$17.5 Billion U.S. Medical Spas Industry Boosted by the Pandemic

Tampa – WEBWIRE – Tuesday, November 14, 2023

New Industry Study

The med spas industry is nowhere near saturation."

November 14, 2023: Marketdata LLC, a leading independent market research publisher of “off-the-shelf” studies about service industries since 1979, has released a new 133-page report entitled: The U.S. Medical Spas Industry . This is a new market study about a booming healthcare market that has become more mainstream. The study examines the operations of “med spas” -- hybrid healthcare/cosmetic facilities that straddle the medical and business fields.

There are now an estimated 8,800 “medical spas” or “med spas” now operating in the United States. Medical spas only emerged in 1996 and have exploded in number since 2010. As non-invasive cosmetic procedures have become more popular and prices fell, med spas have flourished.

As primary care MDs seek to replace lost income, and as Baby Boomers and Millennials age, demand will grow for minimally or non-invasive cosmetic procedures made possible by ongoing innovations in laser equipment.

Major Findings:

* Marketdata estimates that revenues of the 8,800 U.S. medical spas reached $17.5 billion in 2022. Average revenues per facility are $1.9 million. Sales are forecast to grow 9.8% per year to 2027 as more med spas open.

* Market Drivers: The market is heavily driven by laser machine technology advances, 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.

* Demand - Americans had 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.

* 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). In addition, more men are becoming clients.

* The Covid-19 pandemic actually boosted this business, as consumers in Zoom meetings viewed their facial faults and decided to do something about it. 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 in 2021.

* Operations - 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. Many are selling to private equity firms.

* Franchising in this industry has been a rocky road, as a growth model. There are just 7 active franchisors, operating 247 outlets. Several companies have gone out of business, 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.

New Analyses - Not publicly available:
- Number of med spas and revenues, by State
- Average revenues of franchises for VIO, MedSpa810, Dermani, from 2022 FDDs
- Industry Revenues & Expense Statement
- Values of the tattoo removal market, hair removal market, injectables market
- Salaries for all types of med spa staff

“This new report brings together in one place the most up-to-date and relevant statistics, research and industry information – from trade associations, consultants and other sources. The Census Bureau does not yet cover this industry, but Marketdata’s research fills in the gaps. The report is a must for new start-ups", according to John LaRosa, Research Director.

ABOUT THE REPORT

The U.S. Medical Spas Industry , published in November 2023, is an independently researched “off-the-shelf” study. The study is 133 pages in length, has 45 tables, and costs $1,295. For the research, Marketdata interviewed market consultants, owners/operators of med spas, laser equipment manufacturers, trade associations, spa industry magazines, and many others, in conjunction with proprietary Marketdata analyses and secondary sources. This study examines the med spas market structure and history, revenues/growth, key market trends and issues, effects of the pandemic, consumer demand factors and demographics, and extensive med spa operating metrics. Covers national revenues (2002-2022 estimates, 2023 and 2027 forecasts). A 20 pp. Executive Overview is available for $99.

ABOUT MARKETDATA

Marketdata LLC, is a 44-year old independent market research and consulting firm that publishes market and industry studies covering a wide range of service and healthcare markets. John LaRosa is available for interviews (813-971-8080). A table of contents is available by email or online and the report can be purchased at: www.marketdataenterprises.com. Contact: Marketdata LLC, 7210 Wareham Drive, Tampa, FL 33647.