DUBLIN, Nov. 20, 2023 /PRNewswire/ — The “U.S. Medical Spas Industry” report from Marketdata LLC has been added to ResearchAndMarkets.com’s offering.
The U.S. medical spas industry has more than tripled in size (revenues) 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.
Some things to know about this personal service sector:
Industry 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.
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
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.
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.
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.
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.
This new study examines the med spas’ industry structure and history, revenues/growth, 13 major market trends and issues, effects of the pandemic, consumer demand factors and demographics, extensive med spa operating metrics, why franchising has grown so slowly, investment by private equity firms, and more. National $ revenues (2002-2022, with 2027 forecasts).
The following are new analyses, most not found elsewhere:
2022 operating metrics
Market potential, by STATE
Market potential, by type of service (injectables, hair removal, etc.)
Financial/operations data from 2022 Company Franchise Disclosure Documents
Industry Profit & Loss Statement, profit margins
Esthetician, other staff salaries
Interviews with industry consultants
The top surgical & non-surgical cosmetic procedures, average costs.
Key Topics Covered:
Nature of the Industry
Market history, medical spa definition, legal guidelines and typical settings
Number of med spas in operation, industry structure, fragmented market, private pay, single-location operations, avg. revenues, recession-resistant business
Major trends: Discussions of: aging population, higher demand for non-invasive procedures, mobile med spas, IV therapy, private equity investor interest, laser equipment technology innovation, entry into weight loss services, membership models, patient financing,
Liability issues and staff qualifications
Industry regulation: ethical dilemmas
Types of non-surgical aesthetic procedures for improving skin appearance: hair removal, leg and facial veins, skin rejuvenation – in-depth descriptions
Medical spa practitioners – training, number, typical procedures performed: estheticians, laser technicians, cosmetic surgeons, dermatologists.
Consumer Demand: The Top Cosmetic Procedures
Summary of number of procedures performed: data from American Society for Aesthetic Plastic Surgery (2022), surge in non-surgical procedures in 2021.
Discussion of top 5 procedures surgical & non-surgical procedures for women, men and top 5 minimally-invasive procedures – number of procedures and spending
Highlights of ASAPS 2022 survey on cosmetic surgery: men vs. women, by age, top procedures. Comparison to historical surveys in 2005 and 2000
Procedure descriptions, costs
Industry Structure and Operating Ratios
AMSPA – Major Findings of 2022 member survey: patient demographics, patient visits per month, no. of med spas, avg. annual revenues per med spa, avg. spend per visit, ownership, repeat patients, percent single location operations, staff avg. salaries)
ISPA Surveys: data, major findings of 2023 U.S. Spa Industry Study: total no. of spas, total spa visits, Avg. visits per establishment
Medical spas: revenue per visit, per sq. ft., per staff person, visits per spa, sq. footage per spa, employees per spa
Discussion of Key Financial Formulas for Med Spas
Average cost of new med spa equipment:
Discussion of Operations Pitfalls – Opinions of Acara Partners
The Medical Spa Physician Report: major findings of Jan. 2012 survey
Marketdata online Med Spa Survey results (Aug-October 2012)
Sample income, expense and profit margin statement – market average, estimated by Marketdata – % of sales for variety of expenses
Acara Partners: med spa operations pitfalls to avoid, Groupon deals, marketing, budgets, etc.
Geographic Analysis – Market Potential, By State
Staffing – The Estheticians Outlook: average yearly salaries, projected job growth, regional demand, demographic profile
Medical Spa Nurse Jobs: avg. salaries, U.S. and regional
Average Salaries for:
Injection Specialist
Skin Care Consultant
Beauty Therapist
Skin Therapist
Licensed Esthetician
Spa Therapist
Master Esthetician
Lead Esthetician
Hair Removal Specialist
Wax Specialist
Medical Esthetician
Industry Size and Growth
Summary: Discussion of market history and reasons for recent growth
Factors affecting demand for med spa services: aging of population, state regulations, broader range of treatments available, broader customer base, technology-driven market
Current market status: Effects of the Covid-19 Pandemic, how consumer attitudes have changed
Effects of the Great Recession of 2008
Sources of market estimates: limitations and benefits, lack of government Census data, AMSPA, ISPA, primary research
ISPA surveys: 2023 Spa Industry Report findings
Discussion: 2020-2021: Performance During and After The Pandemic
Discussion: 2022- 2023 Performance
2027 Forecast: Key growth drivers over the next 5 years, rationale,
Growth markets:
Analysis of the Tattoo Removal Market – Reasons for growth, mkt. $ size estimates
Analysis of Facial Treatments Market, injectables – Reasons for growth, mkt. $ size estimates
laser Hair Removal Market – Reasons for growth, mkt. $ size estimates
Franchising In The Industry: Company Profiles
Radiance Medspa
Sona Med Spa
Dermani Med Spa
VIO Med Spa
MedSpa810 Franchising
Face To Face
Ideal Image Development Corp.
American Laser Skincare
KALOLOGIE 360 SPA
Venus Med Spa
For more information about this report visit https://www.researchandmarkets.com/r/2nuxsi
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