Global Franchise 9.3

he beauty and wellness industry is undergoing a remarkable transformation, and franchising is emerging as a dominant force in this change. Once considered a niche market, wellness has become an integral part of people’s everyday lives, extending far beyond fitness to encompass mental health, beauty, and nutrition. According to the GlobalWellness Institute, the wellness economy has now reached $6.3 trillion, representing 6.03% of global GDP. This sector is expected to grow at an annual rate of 8.6%, potentially reaching $8.5 trillion by 2027. This dramatic growth reflects shifting consumer attitudes toward self-care, with wellness now seen by many as a necessity rather than a luxury. The pandemic accelerated this transformation, highlighting the importance of personal health and longevity. Global phenomenon “The wellness sector is one of the standout performers in franchising today,” says Stacy Anderson, global brand president at Anytime Fitness, to Global Franchise. “Coming out of 2020 and the pandemic, there’s been a heightened awareness of health and wellness, with a renewed focus on longevity – how to live better for longer. This shift isn’t just confined to theWestern world; it’s a global phenomenon. Information technology and social media have made health and wellness education more accessible, fueling interest in this sector across every region.” Anderson’s colleague, Sander van den Born, EVP of International at Purpose Brands – parent company of the world’s largest portfolio of fitness, health and wellness franchise brands and services, including Anytime Fitness, Orangetheory Fitness,Waxing the City, Basecamp Fitness/SUMHIIT Fitness and The Bar Method – concurs: “Post-pandemic, awareness of health has skyrocketed. People around the world are prioritizing not just physical strength but mental well-being too. Nearly 50% of Purpose Brands’ business comes from outside the U.S., and this growth has accelerated over the past few years. Franchising thrives in this sector because franchisees are deeply embedded in their local communities, offering personalized experiences that corporate operators can’t match.” This shift in consumer behavior – toward a more holistic approach to health – is now a global trend, making franchising an ideal model for wellness brands to scale. By fostering local connections and offering tailored services, franchises are always uniquely positioned to meet the evolving demands of consumers worldwide. Personalization A defining characteristic of the wellness industry’s expansion is the increasing consumer demand for personalized services. As consumers become more knowledgeable about their health, they seek wellness experiences that cater to their unique needs – whether that’s a specific type of massage, a skincare regimen, or a niche fitness class. John Teza, President and CEO of Hand & Stone Massage and Facial Spa, which recently announced a major expansion across seven U.S. states with the conversion of 30 LaVida Massage locations, explains further. “Customers expect wellness services to deliver not just results but exceptional experiences,” he points out. “More than ever, they want services tailored to their individual needs, whether that’s prenatal massages, deep tissue work, or personalized skincare. It’s about addressing their unique concerns in ways that feel truly individualized.” T 0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $1.61 Pharmaceuticals Sports Tourism Green Economy Note: Manufacturing is a value-added figure; the other sectors are a revenue or market size measurement. Tourism includes both inbound and domestic trip expenditures. Source: Global Wellness Institute , World Bank, WHO, Gratner, LSEG, Euromonitor, Global Sports Insights, IQVIA Wellness Economy Health Expenditures IT Manufacturing $2.65 $4.65 $4.80 $4.97 $6.32 $10.60 $16.20 GLOBALWELLNESS ECONOMYVERSUS OTHER MAJOR INDUSTRIES MARKET SIZE IN 2024 42 GLOBAL FRANCHISE Issue 9.3