Spa & Salon Software Industry Overview
|Study Period:||2018 - 2028|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
*Disclaimer: Major Players sorted in no particular order
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Spa & Salon Software Market Analysis
The spa and salon software market is expected to register a CAGR of 7.11% over the forecast period. With the rising demand for healthy and standard lifestyles, people are looking for services that can relieve stress caused due to a busy lifestyle. Consequently, spa and salon services are gaining traction, which, in turn, is increasing the demand for the spa and salon market. This results in the investment in spa and salon management software to streamline business activities. This software manages the business efficiently, adds value to the business, and allows businesses to manage customers efficiently and grow exponentially.
- Major factors, such as effective client management, employee management, effective promotional and marketing activities, organizing client appointments and bookings, planning and control, resource management, and automation, drive the market's growth.
- According to the International SPA Association Foundation study, the US spa industry is continuing to experience rapid growth. Moreover, according to the Global Wellness Institute, the global spa industry is expected to reach USD 127.6 billion by 2022.
- People working in the beauty industry are using enhanced spa and salon software to boost their business growth. This software is helping business owners in automating numerous aspects of daily operations and to have complete control over them. They can even modify their processes to support their business growth and meet customer satisfaction levels.
- As with any booming industry, the salon industry's success comes with a lot of pressure on salon and spa owners and managers. Small and medium enterprises and large enterprises need to keep track of inventory, marketing campaigns, employee and client schedules, and everything in between. This is boosting the adoption of spa and salon software.
- However, the initial setup cost involved with the software includes installation and training costs, which are usually high, restricting growth in small and medium businesses. Further, the interoperability issue is expected to arise while using the software to automate the processes thoroughly.
- The spa and salon software market is one of the largest markets hit by the COVID-19 pandemic. Other related needs, like tourism, accommodation, and food and beverages service sectors, which were performing well, slowed down due to the lockdowns and the temporary ban on international travel and domestic travel restrictions worldwide. The sudden drop in revenues from spas worldwide has slowed down the growth of the spa and salon software market.
Spa & Salon Software Industry Segments
Spa and salon management software is a web-based solution that aids spa and salon businesses manage their daily business operations. The system automates a range of tasks, including appointment booking and scheduling, appointment confirmations, customer interactions, inventory tracking, staff management, secure storage of data, and implementation of marketing campaigns.
The Spa and Salon Software Market is Segmented by Size of the Enterprise (Small and Medium Enterprises and Large Enterprise), Deployment (On-premise, Cloud), End-user Industry (Manufacturing, Automotive, BFSI, IT and Telecommunication, and Media and Advertising), and Geography.
|By Size of the Enterprise|
|Small and Medium Enterprises|
|By End-user Industry|
|IT and Telecommunication|
|Media and Advertising|
|Other End-user Industries|
|Rest of the World|
Spa & Salon Software Market Trends
This section covers the major market trends shaping the Spa & Salon Software Market according to our research experts:
Cloud-based Software to Gain Maximum Market Traction
- Significant factors, such as effective client management, employee management, effective promotional and marketing activities, planning and control, resource management, and automation offered by the available software, attract spa and salon companies to adopt the software increasingly.
- The market is witnessing a rise in the adoption of cloud-based software. Factors such as reduced IT costs, increased flexibility, instant data accessibility and recovery, business continuity in case of a crisis, minimizing downtime, and loss of productivity are driving the adoption of cloud solutions.
- Cloud-based software allows a business to set up a virtual office, which offers the flexibility of connecting to the business anywhere, at any given time. In September 2021, Zenoti, the SaaS provider in the beauty, wellness, and fitness space, announced the acquisition of SuperSalon software. The acquisition will power over 15,000 spas, salons, and med-spas in Europe.
- With the gradual shift toward beauty and wellness products, owing to the increasing trend of a healthy lifestyle, the salon and spa businesses are also growing substantially. Hence, the need to efficiently collaborate with the business is increasing. The adoption of cloud solutions expected the business to communicate and share more easily across different locations apart from the traditional methods.
- Factors such as reduced IT costs, increased flexibility, instant data accessibility and recovery, business continuity in case of a crisis minimizing downtime and loss of productivity are driving the adoption of cloud solutions.
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North-America to Hold the Highest Market Share
- The North American region is expected to hold the highest market share in terms of revenue in the spa and salon software market. It is due to the early adoption of beauty salon services and products by individuals and professionals in salons and spas, owing to the increased demand for healthy and standard lifestyles.
- The changing lifestyles of the urban population and increasing health and skin problems are stimulating the market's growth. Further, increasing disposable income makes people more focused on personal appearance. The advanced techniques and technologies used in spas and salons are some more products expected to boost the market.
- Moreover, the region has a strong foothold of spa and salon software vendors, contributing to the market's growth. Some include Zenoti, MindBody Inc., Shedul, DaySmart Software, and Springer-Miller Systems.
- The spa industry has witnessed steady growth in North America, driven by a stable economy and increasing consumer spending on wellness-related things. The region witnessed multiple partnerships, mergers, and acquisitions across vendors.
- For instance, in April 2022, SalonUltimate, a Texas-based flexible business management software provider for the beauty industry, announced a partnership with Tippy, a salon and spa digital tipping platform. The partnership enables salon owners to provide a fully integrated checkout solution for acquiring and disbursing cashless tips.
- According to the International SPA Association (ISPA), nearly 70% of spas provide the option for customers to book a treatment online, with 83% saying that they use social media to share discounts or promotions with their customer base. Such trends prompt the state of adoption of solutions by spa and salon owners.
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Spa & Salon Software Market Competitor Analysis
The spa and salon software market is fragmented, owing to the presence of many solution providers globally. Thus, numerous companies focus on partnerships and investing in research and development activities to develop advanced and innovative solutions.
- September 2021 - Zenoti acquired US-based SuperSalon, a salon management software solutions provider. The acquisition aims to bolster its revenue and strengthen its presence among large standalone salons using SuperSalon in the United States.
Spa & Salon Software Market Top Players
*Disclaimer: Major Players sorted in no particular order
Spa & Salon Software Market Recent Developments
- April 2022 - Tippy announced that it has an embedded workforce payments platform Branch to launch an all-in-one solution for acquiring and disbursing cashless tips. Tippy and Branch's integrated solution aims to optimize the entire tipping experience, from the customer's wallet to the service professional's wallet.
- January 2022 - Salon management software startup, Glamplus, raised USD 700,000 in a Pre-Series A round from Blume Ventures, Ramakant Sharma (COO- Livspace), and participation from existing investors IPV. The company clarified that the funds raised would be utilized in vertical tech SAAS capabilities and expand the B2B marketplace business to 10,000 partners.
Spa & Salon Software Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitutes
4.3.5 Intensity of Competitive Rivalry
4.4 Assessment of the impact of COVID-19 on the Market
4.5 Market Drivers
4.5.1 Increasing Demand for Healthy and Standard Lifestyle
4.5.2 Automation in Business Processes
4.6 Market Challenges
4.6.1 Initial Setup Cost
5. TECHNOLOGY SNAPSHOT
5.1 Customer Relationship Management
5.2 Inventory Management
5.3 Resource Management
5.4 Enterprise Management and Reporting
5.5 Business and Financial Reporting and Analysis
6. MARKET SEGMENTATION
6.1 By Size of the Enterprise
6.1.1 Small and Medium Enterprises
6.1.2 Large Enterprise
6.2 By Deployment
6.3 By End-user Industry
6.3.4 IT and Telecommunication
6.3.5 Media and Advertising
6.3.6 Other End-user Industries
6.4.1 North America
6.4.4 Rest of the World
7. COMPETITIVE LANDSCAPE
*List Not Exhaustive
7.1 Company Profiles
7.1.1 MindBody Inc.
7.1.2 DaySmart Software
7.1.3 Springer-Miller Systems
7.1.4 Zenoti (Soham Inc.)
7.1.5 Waffor Inc.
7.1.7 Vagaro Inc.
7.1.8 Simple Spa
7.1.9 Phorest Salon Software
7.1.10 Millennium Systems International
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Spa & Salon Software Market Research FAQs
What is the study period of this market?
The Spa and Salon Software Market is studied from 2018 - 2028.
What is the growth rate of Spa and Salon Software Market?
The Spa and Salon Software Market is growing at a CAGR of 7.11% over the next 5 years.
Which region has highest growth rate in Spa and Salon Software Market?
Asia Pacific is growing at the highest CAGR over 2018 - 2028.
Which region has largest share in Spa and Salon Software Market?
North America holds highest share in 2021.
Who are the key players in Spa and Salon Software Market?
MindBody Inc., DaySmart Software, Springer-Miller Systems, Zenoti, Waffor are the major companies operating in Spa and Salon Software Market.
Spa and Salon Software Industry Reports
In-depth industry statistics and market share insights of the Spa and Salon Software sector for 2020, 2021, and 2022. The Spa and Salon Software research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Spa and Salon Software report PDF.