Croatian wellness industry set to double by 2027

Tuesday, March 19, 2024

The Global Wellness Institute forecasts a promising future for the wellness industry, projecting an annual growth rate of 8.6% until 2027, effectively doubling its value from the pandemic-impacted year of 2020. A recent study by McKinsey highlights the sector’s burgeoning trends, identifying millennials (aged 28 to 42) and Generation Z (aged 12 to 27) as the primary consumers driving growth. Notably, these demographics show a pronounced interest in the ‘mindfulness’ subcategory, investing significantly in meditation courses, mindfulness apps, and various therapy sessions.

This growing consumer base suggests a bright outlook for the wellness industry globally, with significant implications for Croatian wellness and its developing continental tourism, currently experiencing an infrastructure investment boom. For the first time, national budget funds and European Union (EU) financial support are being allocated to enhance commercial offerings in the wellness and medical tourism sectors, spearheaded by various public special hospitals and spas under the Ministry of Tourism’s initiatives.

A substantial investment of approximately 60 million euros was sanctioned at the year’s outset to support projects aimed at transforming spas, with an anticipated positive impact on Croatian GDP growth of 2.8% over the next decade or two, compared to 2021. This financial injection is part of a broader effort to redefine Croatian wellness and elevate its status in the competitive health tourism market.

The impending works in the Croatian wellness sphere are preceded by the development of the country’s first wellness rulebook, an initiative led by the Health Ministry. This guideline aims to delineate the industry’s scope and establish regulatory standards, reflecting a structured approach to fostering industry growth.

Jelica Popić, a prominent consultant in the wellness industry, underscores the critical role of infrastructure investment in advancing modern and competitive health tourism products. However, she cautions that without a strategic focus on user-targeted programming, new facilities risk underutilization. Popić also highlights the significant economic contribution of health tourism in Croatia, which currently employs around ten thousand individuals and generates approximately 300 million euros in revenue, with potential future earnings reaching up to one billion euros annually.

Amidst this optimistic landscape, Denis Kovačić, a physiatry specialist at Varaždin Spa, has led the establishment of a National Centre for the Rehabilitation of Persons with Spinal Cord Injuries and secured 17.1 million euros from the National Recovery and Resilience Programme for the Spa’s development. These efforts aim to elevate the Minerva Hotel to a four-star quality level, incorporating both indoor and outdoor pools, enhanced catering facilities, and improved energy efficiency.

Kovačić also contrasts the Croatian and Slovenian health tourism sectors, highlighting Croatia’s retention of treatment activities and professional staff as key advantages. The McKinsey study further identifies physician referrals and the cautious navigation of consumers through the wellness industry’s marketing landscape as crucial trends shaping the sector’s future.

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