Med Spas
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 8,800 medical spas offer cosmetic medical procedures and traditional spa services under the supervision of licensed healthcare professionals. Operators provide a variety of aesthetic, minimally invasive, and non-invasive procedures that enhance physical appearance. Popular treatments include dermal fillers, neuromodulators/Botox, laser treatments, microdermabrasion, and chemical peels. Medical spas employ trained staff, such as registered nurses (RN), nurse practitioners (NP), physician assistants (PA), and aestheticians, to administer procedures.
Medical Complications
Medical procedures naturally come with some risk of complications, and those performed by nonphysician personnel in medical spas have elevated risks.
Government Regulation
Because medical spas are technically medical practices, operators are subject to regulatory oversight by state medical boards, which determine what constitutes a medical procedure, who can perform the procedure, the staffing ratio of physicians to non-physicians, and what qualifies as on-site/off-site supervision.
Industry size & Structure
The average medical spa operates out of a single location and generates almost $2 million annually, according to the American Med Spa Association. Single-location medical spas employ an average of eight workers and generate just over $121,000 annually. Multi-location operators employ an average of 16 workers at the primary facility.
- The medical spa industry consists of over 8,800 operators that employ 70,000 workers and generate about $15 billion, according to the American Med Spa Association.
- The medical spa industry is fragmented; over 80% of firms operate out of a single location. Multi-location operators average six locations.
- Two-thirds of medical spas have a single owner. Over 60% of medical spas have an owner who is not a physician.
- Large firms include Ideal Image and Laser Away.
Industry Forecast
Med Spas Industry Growth
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Recent Developments
Aug 15, 2024 - Cosmetic Procedures Growing Share of Beauty Spending
- A NerdWallet 2024 Cost of Beauty Report found that 26% of Americans have purchased cosmetic procedures for themselves, and 11% consider cosmetic procedures a good financial investment, potentially giving them an advantage professionally. In all, 75% of US adults have made a beauty-related purchase for themselves including skin care products (54%), hair products (41%), cosmetic purchases (39%), nail salon treatments (33%), hair salon treatments (30%), hair removal (19%), cosmetic dental procedures (19%), skin spa treatments (18%), nonsurgical cosmetic procedures (7%), cosmetic surgeries (7%), or other (3%). Nearly 60% of consumers used cash or a debit card for beauty purchases, 39% used a credit card that they paid in full by the due date, 21% used savings, 14% used a credit card that they didn’t pay off in full by the due date, 10% used a loan product from the provider of the service/product, and 9% buy now pay later services.
- Consumer confidence levels rose in July 2024, after a decrease in June, according to data from The Conference Board. The Conference Board’s consumer confidence index was 100.3 in July 2024 from 97.8 in June 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those under age 35 and those 55 and older in July. Those in the income category of over $100,000 were the most confident on a six-month moving average basis. Plans for large appliance and smart phone purchases increased on a six-month basis, while plans for home purchases fell to a 12-year low.
- A new report by CivicScience shows that Gen Z is driving growth in non-surgical cosmetic procedures such as Botox and lip fillers. Overall, facial cosmetic procedures increased 18% between 2019 and 2022, and the number of Botox injections climbed 73% during the same period. The share of US adults aged 18-24 who have had a non-surgical cosmetic treatment was 30%, more than double that of the general population, according to CivicScience data. Another 16% of Gen Z consumers have not tried non-surgical cosmetic treatments, but intend to, compared to 9% of the general population who intend to try the treatments. Per the report, Gen Z has grown up in an age of changing beauty standards, influenced by social media and a desire for aesthetic perfection. Adults aged 55 and over are the least interested in non-surgical cosmetic treatments, per the report.
- Automated or touchless wellness treatments are playing a bigger role in spa services, as client preferences shift and labor shortages continue, according to a recent report in Wellspa 360. The touchless options can accommodate customers who have expressed a heightened aversion to being touched and prefer treatments that provide relaxation without the need for hands-on manipulation. Spas are also adding automated wellness services to expand offerings during prevailing labor shortages and heightened demand for spa services. Touchless wellness treatments may include therapeutic baths, automated facials, hydrotherapy massage chairs, LED light pods, salt room therapy, cryotherapy, acoustic therapy, and infrared saunas. At the Carillon Miami Wellness Resort, the spa’s “touchless wellness options” include its popular Wellsystem Wave Massage, using dry water massage, and its ReLounge Wave Mat, using electrostimulation and heat therapy.
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