It’s hot on the heels of a recent report that revealed a $7.5 billion market for the luxury hot tub.
And with the popularity of hot tubs skyrocketing, the industry is starting to see its market share shrink as consumers move away from the more traditional hot tub rentals.
Hot tubs were the hottest market segment in 2012 and 2013, according to research firm eMarketer, but were still only about 20% of the total, making them the second smallest market in the US.
It is also the largest category in the country with over 4 million rentals per year.
Hot Tub Rentals is an industry that’s seen its share of the market decline as well, with eMarketers report noting that just over 50% of all new construction projects were hot tub projects in 2013, down from about 60% in 2011.
However, the market still remains strong, with the National Hot Tub Association (NHTA) saying that the industry will grow to a $4.3 billion market in 2021, up from $3.5 bn in 2020.
While hot tub rental is still a booming industry in the U.S., it’s not necessarily a new thing.
The industry started to take off in the 1970s, and today the industry accounts for about 10% of total sales, according eMarkets research.
According to the NHTA, the majority of new construction, office, and residential construction is for the hot tub, while about a third of residential and commercial construction is done for hot tub entertainment and catering.
The NHTA says that the hot-tub industry is one of the fastest growing segments in the hospitality industry, which is why it has been the subject of the Hot Tub Entertainment and Catering Tax Credit, or HECTC, which has been enacted to encourage more affordable, environmentally friendly entertainment options.
In a press release, the NHMA says that by 2026, the tax credit will benefit over 3.4 million jobs, creating an additional 1.3 million jobs in the industry.
The Tax Credit is also part of a nationwide program to encourage the development of the industry, including the creation of a statewide Hot Tub Touring Licensing Program and an online Hot Tub Renters Guide, which will help local communities and hotels better identify their hot tub-oriented businesses.
According the NHHA, the Tax Credit will help small businesses in rural and minority communities and will help them to attract new residents and new workers to the hospitality sector.