Bubbling up: As the percentage of higher-income individuals increases, revenue will follow suit

Despite some recovery since 2012, the Hot Tub Manufacturing industry remains much smaller than it was before the recession. Given that hot tubs and spas are highly discretionary luxury goods, demand primarily depends on consumer confidence and per capita disposable income. Challenging operating conditions and lackluster demand from both residential remodeling and new construction have forced many small companies to exit this industry or merge with competitors. Over the next five years, the Hot Tub Manufacturing industry is projected to grow moderately, though annual sales are unlikely to surpass the historically high levels reached in 2004 and 2005. The recovering economy will bolster disposable income and consumer confidence, stimulating a new wave of hot tub purchases...purchase to read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 12-17
4.8%
Forecast Growth 17-22
Profit
Employment
4,353
Businesses
98

Industry Threats & Opportunities

  • Challenging operating conditions and lackluster demand have forced many small companies to exit this industry
  • Poor profitability and falling revenue caused operators to consolidate or exit this industry
  • The price of plastic materials and resin is anticipated to rebound over the next five years
  • Industry Report - Industry Key Buyers Chapter

    The Hot Tub Manufacturing industry has a moderate level of market share concentration, with the top four companies accounting for an estimated 50.0% of industry revenue. Only two industry operators (Jacuzzi Brands Inc. and Masco Brands Inc.) currently dominate the domestic market, competing with several smaller regional and local manufacturers. Market share concentration has increased over the past five years due to significant acquisition activity and dozens of smaller manufacturers choosing to leave the market. As a result, industry participation has declined sharply over the past decade, falling from 94 companies in 2007 to 50 in 2017. Mea...purchase to read more.

    Additional Insights for the Hot Tub Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Hot Tub Manufacturing Industry are

  • Economies of scale
  • Ability to reduce labor costs
  • Control distribution networks
  • IBISWorld analysts also discuss how external factors such as Households earning more than $100,000 and Per capita disposable income in the Hot Tub Manufacturing industry impact industry performance..

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    What's in this report

    What is the Hot Tub Manufacturing Industry?

    This industry manufactures hot tubs, spas and whirlpools made from nonceramic materials (e.g. fiberglass or acrylic). A hot tub is a large tub or small pool full of heated water that is used for soaking, relaxation, massages or hydrotherapy. In most cases, they have jets for massage purposes.

    Industry Products
  • Hot tubs
  • Whirlpool baths
  • Industry Activities
  • Manufacturing hot tubs and spas
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Households earning more than $100,000
  • Per capita disposable income
  • Consumer Confidence Index
  • Price of plastic materials and resin

  • Current Performance
  • Major markets
  • Manufacturers consolidate
  • International trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Consumer demand recovers while input prices rebound
  • Industry structure
  • International trade
  • Table: Hot Tub Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Hot Tub Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Sporting Goods Wholesaling
  • Small Specialty Retail Stores
  • Consumers

  • Key Selling Industries
  • Plastic & Resin Manufacturing
  • Power Tools & Other General Purpose Machinery Manufacturing
  • Wood Paneling Manufacturing

  • Products & Services
  • Hot tubs
  • Whirlpool baths
  • Chart: Hot Tub Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential remodeling
  • Commercial and institutional
  • Residential new construction
  • Exports
  • Chart: Major Market Segmentation for the Hot Tub Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent and utilities
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Hot Tub Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hot Tub Manufacturing Industry

  • Industry Globalization
    Jacuzzi Brands Corporation, Masco Corp.,
  • Table: Jacuzzi Brands Corporation - financial performance
  • Table: Masco Corp. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Hot Tub Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Hot Tub Manufacturing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Private spending on home improvements (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Exercise Spas
  • Hot tubs with water jets and heat designed for massages and hydrotherapy.
  • Hot Tub
  • A large tub or small pool, usually made from plastic or fiberglass, that is filled with heated water and used for soaking and relaxation.
  • Portable Hot Tub
  • A self-contained hot tub with internal heating and plumbing equipment that can be transported.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Hot Tub Manufacturing is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Hot Tub Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Hot Tub Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Hot Tub Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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