When the temperature drops below zero in north China, a familiar winter ritual begins: a bubbling hotpot, an electric blanket on the bed, a steaming kettle on the table—and an entire afternoon spent in a warm, inviting bathhouse. It is the northern way to embrace the season with warmth and ease, and just how Li Xinru, a 25-year-old Beijing resident, spent her last weekend, when the piercing cold wind finally put a pause on the "one mountain each weekend" plan she'd pursued since September.

"Going to a bathhouse is one of my favorite ways to spend a winter weekend, and I've grown increasingly fond of it, seeing the big changes taking place in the industry over the years," Li told Beijing Review. "You might assume that my experience is quite fancy, but it's not—or at least the price is not."

The concept was simple: For 359 yuan ($51), or half the price of a mid-range hotel room within the city, Li purchased an overnight pass on group-buy platform Meituan to a bathhouse in Shijingshan District, on the city's outskirts.

After a relaxing mineral bath, Li spent her evening gaming in a dedicated e-sports zone, singing in a private KTV room with friends, and settling into a cushioned nook in a 24-hour cinema lounge. When fatigue finally set in, she retreated to a quiet, pod-style sleeping area.

"The bathhouse these days is so much more than a cheap place to shower and sleep," Li said. "It is a social club with a water feature, blending bars, cafeterias, mini libraries, game zones, sleeping areas and lots of other options, including getting a massage."

Li's night is emblematic of a quiet revolution in one of China's most traditional service industries. Across the country, bathhouses, massage parlors and hot spring resorts are undergoing a dramatic reinvention. They are strategically pivoting from purely functional spaces, dedicated to cleansing or therapeutic touch, toward becoming multifaceted "third spaces" for China's youth. This new generation is flocking to these venues not for a quick scrub, but for all-in-one experiences that seamlessly blend affordable wellness, immersive entertainment, social connection and even short-stay accommodation. In the process, a sector once fading into nostalgia is writing a new chapter, powered by the desires of Gen Z.

Young minds, young needs

For decades, the quintessential image of a Chinese bathhouse was often austere and utilitarian: a tiled hall echoing with slapping water, a faint scent of disinfectant, rows of lockers... It was a place primarily associated with hygiene and physical relief, where patrons would scrub, steam and then leave—a functional, no-frills establishment that formed an enduring, if somewhat stark, part of urban memory. For the older generation, it was an occasional routine; for many young urbanites, it was an outdated relic from their parents' world, largely overlooked in favor of trendier leisure options.

This "bathhouse-plus" model is now the industry's driving formula. For new and young customers, modern complexes are less about tiles and taps, and more about curated experiences. It's common to find zones dedicated to virtual reality gaming, mahjong, manga libraries, nail salons and gourmet buffet restaurants offering everything from seafood to artisanal desserts. The goal is to maximize dwelling time, turning a 90-minute wash into a 12-hour mini-vacation.

The transformation is backed by strong consumption numbers. According to a market analysis and forecast report by third-party agency China Research and Intelligence Co. Ltd., the industry's market size is expected to surpass 70 billion yuan ($9.9 billion) soon and cross the 200 billion yuan ($28.3 billion) threshold by 2030, with an annual growth rate projected to remain between 10 percent and 12 percent.

And the driving forces behind all these changes, according to the report, are the young minds. The demographic profile of consumers for the bathhouse industry is evolving. Gen Z, or those born between 1995 and 2009, are increasingly becoming the core clientele. Their share of the market is expected to rise from 22 percent in 2020 to 28 percent by late 2025.

Data from Meituan show that this year, searches for social hashtags such as "girls' gathering" and "corporate team building" at bathhouses grew by 230 percent year on year, highlighting the rising social appeal of these venues.

Meituan also indicates that university students stand out as a major target for the off-peak season—a large, established segment that is also growing rapidly. Transaction data highlight this momentum: The teenage group has seen a year-on-year increase of 242.86 percent, while the university student clientele has grown by 162.26 percent, both reflecting strong upward trends.

"I think the reason why they are making the place more functional is so that customers will spend more money there," Li explained. "My 359-yuan coupon covered my bath, showers, two complimentary massages, an overnight stay and two meals there, but I did pay more money for the karaoke and movie zones, the buffet, and one more traditional Chinese medicine (TCM) massage."

"The logic behind the business is still the same—to satisfy customer's needs for relaxation, but now customers have higher expectations for relaxation," Cheng Yi, client manager of Shenghe Water Bath in Hebei Province, told Beijing Review. "People consider bathhouses as a getaway vacation from their work pressures where they can not only enjoy traditional bathhouse services, such as a massage, a shower and a steam, but a place for entertainment and socializing."

From baths to hubs

While the bathhouse industry is embracing change, hot springs are also leveraging their inherent health and wellness advantages through integration with traditional Chinese medicine. This fusion is driving innovation within the hot spring sector, as seen in initiatives like the Fuzhou Changle Seawater Hot Spring Festival.

Held in Fuzhou's Changle District, Fujian Province, the festival exemplifies this trend by centering on the theme "Seawater Hot Spring plus TCM Wellness." It transforms hot spring venues into comprehensive health management destinations. At the Longjing Hot Spring Villa, a rare seawater hot spring rich in minerals, which are traditional TCM elements are deeply integrated. Professional TCM practitioners offer on-site consultations, including pulse diagnosis and constitution analysis, providing personalized wellness advice. The hot spring pools have been upgraded with themed infusions like mugwort for dispelling dampness, rose and milk for beautification purposes, and Chinese angelica for nourishment, altogether creating a holistic visitor experience.

This strategic shift allows the hot spring industry to tap into the growing healing economy, attracting a broader clientele seeking both relaxation and authentic health benefits, thereby writing its own chapter of reinvention alongside the transforming bathhouse sector.

"The changes within service industry are always impacted by consumption in many other areas. Take sports as an example: People show a growing interest in camping and exercising on the weekend. This may seem like it has nothing to do with the bathhouse industry, but now some of our competitors are actually reshaping part of their spaces into indoor sports areas," Cheng explained.

"TCM plus hot spring is the growing trend in hot spring industry," Cheng elaborated. "A focus on wellness will attract customers from different ages, given both seniors and younger people are now showing a zest for physical and mental wellbeing." 

Copyedited by Elsbeth van Paridon

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