The global medical spa market was valued at US$11.1 billion in 2017, and is projected to reach US$27.6 billion by 2025, which implies a compounded annual growth rate (CAGR) of 12.2% over the period, according to a report published by Allied Market Research, titled, "Medical Spa Market by Service: Global Opportunity Analysis and Industry Forecast, 2017-2025."
Medical spas combine medicine and aesthetics to provide cosmetic treatments in a spa ambience. Anti-wrinkle injections, Botox injections, fine-line reduction, acne therapy, and fillers are some of the various treatments included in medical spas.
Aesthetic medicine and cosmetic treatments for beauty enhancement and the growing wellness trend in developed countries are driving this market. However, the high cost of medical spa procedures is restricting market growth, especially in developing countries.
Key trends in the medical spa sector
- The facial treatment segment accounted for a one-third share of the global market revenue in 2017;
- The body shaping segment accounted for one-fifth of market revenue. This segment has been boosted by recent advances in body shaping, which include various non-invasive techniques that enable less hospitalisation and faster recovery. Thus, such advances in the body shaping segment should continue to drive growth in this segment;
- The hair removal segment accounted for a one-sixth share of global market revenue in 2017. Growth in this segment can be attributed to innovations in laser technology, which render permanent hair removal feasible;
- The tattoo removal segment accounted for about one-seventh revenue share of the market in 2017, and is expected to register a CAGR of 11.8% from 2018 to 2025;
- India is the fastest-growing country in the Asia-Pacific medical spa market, projected to grow at a CAGR of 14.2% over the period 2018 to 2025;
- Brazil is the fastest-growing country in the LAMEA (Latin America, Middle East and Africa) medical spa market, expected to achieve a CAGR of 13.9% over the period 2018 to 2025;
- In 2017, North America was the dominant revenue contributor, due to the growing wellness trend and the early adoption of new technologies in this sector;
- However, Asia-Pacific is expected to achieve the highest CAGR over the period 2018 to 2025, due to rising incomes in heavily populated countries, such as India and China. In addition, medical tourism will also fuel market growth.
Key players operating in the global medical spa market include: Allure Medspa, Biovital Medspa, Canyon Ranch, Chiva Som, Clinique La Prairie, Hyatt, Sciton, True Skin Care Center, Vilalara Longevity Thalassa & Medical Spa, Spa Vitoria (plastic surgery); Lanserhof; and Westchase Medspa. Other players operating in the supply chain include: Cynosure (energy-based aesthetic and medical treatment systems); Lumenis (medical equipment & laser devices manufacturer); and Syneron Medical (cosmetic surgery devices).
What treatments are leading the medical spa growth?
Eyebrow microblading (a tattooing technique in which a semi-permanent pigment is added to the skin) is a major treatment that is driving growth for medical spas, according to a recent report, released in May 2018 by the American MedSpa Association (AmSpa), which was based on data from surveying roughly 500 US-based medical spas.
Alex Thiersch, founder and director of the American MedSpa Association (AmSpa), remarks that, “I think everyone has to be surprised with the way that microblading has come on the scene: the reception, the profit and the patient demand.”
The report also found that 50% of US medical spa owners expected that their revenues would increase by more than 10% in 2018. Also, with many US states attempting to define what procedures can be performed by what level of qualified personnel, nurse practitioners will likely play bigger role, according to Thiersch, including serving as de facto medical directors when doctors are offsite.
Male clientele not growing as fast as predicted
On the other hand, Thiersch is surprised by the lack of growth in male clients. “Industry experts have been predicting an increase in the male patient population at med spas for years, but it has held steady at 15%,” he notes, adding that, “Men represent close to 50% of the population and we know that they have many of the same concerns as women when it comes to aging, but that is not translating into the marketplace as much as we thought.” Thiersch is optimistic, however, that as men age, “they will undoubtedly come around. It is just taking a little longer than we thought, so perhaps as an industry we need to rethink how to reach this population.”
Injectables remain a core product
Meanwhile, Thiersch encourages med spas to continue to focus on what brings patients though the door, namely 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,” according to Tiersch, who adds that,“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.”
Longer-lasting botulinum toxin injections which help stop muscle spasms when injected directly into the muscle are also a mainstay.