How the wellness boom is sparking a surge of small businesses in spa towns

A quarter of small businesses are cashing in on the recent wellness trend, and spa towns stand to benefit the most, according to a new report.

The demand for wellness activities and products, driven by younger consumers, has led to the rise of life coaching and alternative therapies businesses, which now make up the biggest sub-sectors.

And nearly a third of these businesses are based in or around Britain’s historic spa towns, which have all seen strong year-on-year growth in their microbusiness density rates – the number of small companies for each 100 residents – according to a GoDaddy report.

These towns, known for their natural springs and wellness economies, are popular destinations for staycations and day trips. 

GoDaddy found that 57 per cent of Britons have visited one in the past 12 months, while 70 per cent plan to in the next year.

Spa boom: Wellness businesses are seeing huge growth in spa towns like Bath 

At the same time, growth in wellness companies in Bath is up 19.1 per cent over the past year, followed by Boston Spa (17.7 per cent), Malvern (17.7 per cent) and Buxton (14.4 per cent) also saw chunky growth in microbusiness density.

While visiting, 7 in 10 Britons say supporting independent businesses is a priority, with the average spend per person nearly £200. 

Independent pubs, cafes and restaurants (63 per cent) and boutique hotels and B&Bs (30 per cent) are most likely to benefit from spending, the research shows.

A third of visitors say they head to spa towns for wellness weekends, with a similar number prioritising their spending with independent beauty and wellness salons.

Lucy Stone has run meditation sessions in Bath through her business Meditation Rocks since 2020. 

She says she has the ‘opportunity to teach a wide array of people, from corporate visitors to hen dos, local schools and universities.

‘The appetite for wellbeing is ever-present in a spa town should tap into the character of their surroundings to adapt their business and remain flexible to attract a wide range of customers. 

‘No two days are the same in such attractive towns.’

The figures are a brief respite from the current doom and gloom that businesses are facing.

Businesses have strongly criticised Labour’s decision to increase employer National Insurance contribtuions at the same time as increasing the minimum wage. This, paired with stubborn inflation and the higher cost of goods, is proving a heavy burden.

Alex Rosen’s, head of GoDaddy’s Small Business Research Lab said: ‘To see so many of the UK’s iconic spa towns become thriving centres of small business growth is hugely encouraging. These are places with deep heritage and natural appeal, and local entrepreneurs have become the beneficiaries.

What’s more, the rise of wellness-focused small businesses in these regions shows how tradition and innovation can work hand-in-hand. From Bath to Buxton, the UK’s entrepreneurial spirit is alive and well.’

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