Outdoor Saunas Are the Fastest-Growing Segment of the Residential Market

Outdoor saunas have become the fastest-growing segment of the North American residential sauna market. Manufacturers, dealers, and building permit data all point in the same direction: barrel saunas, cabin saunas, and custom outdoor builds are where the growth is, and the trend has been accelerating for three consecutive years.

What's Driving Growth

Several converging factors are fueling the outdoor sauna boom. Post-pandemic outdoor living investments continue to drive home improvement spending, while social media, particularly platforms that showcase backyard lifestyle content, has dramatically increased consumer awareness and aspiration.

Barrel saunas remain the volume leader in the outdoor category. Their relatively accessible price point (many models start under $5,000), ease of installation, and distinctive aesthetic have made them the gateway product for first-time sauna buyers. Dundalk Leisurecraft, Almost Heaven, and SaunaLife are among the brands competing most visibly in this space.

Three years ago, outdoor saunas were a niche product. Now they're competing with hot tubs and outdoor kitchens for backyard budget dollars.

Category Snapshot: Barrel saunas lead by unit volume. Cabin and pod saunas are growing fastest in the premium tier. Custom outdoor builds (using thermally modified wood from suppliers like Thermory) are the highest-margin segment. Modular and flat-pack designs are lowering the barrier to entry.

Regional Patterns

Growth is strongest in the Pacific Northwest, Upper Midwest, and Mountain West, where outdoor sauna culture intersects with existing cold-water immersion and outdoor recreation communities. The Southeast and Mid-Atlantic are growing from a smaller base, suggesting the trend is broadening geographically.

Supply Chain Considerations

Manufacturers report that demand continues to outpace production capacity in several sub-categories, particularly for thermowood and cedar outdoor models. Lead times for custom outdoor builds have extended to 8-14 weeks in many markets. Rising lumber costs (Nordic spruce and cedar have both seen price increases) are also putting pressure on margins. As the category grows, entry-level product quality has become a growing concern for the industry.