Operating environment

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Sauna and spa market has historically been non-cyclical

The entire global sauna and spa market was estimated to be approximately EUR 2.7 billion, of which sum approximately EUR 380 million consisted of heaters and sauna components.¹ Installation, construction and other labour are estimated to account for approximately half of the sauna and spa market. In addition, the sauna and spa market comprises sauna and spa rooms and structures as well as control units and other accessories. Harvia’s target markets are heaters and sauna components including steam generators and infrared radiators, sauna rooms, control units and other accessories. As a rule, labour (installation, repair and maintenance) is not a part of Harvia’s target market but with the Saunamax acquisition, Harvia has started to selectively offer also heaters’ and sauna’s maintenance and installation services in Finland.

The sauna and spa market has been historically non-cyclical due to the large stock of saunas and in particular the replacement demand arising from the frequent need to replace heaters. According to an International Management Consultant Analysis carried out in autumn 2017, replacement demand accounted for approximately 61 per cent of the global sauna and spa market in 2016. Approximately 77 per cent of the global heater and sauna component market was replacement market in 2016. Share of sauna and spa facilities’ new build market of the sauna and spa market is approximately 39 per cent.

The global sauna and spa market is projected to grow at an average annual rate of 5 per cent in 2016–2022.²

The key market drivers include the replacement of old saunas, heaters and sauna components and building new saunas.

The drivers of sauna’s new build market are the rise in the awareness of saunas and sauna bathing and increased residential new construction and the increased construction of saunas into commercial use. In addition to the factors driving the piece volume of sauna sales, the value of the sauna and spa market is also increased by increase in the average purchase price and the acquisition of more extensive saunas.

In more mature sauna and spa markets, the new build sauna volumes are driven by growth in the number of residential buildings and commercial real estates. In the developing sauna and spa markets, new build sauna volumes are further driven by the rising awareness of saunas and sauna bathing, which are predicted to result in growing sauna penetration in both new build and also in existing building stock.³

¹ International Management Consultant Analysis in Fall 2017.
² International Management Consultant Analysis in Fall 2017.
³ International Management Consultant Analysis in Fall 2017.