Med Spas NAICS 812199

May 19, 2025 - Spa Revenues Up

• US spa revenue, locations, and visits are growing, according to the annual US Spa Industry Study report results in Skin Inc. The study is commissioned by the International SPA Association (ISPA), which includes med spa members, and conducted by PwC. Overall revenue at US spas increased 5.8% in 2024 to $22.5 billion year over year. Total spa visits rose 3.1%, reaching 187 million in 2024, while the number of spa locations grew year over year 0.6% to 21,980 in 2024. The report noted that 30% of properties surveyed said they’d renovated their retail in 2024, and 25% had improved their treatment rooms. Revenue per visit also grew 2.6% year over year in 2024, reaching $120.30 in 2024. In addition, spa industry employment increased 1.6% year over year in 2024.
• Med spas are monitoring potential impacts of recent tariffs implemented by the Trump administration on cosmetic injectables and fillers, which could raise the prices of beauty procedures and enhancements, according to a report on MSN.com. The level of price increases depends on the percentage of the tariff and where the injectable is sourced from. According to Dr. Sean McNally, “Most neurotoxin supplies come from Europe, Botox and Juvéderm are produced in Ireland and France, respectively, so any EU tariffs would affect pricing for those. Daxxify is made in the US, so it may be a big winner in this scenario.” McNally noted that clients who currently use Boxtox and fillers are on a regular maintenance schedule for best results and would be impacted by any price increases.

• Memberships were a top growth area for salons, waxing centers, and medspas, which averaged a 24% boost in membership in 2024 compared to a year ago, according to the 2025 Beauty and Wellness Benchmark Report by Zenoti in Salon Today. Membership programs increase the number of customers who visit more than five times a year by 10% and benefit salons by providing reliable recurring revenue and building client relationships. However, medspas saw a decrease in average ticket size from $500 in 2023 to $454 in 2024 for top-earners, reflecting the pricing pressures in this growing category. The report found that the beauty and wellness industry showed a 2% increase in growth in 2024 compared to 5% in 2023. Businesses that focused on adding locations in 2024 saw a 5% increase in revenue. Customer loyalty stood out as a vital income generator, with 42% of loyal clients driving 80% of revenue.
• Med spa visits may be affected by falling consumer confidence, an indicator of discretionary spending, according to two major indicators. The final index of consumer sentiment from the University of Michigan dropped 8% in April 2025 from the previous month, according to CFO Dive. An index measuring consumers’ expectations for the future fell nearly a third since January, the steepest three-month percentage decline since the 1990 recession. According to survey director Joanne Hsu, “Consumers perceived risks to multiple aspects of the economy, in large part due to ongoing uncertainty around trade policy and the potential for a resurgence of inflation looming ahead.” The Consumer Confidence Index declined by 7.9 points in April 2024, compared to the previous month. Consumer confidence levels have fallen for five consecutive months, reaching levels not seen since the beginning of the COVID pandemic, according to The Conference Board, which publishes the monthly index.