Blending Beauty and Medicine: MedSpas Experience Rapid Growth

4 Min Read

Interest in Self-care and Anti-aging Solutions Drive Investment Opportunities 

Mixing medicine and beauty, medical spas (MedSpas) are experiencing notable growth in today’s healthcare sector. Combining non-surgical, medical services with the atmosphere of a day spa, MedSpas provide visitors with a variety of wellness, self-care, and cosmetics products and procedures, including Botox injections, chemical peels, laser hair removal, microdermabrasion, skin tightening, and body contouring.​¹​ 

According to market projections, the MedSpa industry is on track to reach $49.4 billion by 2030, and is expanding at a compound annual growth rate (CAGR) of 15.13%.² With cultural acceptance and participation on the rise, demand continues to build. MedSpa locations across the U.S. have nearly doubled to meet that demand – with that number expected to reach 12,000 locations by 2027.³ 

Healthcare Industry Investment Insights 

Key Factors Driving MedSpa Growth 

Pop Culture, Anti-Aging Trends, and Female Consumers Fuel the Market 

Cultural Acceptance and Awareness: The appetite for MedSpa’s beauty products and procedures is evident in today’s social media feeds. In today’s social media ad market, consumers show a keen interest in beauty influencers, with 70% reporting they follow MedSpa facilities and/or products on social media.⁴   

Anti-Aging Focus: Facials and anti-aging related procedures make up the top five trending MedSpa purchases in the U.S. today. (The following information includes the percent of MedSpa customers who purchased each treatment):⁵ 

1. Chemical peels: Using a chemical solution to remove the top layers of skin. (85%) 
2. Toxins and filler injections: Shots utilizing toxins, like Botox, to prevent muscle movement; this results in temporary smoothing of wrinkles. (82%) 
3. Microdermabrasion: Exfoliation of the top layers of skin, used to treat skin blemishes and imperfections. (68%) 
4. Photo-facial pulsed light: The use of light energy to minimize and improve the appearance of sun damage on the skin. (63%) 
5. Skin tightening: Treatments that stimulate the production of elastin and collagen to help minimize saggy or crepey skin. (63%) 

This trend towards rejuvenating and anti-aging skincare solutions shows no signs of waning and the global anti-aging market is on track to hit $60 billion by 2030.⁶ 

Women and Wellness: The MedSpa industry has long been watching for an uptick in male clientele; but according to 2022 data, there has yet to be a substantial overall increase.⁷ Women continue to make up the majority of the MedSpa market at 88%, with a large number (78%) being under the age of 55 years old.⁸ 

The MedSpa Industry Landscape and Challenges 

Diverse Competition, Private Equity Opportunities, and Staffing Challenges Are Key Considerations 

Competitive Landscape: Because the MedSpa market is segmented into single or group ownership, free-standing businesses, and medical practice-associated spas, competition is vast and varied.⁹  

North America drives 40.6% of the global MedSpa market, and leaders in the industry showcase a mix of manufacturers and service providers.¹⁰  

Private Equity Opportunities: Today’s MedSpa market share is highly fragmented with 90% independently owned and 10% platform/investment backed.¹³ But, with the MedSpa industry building momentum, private equity interest is on the rise. As consumer demand grows, investors have the opportunity to consolidate local MedSpas and build larger regional or national chains. A recent example of this can be seen in Dallas-based Thrive Capital’s investment in Formula Wellness (a company featuring aesthetics and actively seeking add-ons in the MedSpa space).¹⁴ The transaction is just one of 17 notable MedSpa acquisitions captured by Solomon Partners in an April 2024 report.¹⁵ 

Marketing to Men: While the MedSpa market has yet to show a large increase in male clientele, there is promising movement in the global male grooming market. Recent statistics show a reach of $81.2 billion in this sector by the end of 2024.¹⁶ Aesthetic and MedSpa treatments that attract the most male patrons are Botox injection treatments and hair removal services. Most notably, between 2000 and 2018, the International Society of Aesthetic Plastic Surgery (ISAPS) saw a jump of 403% in Botox procedures performed on men.¹⁷ Laser hair removal also experienced a significant increase, rising from 86,235 male procedures recorded in 2000 to 757,808 procedures in 2020.¹⁸ 

Risks and Restraints: Most MedSpas report that 40% of day-to-day challenges are tied to staffing. With increasing MedSpa demand from clients, establishments struggle to find and retain staff. Shortages can impact business operations and how services are delivered.¹⁹ An additional layer of complexity comes with ensuring staff members are properly trained or certified to administer treatments; a practice that can be both costly and time-consuming.²⁰ 

MedSpa Market Share Offers Strong Investment Opportunities 

With the U.S. aging population on the rise and female consumers driving the anti-aging and self-care market, MedSpas are a profitable option worth further research and exploration. Get in touch with us to learn more. We’ll connect you with experienced advisors and important healthcare industry insights to successfully inform your future investments. 

Resources:
¹Shaks, B. (2024, July 24). Medical Spa Marketing Stats and Trends for 2024. Brenton Way.
²Ibid.
³MedSpa Market Overview Q2 2024 (2024, April). Solomon Partners.
⁴Shaks, B. (2024, July 24). Medical Spa Marketing Stats and Trends for 2024. Brenton Way.
⁵MedSpa Market Overview Q2 2024 (2024, April). Solomon Partners.
⁶Anti-Aging Products – Market Study by Global Industry Analysts, Inc. StrategyR.
⁷Moeller, M. (2023, January 24). The 2022 Medical Spa State of the Industry. American Med
Spa Association.
⁸MedSpa Market Overview Q2 2024 (2024, April). Solomon Partners.
⁹Insights, G. M. (2024, March). Medical Spa Market Size & Share – Trends Report, 2032.
Global Market Insights Inc.
¹⁰Ibid.
¹¹Ibid.
¹²Ibid.
¹³MedSpa Market Overview Q2 2024 (2024, April). Solomon Partners.
¹⁴Trive Capital Partners with Formula Wellness, a Leading Provider of Holistic Wellness
Services. Trive Capital.
¹⁵Jansen, L., Leclerc, O., & Peters, N. (2024, February 1). Here to Stay: An Attractive Future for
Medical Aesthetics. McKinsey & Company.
¹⁶The Growing Male Market in Medical Aesthetics. Aesthetics Medspa Software. (2023).
¹⁷Ibid.
¹⁸Ibid.
¹⁹Medical Spa Market: Size, Share, Trend, Forecast, and Growth Analysis: 2022-2028.
StratviewResearch.com. (2024, December 9).
²⁰Ensuring Patient Safety in Medical Spas. American Med Spa Association. (n.d.).