticle removal, nail shaping, buffing and polishing.
Microdermabrasion	A treatment that uses fine crystals to exfoliate dead skin cells without chemicals or lasers.
Paraffin treatment	A treatment that uses a heated wax which contains moisturizers and essential oils and is applied to parts of the body. As the wax gets hard, it makes a vacuum that pulls dirt from pores and removes dead skin cells.
Pedicure	A treatment that concentrates on the toenails and generally includes a foot soak, the removal of calluses and dead skin, feet, leg and ankle massage, nail shaping and polishing.
Reflexology	A massage technique that focuses on the foot as a center for tension release in other parts of the body. When the toes and foot are treated, it can have a relaxing effect on the entire body.
Salt glow	A sea-salt treatment applied to the body with massaging strokes to encourage a soaking, exfoliation and purification of the skin.
Sauna	First developed in Finland, saunas involve the use of dry heat to remove toxins from the skin and to open pores.
Shiatsu	A massage technique from Japan that involves acupressure to improve energy flow.
Sports massage	A penetrating massage that focuses on muscle groups, especially those used in athletic activities.
Stress	A bodily response that perceives danger and effects all major systems of the body including the brain, the immune system, the lungs, the heart and blood vessels, the digestive system and sensory organs.
Swedish massage	A massage technique that involves vibration, tapping movements and firm strokes along with the use of oil or lotion in order to manipulate specific pressure points.
Swiss shower	A shower that involves several stationary water jets which spray water on certain pressure points at different temperatures.
Thalassotherapy	Derived from the Greek word thalassos, or sea, thalassotherapy involves using hot seawater along with a mixture of seaweed, vitamins and algae, in order to cleanse the body of toxins and reinvigorate the skin.
Vichy shower	Often used after body treatments like salt glows, a vichy shower has several water jets which push water over a wet table.
Watsu	A relaxation treatment that involves a sequence of gentle movements while immersed in water.
Waxing	A hair removal method that involves removing hair at the roots by using cold or hot wax.

10/2002