Issue 104 | Hot Tub Industry Update
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Hot Tub Industry Sales Decline After Three Years Of Growth
Consumer demand for hot tubs, which surged during the pandemic, decreased in 2023, and sales are off to a slow start in the first half of 2024.
“The Covid spa rush is over.”
California Hot Tub Dealer
“There is a saturated hot tub market and economy.”
Ohio Hot Tub Dealer
Some homeowners have become more cautious about spending and are moving away from the frenzy of home-related purchases. Additionally, rising hot tub prices have further dampened consumer interest.
Over the past fifteen years, the industry has not rebounded to pre-recession levels, and the average annual growth in the past two decades has been slightly negative. There was some pandemic-fueled growth during 2020 – 2022, but those increases vanished in 2023. However, there was an overall positive trajectory over the past decade, with an average annual growth of 3%, bolstered by the increased demand from the pandemic.
“Covid money is drying up. Inflation is creeping up.
The Middle Class is feeling the squeeze.”
Massachusetts Hot Tub Dealer
New residential hot tub unit sales (000), 2003 - 2023
Another issue that must be considered is attrition, which refers to eliminating units due to age, disrepair, or lack of use, causing a loss of units in the installed base of hot tubs. Fewer sales of hot tubs that are then outpaced by attrition result in a decline in the total number of units. This reduction in the hot tub base can negatively impact the aftermarket value of service, chemicals, and equipment associated with unit maintenance and upkeep.
Hot tub attrition as a percentage of new residential hot tub unit sales, 2014 - 2023
What's next for the Industry?
As slow sales persist in the first half of 2024, hot tub dealers must reassess their retail strategies and marketing efforts to align with changing consumer behavior and preferences. By closely monitoring market trends, gaining insights into consumer needs, and offering competitive pricing, dealers can better navigate the evolving landscape and boost consumer interest in the hot tub market.
Pkdata recently released the analysis of the YE2023 Hot Tub Industry. We have more data – contact us if we can help with any of your data needs in the pool or hot tub industry.
Pkdata is your source for comprehensive data and analysis of the pool and hot tub industry.
To order the YE2023 US Hot Tub Market Report or to see the Table of Figures, click here.
