The Rise of ‘Third Spaces’ and the $10 Trillion Wellness Boom
A growing number of people are seeking connection and community beyond the traditional confines of home and work, fueling a boom in “third spaces” – establishments designed to foster both physical and social well-being. This trend, accelerated by the pandemic and a rising awareness of loneliness, is transforming the wellness industry and creating lucrative business opportunities.
From Saunas to Skincare: Redefining Socializing
For Grace Guo, a Latest Yorker who frequents Bathhouse and Othership, these spaces offer a welcome alternative to alcohol-centric social gatherings. “Honestly, it kind of just feels like going to a spa together and spending an afternoon together. I think for me, it just feels much better rather than staying out late at night,” she told CNBC. This sentiment reflects a broader desire for spaces prioritizing well-being and authentic connection.
Companies like Bathhouse, Othership, and Glo30 are leading the charge, offering unique experiences ranging from saunas and cold plunges to personalized skincare treatments and community events. Bathhouse, founded in 2019, anticipates reaching $120 million in run rate revenue by the end of 2026. Othership, while declining to disclose financials, is too experiencing significant growth.
Did you know? The term “third space” was coined by sociologist Ray Oldenburg in 1989 to describe places like coffee shops and libraries where people gather and form relationships.
Loneliness as a Catalyst
The demand for third spaces is inextricably linked to a growing loneliness epidemic. Cigna’s 2025 “Loneliness in America” report found that 67% of Gen Zers and 65% of millennials report feeling lonely. A 2024 Harvard survey revealed that 67% of all adults experience social and emotional loneliness. These feelings have tangible health consequences, driving individuals to seek out environments that foster belonging.
“We understand that there’s a huge market for people to meet other people. Loneliness is an epidemic right now,” says Harry Taylor, co-founder of Othership. These businesses are positioning themselves as antidotes to isolation, offering opportunities for genuine connection and shared experiences.
Wellness as the New Luxury
The wellness industry itself is experiencing explosive growth. Equinox chairman Harvey Spevak recently stated that “health is the new luxury,” with the global wellness market projected to reach nearly $10 trillion by 2030. This trend is reflected in consumer behavior, with wellness products becoming a top gifting category during the holiday season.
Glo30, a membership studio offering personalized skincare treatments, is capitalizing on this trend. Founder and CEO Arleen Lamba notes that her company’s more than 100 locations are often found in areas between major cities, catering to a diverse customer base seeking community and self-care.
Beyond Wellness: The Expanding Landscape of Third Spaces
The concept of third spaces extends beyond wellness. Exclusive restaurant memberships, gyms, creative spaces, and social clubs are all gaining popularity as consumers seek alternatives to traditional social settings. Life Time, a publicly traded gym chain, has doubled down on “premium wellness” in recent years, and its stock has more than doubled since October 2023.
The key to success lies in creating environments that are intentionally designed to cultivate community. Glo30, for example, schedules appointments on the hour to encourage social interaction, while Othership hosts events like live music and comedy shows to mimic the atmosphere of traditional social hubs without relying on alcohol.
Frequently Asked Questions
What exactly is a ‘third space’? A third space is a social environment separate from home (“first place”) and work (“second place”) where people can gather, connect, and build relationships.
Why are third spaces becoming more popular now? The pandemic highlighted the importance of social connection, while increasing digital engagement has created a desire for more authentic, in-person interactions.
Is this trend limited to urban areas? While cities like New York and Los Angeles have seen significant growth in wellness clubs, companies like Glo30 are expanding into smaller cities and suburban areas.
What is the future of third spaces? Expect to see more specialized third spaces catering to niche interests, as well as increased integration of technology to enhance the social experience.
Pro Tip: Seem for third spaces that align with your interests and values. Whether it’s a wellness club, a book club, or a creative workshop, finding a community that shares your passions is key to building meaningful connections.
What are your thoughts on the rise of third spaces? Share your experiences and opinions in the comments below!
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