Medical Spa Market

The global medical spa market had a value of USD 16.4 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 14.97% from 2023 to 2030. The market's expansion is driven by factors such as increasing consumer awareness of self-care and anti-aging services and the rapid growth of the wellness tourism industry. The American Med Spa Association (AMSA) reports a strong demand for minimally invasive treatments like chemical peels, non-surgical skin tightening, body sculpting, and tattoo removal. Additionally, the availability of wellness packages in hotels has contributed to the growing demand for wellness-focused vacations.

The medical spa industry has evolved in response to changing customer preferences. With customers becoming more active on social media, awareness of anti-aging solutions is on the rise. The primary driver in this market remains the increasing demand for anti-aging skincare solutions. According to the 2021 plastic surgery statistics from the American Society of Plastic Surgeons, individuals aged 30 to 39 accounted for 45% of cosmetic surgeries in the U.S., including 6.1 million total cosmetic procedures, comprising 684,000 surgical procedures and 5.4 million minimally invasive procedures.

The rise in consumer disposable income, particularly in emerging economies, and the growth of the tourism industry are also contributing to the demand for medical spa services. Leading companies are offering personalized beauty treatments at premium prices to enhance their market position. A notable trend in the industry is the incorporation of biophilic design and wellness architecture in the overall structural design of the facilities.

COVID-19 Medical Spa Market Impact: 13.8% increase from 2020 to 2021
Pandemic Impact
• The American Society of Plastic Surgeons (ASPS) reported a 16% decrease in the number of cosmetic minimally invasive procedures compared to 2019, attributed to the impact of COVID-19.
• The industry as a whole experienced negative effects due to movement restrictions implemented in different countries and the postponement of elective procedures. In the United States, many operators were compelled to temporarily close their establishments to adhere to the guidelines set by the CDC.

Post COVID Outlook
• The relaxation of social restrictions and widespread vaccination efforts are anticipated to enable medical spas to resume their treatments while implementing preventive measures and adhering to COVID-19 guidelines. Numerous medical spas have already begun offering virtual consultations to patients, which is expected to contribute positively to market growth in the future.
• Due to phenomena like the "Zoom Boom" or "Zoom effect," cosmetic surgeons worldwide are observing a notable surge in patient numbers, particularly in countries like the United States, Australia, and Japan. This surge is projected to drive growth in the coming years.

The wellness tourism sector's rapid expansion is generating favorable prospects for new players who can provide an innovative blend of services across multiple domains, including hospitality, travel, beauty treatments, and fitness. Additionally, the growing popularity of dermal fillers among women in their late 20s and the increasing demand for laser hair removal and facial procedures are expected to drive market growth.

Age Group Insights
In 2022, the adult segment emerged as the dominant force in the market. The majority of medspas catered to customers in their mid-30s, 40s, and 50s, as these adults show a growing interest in body contouring and anti-aging treatments. According to the 2022 AmSpa Medical Spa State of the Industry Report, approximately 26.0% of female customers in the U.S. fell into the age group of 35-54. The segment's growth is fueled by the strong purchasing power of individuals aged 35 to 50 and the increasing demand for dermal fillers within this age range.

The influence of social media has a significant impact on the rising demand for facial treatments among adolescents. Teenagers are increasingly integrating anti-aging products and treatments into their beauty routines, seeking scar-free skin and opting for nonsurgical scar revisions.

During the forecast period, the geriatric segment is projected to experience substantial growth. According to the World Health Organization (WHO), the global population aged above 60 is expected to reach 1.4 billion by 2030. The desire to maintain a youthful and attractive appearance even in old age is driving the growth of the geriatric segment. People aged above 60 are particularly interested in maintaining a healthy life, leading to an increase in visits to medspas.

Gender Insights
In 2022, the largest share of revenue in the market was attributed to the female segment. With women being the primary customers, there is a growing emphasis on designing services tailored specifically to their needs, which is having a positive impact on the segment's growth. The increasing adoption of various aesthetic treatments by women is also contributing to the growth of this segment. According to The Aesthetic Society 2021, women accounted for approximately 94.0% of all aesthetic procedures.

Women seek spa services to enhance their physical well-being, boost self-esteem, and gain self-confidence. Many women are interested in improving their facial appearance, leading to a rise in visits for Botox and dermal injections. The AmSpa 2022 Medical Spa State of the Industry Report states that around 88.0% of medspa visitors in the U.S. were females.

The male segment is expected to experience lucrative growth during the forecast period. Men have increasingly realized the health benefits and relaxation offered by medical spa services, leading to a greater adoption of these treatments. Consequently, the industry is developing skincare products and services targeted specifically towards men. The growing number of male customers and the implementation of targeted marketing strategies for men are expected to drive the growth of this segment.

Service Provider Insights
In 2022, the segment with single ownership accounted for the largest share of revenue. According to the American Med Spa Association, more than 66% of medical spas were owned by a single individual, and on average, they employed eight employees. Among these, approximately 63% were owned by non-MDs/surgeons.

The industry is predominantly made up of small-sized medical spa facilities with single ownership and a single location, equipped with the latest technology. With increasing rates of burnout and declining reimbursement rates, more physicians are opting to become medical spa directors or sole owners or co-owners of these facilities.

Medical spas associated with medical practices are adopting an integrated and holistic approach to healthcare and wellness, involving highly skilled and experienced practitioners. These facilities align their wellness therapies and treatments with other specialties of the hospital, providing integrated care. As a result, there is a growing demand for such facilities in recent years.

Service Insights
In 2022, the facial treatment segment emerged as the dominant force in the market, capturing a revenue share of over 50.0%. This segment's prominence can be attributed to the growing demand for anti-aging treatments like Botox and dermal fillers. Globally, botulinum toxin and hyaluronic acid injections were among the most popular non-surgical aesthetic procedures, with a total of 6,213,859 botulinum toxin and 4,053,016 hyaluronic acid procedures performed in 2020, according to ISAPS.

During the forecast period, the body shaping and contouring segment is expected to experience the fastest growth. Non-invasive fat reduction procedures are anticipated to surpass surgical methods such as liposuction. The American Med Spa Association's 2017 State of the Medical Spa Industry report revealed that 54.07% of medical spas in the U.S. offer body contouring services. Advancements in energy-based minimally invasive devices align well with the medspa model and are expected to create new opportunities for aesthetic enhancement.

Medical spas offer high-revenue treatment services, and their costs are continuously rising. For instance, according to the Supplement to Modern Aesthetics by the American Med Spa Association, the average price of laser hair removal in the U.S. increased by approximately 51% between 2011 and 2016, while the cost of tattoo removal rose by 42%. This trend is supported by the global increase in out-of-pocket expenditure, which further drives market growth.

Regional Insights
In 2022, North America emerged as the dominant region in the market, capturing a share of over 40.0%. This was primarily due to the higher expenditure on wellness tourism, including both domestic and international traffic, compared to other regions. The U.S. and Canada offer easy accessibility to a wide range of services and products for various aesthetic procedures, further bolstering the market's growth. However, the onset of the COVID-19 pandemic in 2020 resulted in a decline in the number of aesthetic surgeries, potentially impacting the region's market growth.

Asia Pacific is expected to exhibit the highest compound annual growth rate (CAGR) during the forecast period. This can be attributed to the increasing popularity and growth of the wellness tourism sector, along with rising expenditure on wellness tourism. The region is experiencing a growing interest in experiential travel, and the affordability of flights and travel options is also contributing to the expansion of the regional market.

The Asia Pacific market is characterized by the presence of various large and small players, as well as an increasing number of global players entering the market. For instance, in June 2021, Clinique La Prairie introduced a new medical menu at its Bangkok Medical Spa & Aesthetics destination. Furthermore, in March 2021, the company partnered with St. Regis Bangkok, owned by Minor Hotels, to establish a new medical spa facility. These developments indicate the potential for market growth in the Asia Pacific region.

Key Companies & Market Share Insights
To strengthen their market position, companies are implementing various strategies such as product and service development using innovative technology, forming partnerships with other firms, expanding their outlets, and making business investments. For example, in November 2021, Chic La Vie introduced a Botox skin rejuvenating procedure specifically for men, aiming to initiate a new trend where skin rejuvenation spa procedures are not limited to females only.

In August 2019, Longevity Health & Wellness Hotel expanded its service unit in Portugal. The spa center is now equipped with advanced wellness and preventative diagnostics, therapies and programs, as well as modern integrative and regenerative medicine.

In September 2018, Bliss, a manufacturer of spa and beauty products, launched medical spa services at their New York locations. Bliss partnered with Ideal Image, a provider of laser hair removal and aesthetic services, to incorporate aesthetic services into their Manhattan locations, expanding their offerings to meet customer demands.

Some prominent players in the global medical spa market include:
• Chic La Vie
• Clinique La Prairie
• Kurotel Longevity Medical Center and Spa
• Lanserhof Lans
• The Orchard Wellness Resort
• Biovital Medspa
• Allure Medspa
• Longevity Wellness Worldwide
• Serenity Medspa
• Vichy Celestins Spa Hotel
• Brenners Park-Hotel & Spa
• Sha Wellness Clinic
• Cocoona Centre of Aesthetic Transformation
• Mezzatorre
• Aesthetics Medispa
• Lily's Medi Spa
• Lisse
• DRX Clinic
• Westchase Medspa
• Chiva Som
• Mandarin Oriental Hotel Group Limited

Global Medical Spa Market Segmentation

Service Outlook (Revenue, USD Million, 2018 - 2030)
• Facial Treatment
• Body Shaping & Contouring
• Hair Removal
• Scar Revision
• Tattoo Removal
• Other Services

Age Group Outlook (Revenue, USD Million, 2018 - 2030)
• Adolescent
• Adult
• Geriatric

Gender Outlook (Revenue, USD Million, 2018 - 2030)
• Male
• Female

Service Provider Outlook (Revenue, USD Million, 2018 - 2030)
• Single Ownership
• Group Ownership
• Free-standing
• Medical Practice Associated Spas

Regional Outlook (Revenue, USD Million, 2018 - 2030)
• North America
o U.S.
o Canada
• Europe
o U.K.
o Germany
o France
o Italy
o Spain
o Denmark
o Sweden
o Norway
• Asia Pacific
o Japan
o India
o Australia
o China
o Thailand
o South Korea
• Latin America
o Brazil
o Mexico
o Argentina
• Middle East & Africa (MEA)
o South Africa
o Saudi Arabia
o UAE
o Kuwait