Swim spa sales increase as retailers focus on water therapy and fitness

Compiled by Jason Cramp

Similar to the swimming pool industry, which was down slightly in 2013, the hot tub market also saw a minor dip in hot tub product last year.
According to Chris Robinson, sheet business manager for Lucite International, an acrylic-sheet manufacturer in Cordova, Tenn., the total number of hot tub units manufactured in 2013 was approximately 25,000, representing a 3.8 per cent decrease compared to 2012. In fact, between 2010 and 2012, hot tub manufacturing has remained relatively flat, hovering around 26,000 units per year. He also says the exchange rate has favoured Canadian company’s selling into the U.S., whereby imports have been growing; however, this is reversing now.
Don Elkington, president and CEO of Coast Spas, a manufacturer of prefabricated portable hot tubs and swim spas in Langley, B.C., says the company’s dealers showed increases in hot tub sales overall.
“Our average sale to our dealers and, therefore, to the end-consumer was at a much higher price tag,” he says. “The consumer is finally starting to understand the value of a proper hot tub and the benefits of buying from a respected manufacturer. So it is not just about a cheap hot tub and a low price it would seem. Customer service and aftermarket service are important.”
Doug Gillespie, director of marketing for Hydropool Hot Tubs, a manufacturer of prefabricated portable hot tubs and swim spas in Mississauga, Ont., also says his company had a good year.
“Hot tub sales were up 20 per cent; however, despite the fact more units were sold, the shift in the average price went down. That being said, the swim spa market grew significantly. More people are starting to understand what the product is and are installing them above-ground, which eliminate any complications.”
Elkington is also seeing similar trends as much of the company’s growth has come from its higher-end hot tubs and swim spa series.

Consumers are relaxing in hot tubs
Both companies attribute the consumer’s reason for purchasing a hot tub or swim spa comes down to wellness.
“The aging population understands the benefits of hot tub ownership,” says Elkington. “A hot tub is that ‘sleeping pill’ before bed. A hot tub nurtures and renews relationships with family and, for most, costs less than a two-week vacation.”
Stress relief, well-being, and relaxation are key selling features, adds Gillespie.
“The shift in popularity of swim spas is because people are now looking at them as a complete aquatic centre—they are much more than a place to swim as they serve various purposes (e.g. pool, wave pool, and an all-in-one gym).”

Hot tub dollars-and-cents
In 2013, Hydropool’s sales were up year-over-year by 15 per cent and is projecting this year’s Canadian sales will grow approximately 10 per cent, while Coast Spas’ first quarter sales results are up by more than 20 per cent at this time last year.
Robinson concurs regarding the success of the hot tub market, saying there was a nice increase in sales year-over-year between 2012 and 2013, and he expects this to continue.
“Provided the weather breaks soon enough that we can capture delayed sales, rather than have them turn into lost sales, we can expect an overall increase in hot tub sales between five and seven per cent in 2014.”
Two trends to watch for this year are saltwater disinfection systems for hot tubs and the return of consumer financing (payment deferrals), says Gillespie.
“The credit crunch affected these types of sales as banks weren’t as forgiving,” he adds. “However, credit is starting to loosen up and it is becoming easier for consumers to get financing; therefore, retailers need to know how to properly sell this option.”
Elkington points out one final critical issue the hot tub industry faces going forward with respect to regulated and certification standards for electrical usage.
“These requirements are standard practice in the U.S. for the California energy commission—all hot tub manufacturers are required to meet those standards if they sell into California,” explains Elkington. “I believe Canada should have a standard set to our climates and ambient temperatures as well.”