Wellness takes centre stage in UAE's luxury retail evolution

In the United Arab Emirates (UAE), wellness has surpassed its traditional definition to encompass a comprehensive approach to health, self-care and personal growth. It now includes physical fitness, mental well-being, nutrition and social experiences. This concept of wellness is now deeply intertwined with the luxury market, particularly in the dynamic setting of the UAE.

The health and wellness retail market in the UAE is experiencing robust growth. The overall market is projected to grow from AED 8.89 billion in 2024 to AED 9.44 billion by 2025. Within this, the beauty and personal care segment, fueled by strong demand for high-end skincare and professional services, is anticipated to reach AED 4.81 billion by 2025, with a steady annual growth rate (CAGR) of 1.89% expected to carry it to AED 5.28 billion by 2030. The luxury spa market is forecasted to surge from AED 3.97 billion in 2024 to AED 6.68 billion by 2030. Additionally, the athleisure market, which generated AED 17.41 billion in 2022, is expected to reach AED 31.85 billion by 2030. This upward trajectory signals a significant shift in consumer priorities, where well-being is increasingly valued as a form of modern luxury.

Traditional luxury brands are expanding into the wellness sector, creating new revenue streams and deepening customer relationships. They are diversifying into wellness experiences, leveraging customer loyalty and attracting health-conscious consumers. This strategic diversification allows luxury brands to curate a more comprehensive lifestyle experience, seamlessly integrating well-being with their conventional luxury products. Consequently, they are distinguishing themselves in a competitive market by catering to the growing demand for premium wellness services.

Driven by affluent consumers' increasing appetite for holistic wellness experiences, luxury brands are crafting bespoke experiences that resonate with their distinct brand identities. A prime example is Dior Dubai, which has introduced luxury spas and wellness experiences featuring branded treatments. This move deepens brand engagement by providing customers with multi-sensory experiences that go beyond traditional product offerings.

Luxury brands are increasingly emphasising wellness and mindfulness as key strategies to build stronger emotional bonds with their customers. Valentino's collaboration with the Matcha Club in Dubai exemplifies this trend. This partnership resulted in a branded padel sports experience, successfully merging wellness with luxury branding and offering customers a unique avenue to interact with the Valentino brand. During this experience, the brand showcased its Narratives Spring/Summer 2024 collection, alongside a curated selection of Valentino accessories, further weaving its fashion offerings into this innovative wellness-focused initiative.

The UAE's cosmopolitan population, coupled with a growing emphasis on health and wellness, has fueled a rise in demand for athleisure wear. Recognising this shift, luxury brands such as Gucci, Chanel, and Dior have expanded their collections to include athleisure wear, premium sports equipment and ski outfits, aligning with the global trend towards more casual and health-conscious lifestyles.

Social fitness has revolutionised the wellness industry in the UAE, shifting focus towards community building and holistic well-being. This approach integrates social interaction, nutrition, and relaxation with physical exercise, extending the wellness journey beyond traditional gym experiences. The incorporation of food and beverage within wellness concepts, such as specialised studios with integrated coffee shops, represents a new form of luxury that aligns with the UAE's growing health and wellness market. This trend is reflected in the F&B sector's projected growth, with an expected 5% CAGR in eating-out expenditure between 2025 and 2030, highlighting the increasing importance of dining experiences in the UAE's retail sector.

Wellness brands have embraced this integrated approach, with concepts like Peaq, The Bridge, Siro's fitness zone, and Re strategically incorporating social areas and F&B offerings into their centres. These "refuel and relax" spaces serve as enablers, increasing dwell time and fostering a sense of community among members. Communal areas within these facilities play multiple roles, from encouraging social connections to creating an engaging fitness environment that enhances member loyalty.

The inclusion of health-aligned food service offerings not only complement the overall identity of these fitness concepts but also caters to the growing trend of health-conscious eating. This shift in consumer preferences is validated by a 2024 Statista survey, which found that 72% of UAE respondents aged 18 to 64 actively try to eat healthy. By integrating these elements, wellness brands are creating comprehensive experiences that resonate with the evolving expectations of UAE consumers in the luxury wellness sector.

While the wellness luxury market in the UAE shows promising growth, brands must navigate several challenges. These include maintaining brand identity while expanding into wellness, ensuring authentic and high-quality wellness experiences, adapting to rapidly changing consumer preferences and health trends, and balancing exclusivity with accessibility to attract a broader customer base.

The UAE's health and wellness retail market is undergoing a significant transformation, with luxury brands at the forefront of this evolution. Luxury brands are strategically expanding into wellness ventures, offering integrated lifestyle experiences to meet growing consumer demand. This trend is further amplified by the rise of social fitness concepts and the integration of food and beverage offerings within wellness spaces.

As health and wellness become increasingly central to consumer priorities, brands that effectively incorporate these elements into their offerings are poised to lead the market and redefine consumer expectations in the years to come. For expert guidance on navigating the evolving landscape of retail and F&B in the context of wellness and luxury, JLL offers comprehensive advisory services. Our team can help you capitalise on these emerging trends and develop strategies to thrive in this dynamic market. To explore how JLL can support your business, visit JLL MENA.