According to a FICCI-Ernst and Young study titled 'Wellness-Exploring the Untapped Potential', the wellness services market, presently estimated at Rs 11,000 crore, would sustain an annual growth rate of about 30-35 per cent for the next five years.

The report classified wellness industry into seven core segments of allopathy, alternative therapies, beauty, counselling, fitness/slimming, nutrition and rejuvenation.

While rejuvenation services such as spas, alternative therapies, ayurveda treatments and beauty services are expected to grow by as much as 30 per cent, fitness comprising gyms and slimming centres are expected to grow by more than 25 per cent, the study said.

"Given the favourable demand and supply dynamics, wellness presents strong business potential," Ernst and Young Partner (Advisory Services) Farokh Balsara said.

The FICCI-E&Y report said increasing level of activity created by the entry of national and international players in the organised market, expansion by existing companies to new product categories and regions, strategic alliances across the value chain and interest by private equity investors led to the growth in the wellness sector.

It said services like ayurveda treatment, alternative treatment centres and salons require lower investment and have lower paybacks of up to three years. Products such as health foods and drinks, dietary supplements and alternative medicines require greater investments, normally exceeding Rs 25 crore or more with paybacks ranging from 3-6 years.

Region wise, South is much ahead in terms of indicative concentration for the organised wellness-based centres per household with 34.4 centres per lakh households as compared to 13.6 for the North, 12 for West and 10.1 in the East.

The report also pointed out that while alternate therapies are the most popular choice of people in southern India, customers in north are inclined towards beauty, while the maximum number of fitness/slimming centres are in the West. The report also suggests that across segments more than 50 per cent of the market is unorganised and highly segmented with several small and regional players.