The U.S. medical spas industry has more than tripled in size (in terms of revenue) since 2012, and was worth $17.5 billion in 2022. The COVID-19 pandemic actually boosted this business, as consumers in Zoom meetings viewed their facial faults and decided to correct them. 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 as recently as 2021.
The market is fueled by ongoing laser machine technology, 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. This presents a strong growth outlook over the next five years.
The Latest Medical Spa Industry Statistics and Trends
- Medical spas market size: Marketdata estimates that revenues of the 8,800 U.S. medical spas reached $17.5 billion in 2022. Sales are forecast to grow 9.8% per year to 2027 as more med spas open.
- Market opportunities: 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). The injectables market is only 10% tapped.
- Medical spa operating metrics: Average revenues per facility are $1.9 million. 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.
- Key demographics: Americans underwent 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.
- Challenges for franchises: Franchising in this industry has been a rocky road, as a growth model. There are just 8 active franchisors, operating 247 outlets. Several companies have gone out of business in the past decade, 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.
- Business longevity: This is a complicated business and not all clinicians and nurses opening up a med spa possess the business and management skills needed to survive. Many wind up selling to private equity investors.
Where to Learn More
To find out more about this fast-growing market, see the comprehensive 133-page report The U.S. Medical Spas Industry published in November 2023. Marketdata has performed a thorough search of data, member surveys, podcasts, and articles from AMSPA, ISPA, Aesthetic Plastic Surgery Assn., Medical Spa Physician Report, and other sources to create the most comprehensive analysis of the industry to date.
About the Author: John LaRosa is the President of Marketdata LLC and is the author of 100+ industry and market studies. His research appears in top media outlets including ABC, CNN, Fox, Forbes, USA Today, The Wall Street Journal, The New York Times, and a variety of trade journals.
