How Saunas Signal the Economy to Come
After nearly 30 years, the economy is finally ready for its next evolution. At least, that's what Americans' love affair with saunas tells us...
A recent multiyear study by marketing-data provider DataForSEO found that Americans are searching for saunas 71% more than they were in 2022.
What's more, "sauna near me" has grown faster than the term "sauna" alone. So people aren't just doing research... They're searching for saunas they can visit today.
Another report from market researcher Technavio projected the sauna market will grow at a 6.4% compound annual growth rate between 2024 and 2029.
Folks have plenty of good reasons to use a sauna. According to the Mayo Clinic, saunas can reduce the risk of high blood pressure, stroke, neurocognitive diseases, pain, and even the common flu.
But for investors, this may be a larger indicator...
As people visit the sweathouse for their health benefits, we're getting the first sign of the economy starting to change.
In 1999, Joseph Pine wrote a book that may have seemed preposterous for its time...
In The Experience Economy, Pine wrote that the service economy was reaching maturity... and that an even bigger economy would soon be built on top of it. He called it the "experience" economy.
In the service economy, consumers were buying labor-saving activities – paying for "time well saved." But in the experience economy, they would be buying "time well spent."
It's the difference between getting a cup of coffee from the gas station and sitting down at Starbucks with a book. Starbucks has much more pricing power on the coffee it sells because it packs an experience.
Pine saw experiences of all kinds as the next frontier of economic development.
And of course, he was right. The experience economy is valued at around $1 trillion today. And it's expected to grow by about another 20% by 2030.
But Pine had another prediction...
He wrote that there was an even more valuable economy layered on top of the experience economy. In this economy, consumers would be buying "time well invested" – products people can use to become their best selves.
Americans Are Spending More on Self-Improvement
Pine called this final step the "transformation economy"...
Where the experience economy sells memories, the transformation economy sells outcomes. Think education, healthcare, and financial planning.
These kinds of businesses help people change. They're selling you ways to become better, smarter, healthier, and more effective.
You might enjoy looking back on a fun experience... But a transformation is about time well invested. It's a lasting change you carry into the future.
In 1998, Pine thought the business world wasn't ready for the transformation stage. The experience economy was still being built.
But Pine updated his view this year. In his new book, The Transformation Economy, he writes...
We're undergoing a radical shift from increasingly commoditized goods & services to more highly valued experiences & transformations.
This is the driving force behind the sauna boom.
Americans are heading to the spa in droves to transform themselves into healthier, more relaxed people. It's a sign that people will pay for self-improvement.
This may seem like a small distinction at first. But it may also change the way businesses value what they sell. As Pine says...
The value of what we sell shouldn't be based on time and materials, but on the outcomes or transformations our products and services provide.
Pine's distant-future economy is finally starting to appear...
Modern consumers want to buy outcomes, not just products. And as the transformation economy unfolds, the companies selling results will flourish most.
Good investing,
Sean Michael Cummings
P.S. There's only one week left to claim a virtual front-row seat to the 2026 Stansberry Conference. In-person tickets are sold out, but you can still catch every presentation and stock pick with a Livestream Pass. The conference beings one week from today, so make sure to claim your Livestream Pass before Sunday.
Further Reading
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Market Notes
HIGHS AND LOWS
NEW HIGHS OF NOTE LAST WEEK
Illumina (ILMN)... life sciences
Dell Technologies (DELL)... laptops and PCs
F5 (FFIV)... cloud technology
Cloudflare (NET)... cybersecurity
HF Sinclair (DINO)... oil refinery
Marathon Petroleum (MPC)... oil and gas
Phillips 66 (PSX)... oil and gas
Valero Energy (VLO)... oil and gas
International Seaways (INSW)... oil tankers
NEW LOWS OF NOTE LAST WEEK
Fidelity National Information Services (FIS)... financial technology
T-Mobile (TMUS)... telecom
AutoZone (AZO)... auto parts
Gildan Activewear (GIL)... apparel
McDonald's (MCD)... burgers and fries
PepsiCo (PEP)... soft-drink maker
Constellation Brands (STZ)... beer and wine
Carnival (CCL)... cruises
Clorox (CLX)... cleaning supplies
Gaming and Leisure Properties (GLPI)... gaming REIT
Builders FirstSource (BLDR)... homebuilder supplier
Walker & Dunlop (WD)... commercial real estate
NRG Energy (NRG)... electric utility
Atmos Energy (ATO)... utilities