Exponential Growth Hits US Medical Spas – Revenues Triple Since 2012

DUBLIN, Nov. 20, 2023 /PRNewswire/ — The U.S. Medical Spas Industry” report from Marketdata LLC has been added to  ResearchAndMarkets.com’s offering.

The U.S. medical spas industry has more than tripled in size (revenues) since 2012, and was worth $17.5 billion in 2022. The Covid-19 pandemic actually boosted this business, as consumers in Zoom meetings viewed their facial faults and decided to correct them. After weeding out some poorly managed operators in 2020, business boomed in 2021. Fully 17% of the total med spas in existence were ones started as recently as 2021.

The market is fueled by ongoing laser machine technology, a broader customer base, private equity investment, an aging of the U.S. population, a broader range of safe and effective treatments, and lower costs per procedure. This presents a strong growth outlook over the next five years.

Some things to know about this personal service sector:

  • Industry Size… Marketdata estimates that revenues of the 8,800 U.S. medical spas reached $17.5 billion in 2022. Sales are forecast to grow 9.8% per year to 2027 as more med spas open.
  • Growth markets include: laser hair removal, tattoo removal, and the facial injectables markets, all of which are minimally penetrated currently. For example, 19.8 million Americans want to remove their tattoos (at an average cost of $1,500). The injectables market is only 10% tapped
  • Operating Metrics: Average revenues per facility are $1.9 million. Women account for 88% of med spa clients, and the average profit margin of a med spa is 20-25% of net sales. Start-up costs range from $700,000 to $1 million, with up to half of that allocated to leasing the latest laser machines. This is a fragmented industry of mostly small operators – 81% are single location entities.
  • Demographics: Americans underwent 9.2 million surgical and non-surgical procedures performed in 2022, including Botox injections, dermal fillers, laser hair removal, chemical peels, microdermabrasion, and skin rejuvenation. Non-surgical procedures jumped 23% in 2022. Aging Baby Boomers and Millennials are fueling continued growth.
  • Franchising in this industry has been a rocky road, as a growth model. There are just 8 active franchisors, operating 247 outlets. Several companies have gone out of business in the past decade, due to a poor understanding of the business, too much spent on marketing, a lack of expense control, botched procedures, and overly optimistic revenue estimates.
  • This is a complicated business and not all clinicians and nurses opening up a med spa possess the business and management skills needed to survive. Many wind up selling to private equity investors.

This new study examines the med spas’ industry structure and history, revenues/growth, 13 major market trends and issues, effects of the pandemic, consumer demand factors and demographics, extensive med spa operating metrics, why franchising has grown so slowly, investment by private equity firms, and more. National $ revenues (2002-2022, with 2027 forecasts).

The following are new analyses, most not found elsewhere:

  • 2022 operating metrics
  • Market potential, by STATE
  • Market potential, by type of service (injectables, hair removal, etc.)
  • Financial/operations data from 2022 Company Franchise Disclosure Documents
  • Industry Profit & Loss Statement, profit margins
  • Esthetician, other staff salaries
  • Interviews with industry consultants
  • The top surgical & non-surgical cosmetic procedures, average costs.

Key Topics Covered:

Nature of the Industry

  • Market history, medical spa definition, legal guidelines and typical settings
  • Number of med spas in operation, industry structure, fragmented market, private pay, single-location operations, avg. revenues, recession-resistant business
  • Major trends: Discussions of: aging population, higher demand for non-invasive procedures, mobile med spas, IV therapy, private equity investor interest, laser equipment technology innovation, entry into weight loss services, membership models, patient financing,
  • Liability issues and staff qualifications
  • Industry regulation: ethical dilemmas
  • Types of non-surgical aesthetic procedures for improving skin appearance: hair removal, leg and facial veins, skin rejuvenation – in-depth descriptions
  • Medical spa practitioners – training, number, typical procedures performed: estheticians, laser technicians, cosmetic surgeons, dermatologists.

Consumer Demand: The Top Cosmetic Procedures

  • Summary of number of procedures performed: data from American Society for Aesthetic Plastic Surgery (2022), surge in non-surgical procedures in 2021.
  • Discussion of top 5 procedures surgical & non-surgical procedures for women, men and top 5 minimally-invasive procedures  – number of procedures and spending
  • Highlights of ASAPS 2022 survey on cosmetic surgery: men vs. women, by age, top procedures. Comparison to historical surveys in 2005 and 2000
  • Procedure descriptions, costs

Industry Structure & Operating Ratios

  • AMSPA – Major Findings of 2022 member survey: patient demographics, patient visits per month, no. of med spas, avg. annual revenues per med spa, avg. spend per visit, ownership, repeat patients, percent single location operations, staff avg. salaries)
  • ISPA Surveys: data, major findings of 2023 U.S. Spa Industry Study: total no. of spas, total spa visits, Avg. visits per establishment
  • Medical spas: revenue per visit, per sq. ft., per staff person, visits per spa, sq. footage per spa, employees per spa
  • Discussion of Key Financial Formulas for Med Spas
  • Average cost of new med spa equipment:
  • Discussion of Operations Pitfalls – Opinions of Acara Partners
  • The Medical Spa Physician Report: major findings of Jan. 2012 survey 
  • Marketdata online Med Spa Survey results (Aug-October 2012)
  • Sample income, expense and profit margin statement – market average, estimated by Marketdata – % of sales for variety of expenses
  • Acara Partners: med spa operations pitfalls to avoid, Groupon deals, marketing, budgets, etc.
  • Geographic Analysis – Market Potential, By State
  • Staffing – The Estheticians Outlook: average yearly salaries, projected job growth, regional demand, demographic profile
  • Medical Spa Nurse Jobs: avg. salaries, U.S. and regional
  • Average Salaries for:
    • Injection Specialist
    • Skin Care Consultant
    • Beauty Therapist
    • Skin Therapist
    • Licensed Esthetician
    • Spa Therapist
    • Master Esthetician
    • Lead Esthetician
    • Hair Removal Specialist
    • Wax Specialist
    • Medical Esthetician

Industry Size and Growth

  • Summary: Discussion of market history and reasons for recent growth
  • Factors affecting demand for med spa services: aging of population, state regulations, broader range of treatments available, broader customer base, technology-driven market
  • Current market status: Effects of the Covid-19 Pandemic, how consumer attitudes have changed
  • Effects of the Great Recession of 2008
  • Sources of market estimates: limitations and benefits, lack of government Census data, AMSPA, ISPA, primary research
  • ISPA surveys: 2023 Spa Industry Report findings
  • Discussion: 2020-2021: Performance During and After The Pandemic
  • Discussion: 2022- 2023 Performance
  • 2027 Forecast: Key growth drivers over the next 5 years, rationale,
  • Growth markets:
  • Analysis of the Tattoo Removal Market – Reasons for growth, mkt. $ size estimates
  • Analysis of Facial Treatments Market, injectables – Reasons for growth, mkt. $ size estimates
  • laser Hair Removal Market – Reasons for growth, mkt. $ size estimates

Franchising In The Industry: Company Profiles

  • Radiance Medspa
  • Sona Med Spa
  • Dermani Med Spa
  • VIO Med Spa
  • MedSpa810 Franchising
  • Face To Face
  • Ideal Image Development Corp.
  • American Laser Skincare
  • Venus Med Spa

For more information about this report visit https://www.researchandmarkets.com/r/2nuxsi

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