Home improvements and renovations has always been a robust US market sector that is relatively recession-proof. Even during difficult economic times, people tend to invest in home improvement projects as a more affordable alternative to upsizing. A generation ago, home saunas were at the more expensive end of home improvement projects. But the advent of prebuilt sauna kits has brought affordability within the reach of the masses and has made the market an attractive one for start ups and business investors.
Steam rooms trending for relaxation
The market is not just targeting those who crave the invigorating experience of a sauna. A growing number of US sauna companies also cater for steam rooms along with your choice of steam room accessories. A steam room is perceived as more of a luxury experience, and targeting this peripheral market has been instrumental in some of the leading companies in this sector joining the elite inc500.
The main difference between a steam room and a sauna is that a steam room offers moist heat that is lower in temperature and higher in humidity that the dry heat experienced in a sauna. It offers proven medical benefits that include better circulation, healthier skin and enhanced joint flexibility.
From a business perspective, adding steam room equipment and accessories to the product portfolio makes sense as it appeals to a wider market. Outdoor saunas obviously require at least some outdoor space and can be subject to planning and zoning regulations. A steam room, on the other hand, is essentially a bathroom upgrade that can be marketed to literally anyone, including city dwellers who live in apartments and condos.
Sustained and steady market growth
The US sauna and steam room market is experiencing robust growth. Since 2020, the market has expanded at a compound annual growth rate of a little over seven percent. Market analysts predict that this will continue over the next six years, in which case the US sauna market alone will be worth more than $60 million by 2030.
There are a combination of factors that have combined to drive this growth:
• Affordability – back in the 1990s, adding an outdoor sauna was a project that would be likely to cost at least $50,000. Today, online sellers can profitably sell sauna kits in prebuilt form for home assembly with price tags starting as low as $3,000. Granted, they still need to be assembled and installed, but it has opened up the market to millions more homes across the US.
• Awareness – the millennial generation, in particular, places far more priority on matters of personal wellness. As awareness has grown of the health benefits that a sauna can bring, it has pushed this higher in many homeowners’ priority lists, above, for example, a home cinema or games room as a desirable home upgrade.
• Availability – as the market has gained momentum, the major sauna brands from both the US and Northern Europe have plowed more investment dollars into product development. This has led to a wider range of products to choose from. As well as the option of steam rooms and accessories, the range of outdoor saunas has expanded to include innovative designs like cube saunas or barrel saunas and new technology such as infrared saunas.
A safe harbor for investors
There is no denying that these are challenging times for America’s financial investors, and hot stocks are few and far between. But the US sauna and steam room market is no longer the specialist niche that it was 20 or 30 years ago.
In fact, it is a market that is predicted to enjoy steady and sustained growth regardless of the macro economic and political factors that create so much doubt and make forecasting so challenging beyond the next few months. It means that businesses in this segment are a compelling choice for investors who are looking for a safe harbor in turbulent times.