The size of the global sauna and spa market is over three billion euros. Harvia is a global leader in the sauna and spa market. According to the management’s estimate, Harvia’s share of the sauna and spa market has increased during the last few years. In 2022, Harvia’s share of the sauna and spa market continued to increase and was estimated to be 5%, and the company’s share of the sauna heater and sauna component market was estimated to be 21%. According to Harvia’s estimate, there are approximately 18 million saunas in the world. This large sauna base provides significant business arising from the replacement of saunas and sauna heaters.
The market for saunas and spas has historically been non-cyclical due to the large stock of saunas existing and in particular the replacement demand arising from the frequent need to replace heaters.
The frequency of heater replacement largely depends on where and how the sauna is used. In hard professional use, such as spas, for example, heaters are often replaced every 3–4 years.
Historically, the sauna and spa market has grown annually by an average of 5%. Due to the stable demand that arises from the need to replace sauna heaters regularly, the sauna and spa market has been traditionally resilient to economic downturns. This is true especially for the more mature sauna markets.
During the past few years, the sauna and spa market enjoyed growth significantly above its historical average. The growth was fueled by increasing awareness of the health benefits of sauna and the home improvement boom boosted by the COVID-19 pandemic. This so-called advance demand was driven by the increased demand for new saunas and equipment, and to lesser extent by the replacement demand.
In 2022, the sauna and spa market witnessed two key developments. Firstly, the pandemic-driven advance demand faded away in the second quarter as pandemic restrictions in key markets were lifted and consumer behavior shifted away from the pandemic patterns. Secondly, the economic uncertainty increased, and mainly in Europe, consumer confidence eroded significantly throughout 2022 after the Russian invasion of Ukraine.
The key market drivers include the construction of new saunas and the replacement of old saunas, heaters and sauna components.
Drivers for the new build market of saunas and spas include:
In addition to the factors driving the piece volume of sauna sales, the value of the sauna and spa market is also growing due to an increase in the average purchase price of saunas and the construction of larger sauna premises.
In the more mature markets for saunas and spas, the new-build sauna volumes are driven by growth in the number of residential buildings and commercial real estate.
In the developing sauna and spa markets, new-build sauna volumes are further driven by the rising awareness of the sauna and the health effects of sauna bathing. This is predicted to result in a growing penetration of saunas in both new-build and in the existing building stock.