How’s 2024 going for you so far? Are you on target with your goals?
The med spa industry’s popularity continues to rise, despite the challenges that occurred as a result of the COVID-19 pandemic and is expected to thrive in the coming years. Driven by a growing consumer focus on self-care, skin care, anti-aging services, and wellness overall, in 2023, the med spa market was estimated at USD 18.6 billion and is projected to grow at an average annual rate of 15.13% from 2024 to 2030.
Medical spas combining spa treatments with medical procedures, offer a wide range of services that appeal to individuals with disposable income and a passion for beauty and wellness. This healthy growth brings into focus the increasing demand for med spa services and the great opportunities available for businesses in this space.
Market overview and growth drivers
According to the American Med Spa Association (AMSA), there is a substantial demand for minimally invasive treatments, including these four treatments:
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Chemical Peels | Non-Surgical Skin Tightening | Body Sculpting | Tattoo Removal |
These treatments appeal to a broad demographic, not only women but men as well, and of a wider age range than you’d expect due to their lower risk, minimal downtime, and effective results compared to traditional surgical procedures.
Facial treatment popularity
The facial treatment segment accounted for a one-third share of the global market revenue in 2020 and is set to have the largest growth rate of all the segments due to its rising popularity among both sexes. The increasing desire for facial treatments is commonly influenced by social media influencers, is projected to contribute to the segment's growth.
The facial treatment segment led the market in 2023, capturing a revenue share of 54.1%.
The facial treatment dominance is primarily attributed to the rising demand for anti-aging treatments such as Botox® and dermal fillers. Data from the International Society of Aesthetic Plastic Surgery (ISAPS) underscores this trend, revealing that over 9 million botulinum toxin and 4.3 million hyaluronic acid procedures were performed globally in 2022. These figures demonstrate the growing popularity of non-surgical aesthetic treatments worldwide.
Speaking of hyaluronic acid, in 2023, the global hyaluronic acid market size was valued at USD 10.04 billion. It is projected to grow at a compound annual growth rate of 7.7% from 2024 to 2030.
Emerging trends and future projections
Looking ahead, the body shaping and contouring segment is expected to experience the fastest growth rate from 2024 to 2030. Non-invasive fat reduction procedures are predicted to surpass traditional surgical methods like liposuction. According to Grand View Research, the Aesthetic Society's 2022 indicated that 54.3% of medical spas in the U.S. offer body contouring services.
Most med spa clients are between their mid-30s to their mid-50s with a higher-than-average purchasing power. The industry is witnessing a significant shift in its customer base. In 2023, women accounted for the largest revenue share at 85.3%, with a variety of women-oriented services driving this growth. However, the male segment is anticipated to see a projected growth rate from 2024 to 2030. More men are recognizing the benefits of wellness and relaxation treatments, leading to an increase in male-focused skincare products and services. This growing male customer base, coupled with targeted marketing strategies, is expected to further boost the segment's expansion.
Alex Thiersch of AmSpa says that med spas should continue to focus on what brings patients into the med spa: injectables. “Botox, Dysport and fillers still dominate the industry,” he notes, adding that, “Study after study has found that these are the treatments that people are most curious about. And although it is easy for med spas to become distracted by new treatments and fancy machinery, the beating heart of the aesthetics industry is, and will continue to be, injectables…Injectables are still the most reliable way to attract patients and, with developing efficiencies and increasing innovation, we are seeing practices make a lot of money from injectables.”
Benchmarking your med spa's performance
The med spa industry continues to grow so it's important for business owners to evaluate their performance against industry standards. Here are some key benchmarks to consider.
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Revenue Growth Have you seen a significant increase in revenue? The med spa industry has added more than $4 billion in total revenue over the past three years. | Employee Expansion Have you expanded your team this year? More than 30,000 jobs have been created in the med spa sector in the last three years, with over 100,000 employees now working across more than 11,000 med spas in the U.S. | Popular Services Are you offering the most sought-after treatments? The facial treatment segment dominated the market with a 54.1% revenue share in 2023. |
Leveraging expertise for growth
Staying on top of the med spa industry's competitive landscape requires a strategic approach. Engaging with digital marketing and business operations experts can help med spa owners address their top concerns and achieve their goals. Here’s how:
Targeted Marketing Campaigns: Develop and execute marketing strategies that effectively reach potential clients, reducing client acquisition costs (CAC) and increasing brand visibility.
Client Retention Programs: Implementing loyalty programs, personalized follow-ups, and enhancing the overall client experience can significantly boost patient retention rates.
Online Reputation Management: Monitoring and responding to online reviews and encouraging satisfied clients to leave positive feedback can help build a strong online presence. It is also another marketing tool pushing potential patients to click the link or make the call for an appointment or consultation.
Technology Integration: Consulting on the best software and tools can streamline operations, making it easier to manage appointments, client records, and marketing efforts.
Process Improvement: Providing insights on ways to reduce the cost and steps in your processes saves on expenses and increases ROI.
Visit our services page for a list of digital marketing and business operations services we offer.
As the med spa industry continues to evolve, staying informed about market trends and leveraging expert advice can position your business for sustained growth and success. By focusing on both current performance and future opportunities, med spa owners can navigate the industry's challenges and thrive in an increasingly competitive market.
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If you are interested in reading more about the state of the med spa industry and reviewing statistics, here’s our list or resources:
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