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
Jan 16, 2025 - Dermal Filler, Enzyme Peel Among Fastest-Growing Med Spa Services: Glossed
- 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.
- The global medical spa market is expected to grow at a CAGR of 19.9% from 2024 to 2028, increasing an estimated $27.5 billion during that time, according to a recent forecast by Technavio. The report projects that the med spa market will continue to grow as a result of an increasing aging population and the trend toward technological advancements in medical spa equipment. The wellness tourism market is also driving growth, boosted by social media influencers promoting enhancements and luxurious treatments. Many clients are seeking minimally invasive treatments, such as chemical peels, Botox injections, dermal fillers, and laser hair removal. A challenge facing the industry is the high cost of medical spa equipment due to its specialized function and strict regulatory requirements.
- Consumer confidence levels declined in December 2024, falling by 8.1 points from the previous month, according to The Conference Board. The Consumer Confidence Index was 104.7 in December 2024 from 112.8 in November 2024. Dana Peterson, chief economist at The Conference Board, noted that those remaining most confident on a six-month moving average basis confidence were those aged under 35 and those in the income category of over $100,000. Per Peterson, “The recent rebound in consumer confidence was not sustained in December as the Index dropped back to the middle of the range that has prevailed over the past two years.” Purchasing plans for homes decreased while plans to buy new cars and big-ticket items rose in December 2024 on a six-month average basis.
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