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
Recent Developments
Mar 19, 2025 - Memberships Driving Growth
- 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.
- Personal care services, included in the “Other Services” category, is one of the 14 industries reporting growth in February’s Services ISM Report on Business. Executives in the Other Services industry reported increases in business activity, new services, and employment, while reporting decreased inventories, lower order backlogs, and higher prices paid for materials and services. Other services industries reporting growth during the period included Finance & Insurance; Wholesale Trade; Utilities; Agriculture, Forestry, Fishing & Hunting; Mining; Real Estate, and Rental & Leasing. The three services industries reporting contraction during the period were Management of Companies & Support Services; Retail Trade; and Educational Services. Overall, economic activity in the services sector expanded in February, with the Services PMI registering 53.5%.
- American med spa trends that took off in 2024 included enzyme peels, laser lipo, and dermal filler, according to the annual Glossed report from GlossGenius in American Salon. The fastest-growing facial treatments in 2024 were enzyme peels (up 98% from last year), lip flips (up 77%), and scalp facials (up 67%). The Glossed report found the fastest-growing body treatments were laser lipo (up 64%), wood therapy massage (47%), and cupping add-on (17%). The fastest-growing injections were dermal fillers (up 19%) and Botox (up 8%) while fast-growing massages were Swedish massage (up 57%), therapeutic massage (44%), and full body massage (up 42%). Over half of beauty and wellness professionals increased prices in 2024, citing reasons such as a new location/upgraded space, increased demand for services, and higher take-home pay.
- Med spas will have to monitor minimum wage changes in 2025, as 21 states and 50 local jurisdictions increased their minimum wages, according to Chain Store Age. States with the highest minimum wage in the US are Washington ($16.66 per hour), California ($16.50), and New York ($16.50). Nearly 30 cities in California and seven towns in Washington will raise minimum wages in 2025, with Tukwila, Washington, offering the highest minimum hourly wage in the US at $21.10. According to the Economic Policy Institute, the minimum wage change will affect more than $9 million workers and raise pay by a combined $5.7 billion. Unchanged since 2009, the federal minimum wage is $7.25 an hour, and some 20 states, primarily located in the South and the Midwest, use the federal minimum as their wage floor.
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