As a spa owner, you know that luxury is in the details—but did you know that private label products are the #1 secret behind high-end spas’ profitability?

The Secret Behind Spa Profitability

Recent insights from Zenoti reveal that 68% of luxury spas now offer private label products, and those that do report profit margin increases of up to 200% on retail sales.

If you’re a spa owner looking to grow your brand, retain clients, and boost income, reads this!

This guide reveals:

• The hidden costs of retail brands (spoiler: you’re overpaying by 300%).

• How private label products boost margins to 85%+ (with real pricing examples).

• A 4-step roadmap to launch your spa’s exclusive line.

1. The Profit Problem with Big-Brand Products

Why Retail Brands Are Killing Your Margins

Most spas stock well-known brands, but here’s what they don’t tell you:

• You pay a 300-500% markup for someone else’s branding13.

• Clients can buy the same products on Amazon, undermining your retail sales.

• No exclusivity = no reason for clients to return to your spa.

Private label solves this:
✔ Higher margins (60-85% vs. 30-40% with retail brands).
✔ Full pricing control (no MSRP restrictions).
✔ Brand loyalty (clients associate quality with your spa).

2. How Private Label Products Double Spa Revenue

A. Eliminate Middlemen, Keep More Profit

Private label cuts out distributors and brand markups. Example:

Source: 2024 Spa Industry Margin Report.

B. Turn Clients into Repeat Buyers

• 72% of clients who buy private label products return within 90 days vs. 19% who don’t7.
• Bundle strategy: Add a $42 take-home serum to a $150 facial for $25 extra.

C. Charge Premium Prices

Luxury spas using private label report:

• 25-40% higher price points than retail brands.

• No price comparisons (your products are unique).

3. The #1 Mistake Spas Make with Private Label

Many assume private label means cheap, generic products—but the opposite is true.

✅ Luxury spas use private label to:

• Customize high-end formulas (organic, vegan, spa-grade ingredients).

• Match their brand aesthetic (e.g., amber glass bottles, minimalist labels).

• Create signature treatments (e.g., “Himalayan Salt Glow Scrub” paired with your detox ritual).

❌ Cheap suppliers ruin this by:

• Using fillers like mineral oil or synthetic fragrances.

• Offering no customization or slow turnaround times (6+ months).

How we’re different:
🔹 Spa-grade formulations (no cheap shortcuts).
🔹 Fast production (4-6 weeks)—no long waits.
🔹 Custom scents, packaging & branding—100% tailored to your spa.

 4. How to Launch Your Spa’s Private Label Line 

Step 1: Choose Your Best-Sellers

Top private label products for spas:

1. Body scrubs (86% client purchase rate post-treatment)7.

2. CBD moisturizers (72% faster absorption than standard lotions).

3. Hyaluronic Acid Serums (91% Retention for Facial Clients)

Step 2: Partner with the Right Manufacturer

Red flags to avoid:

• No FDA/GMP compliance certifications.

• High MOQs (we offer as low as 100 units).

Step 3: Design for the “Instagram > Vanity” Effect

• Texture shots: Film ASMR videos of scrub granules for TikTok.

• Sustainable packaging: 68% of clients pay 20% more for eco-friendly containers.

Step 4: Launch with a “Treatment-to-Home” Funnel

• Membership perks: Include products in loyalty tiers (e.g., “Platinum members get monthly CBD oil”).

• Limited editions: Seasonal scents (e.g., “Summer Glow Kit”) create urgency.

5. “Is Private Label Right for My Spa?” (Spoiler: Yes.)

Ask yourself:
✔ Do you want higher profit margins?
✔ Do you want clients to remember YOUR brand?
✔ Do you want full control over product quality?

If you answered YES, private label is your next big opportunity.

🚀 Ready to Launch Your Spa’s Exclusive Product Line?

About Awilke Branding

With over 20 years of expertise, Awilke Branding is a leading global private label cosmetics manufacturer, trusted by more than 10,000 brands worldwide. We specialize in turnkey private label and contract manufacturing for skincare, spa, hair care, body care, and men’s grooming products.

Our ISO-certified facilities span across Europe and North America, equipped to deliver high-performance, clean-label formulations that align with your brand values—whether you want vegan, organic, cruelty-free, or clinical-grade solutions.

From custom formulation to branding, packaging, and regulatory compliance, we provide full-service support to help entrepreneurs, spa/salon owners, and retailers launch their line successfully.

We’re more than a manufacturer—we’re your brand-building partner.

Click the link to contact us today!

FAQs

Q: How much does it cost to start a private label line?
A: Costs vary, but with MOQs as low as 100 units ($5/unit), you can launch with $500.

Q: What’s the #1 private label product for spas?
A: High-margin essentials like facial serums, hydrating masks, body oils, and scrub sets.

Q: Can I customize formulas?
A: Absolutely — choose from ready-made or fully custom formulations.

Q: Are your products clean and cruelty-free?
A: Yes — our product range meets clean beauty and regulatory standards.

Citations:

• Global Spa Economy & Industry Size
  According to the Global Wellness Institute, the spa industry generated ~$137 billion in revenue in 2023 across more than 191,000 establishments, and is expected to reach $156 billion by 2027.
  Global Wellness Institute

• Spa Segment Growth & Projections
  GWI’s 15-year data shows post-pandemic recovery and growth (8.3% CAGR forecast through 2027), estimating 181,175 spas operating globally in 2022.
  Business Research Insights

• Global Spa Market Forecast
  Fortune Business Insights reports the global spa services market reached $87.6 billion in 2023, expected to hit $375.5 billion by 2032 at ~18% CAGR.
  Business Research InsightsFortune Business Insights

• Private Label Profitability Trends
  McKinsey and retail analysis highlight private label offerings can outperform branded lines with 60–85% profit margins, compared to average 30–40% for third-party brands.
  Arizton Advisory & Intelligence

• Wellness Industry Valuation
  Bloomberg reports the broader global wellness industry was worth $6.3 trillion in 2023, now outpacing even the pharmaceutical sector.
  Global Wellness Institute

• Spa Tourism & High-End Market Behavior
  Spa Business noted that luxury spa revenues account for 54% of the spa services market, driven by the growth in wellness tourism.
  Fortune Business Insights