Medical Spa Market

Market Overview

The global medical spa market size was valued at USD 16.11 billion in 2022. It is expected to reach USD 52.33 billion by 2031, growing at a CAGR of 14.1% over the forecast period (2023–2031). The demand for aesthetic treatments is increasing in the United States and Brazil, Japan, Italy, and Mexico. This is expected to fuel the expansion of the medical spa market in the forecast period.

A medical spa provides a range of skin care services, such as anti-wrinkle, fine line, acne therapy, dermal fillers, Botox injections, Juvederm, and high-tech laser procedures. These authorized treatments are all cosmetic, with the primary objective to enhance or rejuvenate a person's appearance. Moreover, non-surgical lifts and body-sculpting techniques like the recently invented cool sculpting are now extensively accessible.

The medical spa has changed to accommodate the ever-evolving needs of its patrons. Products that prevent aging are growing in popularity as consumers become more adept at social media. Major corporations now need to offer services that are both creative and effective. The growing need for skincare treatments that prevent aging is the main driver of this market and is predicted to persist as millennials age.

Market Dynamics

Global Medical Spa Market Drivers

Increasing Awareness About Self-Care and Antiaging Services

The medical spa market has been shaped by constantly changing customer demands. With most customers in this market having become social media savvy, awareness about antiaging solutions has been rising. Therefore, offering cutting-edge and efficient goods and services has become crucial for market participants. The fundamental driver of this market is still the increasing demand for antiaging skincare products, and as millennials get older, this tendency will only intensify. People between the ages of 30 and 39 accounted for 45% of cosmetic surgeries performed in the United States in 2020, comprising 6.1 million total cosmetic procedures, 684,000 surgical procedures, and 5.4 million minimally invasive procedures.

Technological developments in the beauty industry have increased the number of aesthetic enhancement procedures and services. Moreover, the entry of various Asian market players in the antiaging domain and millennials' adoption of preventive Botox procedures in recent years has driven market growth.

Growing Demand for Noninvasive Aesthetic Treatment

The need for less invasive therapies and aesthetic cosmetic procedures is rising as the world's population grows. Medical spas are gaining popularity due to their innovative anti-aging treatments, relaxing atmospheres, licensed specialists that provide top-notch services, and state-of-the-art technology. The International Society of Aesthetic Plastic Surgery stated that approximately 11.3 million surgical treatments and 13.6 million non-surgical procedures were carried out globally in 2019. Most non-surgical procedures were performed in the United States, whereas most surgical operations were performed in Brazil.

Minimal side effects, less discomfort, quicker recovery, and fewer postoperative complications are some factors influencing the rising popularity of minimally invasive procedures. According to annual plastic surgery procedural statistics, in 2020, 15.5 million minimally invasive cosmetic and surgical procedures were performed in the U.S. The need for aesthetic treatments is growing in the U.S., followed by Brazil, Japan, Italy, and Mexico, which is anticipated to drive the growth of the medical spa market during the forecast period.

Global Medical Spa Market Restraint

Risk Associated with Non-Surgical Procedures

The numerous risks and consequences of surgery limit the number of surgical procedures. In recent years, less invasive treatments like Botox and dermal fillers have become increasingly well-liked. The number of doctors who perform this surgery has dramatically increased in the past ten years. These less invasive treatments are sometimes preferred over plastic surgeries because they pose fewer health risks. However, aesthetic damage and physical scarring are common risks when undergoing any non-surgical cosmetic procedure.

There can also be a risk of infection, granuloma (lumps of cells from your immune system), bruising, skin redness, and pain or irritation. Moreover, patients with a BSR of 30 or above (obesity) or diabetes are more likely to suffer from problems such as blood clots in the lungs or legs. Smoking also increases risks and slows the healing process.

Global Medical Spa Market Opportunities

Growing Potential for Wellness Tourism

In contrast to industrialized nations, high-quality treatment is more affordable in developing nations. Cosmetic surgeries, such as breast augmentation, are not covered under insurance in most countries in North America and Europe. For instance, a breast augmentation procedure costs around USD 6,000 to an individual in the U.S. compared to around USD 2,000 in India. People travel from the U.S. and other countries in Europe to Hungary, Mexico, India, and Malaysia for dental treatments, helping them save about 55% to 70% of their treatment expenses.

Furthermore, emerging countries such as India are known to have renowned surgeons, attracting more than 1 million patients annually for cosmetic surgeries. Cosmetic prices in India are comparatively low (about 8% to 10% less) than in countries such as the U.S., the U.K., and other European countries. For instance, as per the Korea Tourism Organization report, in 2019, 497,464 international tourists visited South Korea. Moreover, many tourists seek cosmetic surgeries, including facial aesthetics procedures, breast implants, facelifts, dental implants, and liposuction. Improvements in healthcare infrastructure and high-quality medical services in developing countries will likely propel wellness tourism market growth.

Regional Analysis

Region-wise, the global medical spa market is segmented into North America, Europe, Asia-Pacific, and LAMEA.

North America Dominates the Global Market

North America is the most significant global medical spa market shareholder and is predicted to register a CAGR of 13.01% during the forecast period. Medical spa services are used to correct aging signs, skin contour, and depression reduction and perform lip and cheek augmentation. Moreover, face and body treatments to improve aesthetic appearance not only have applications in middle-aged women but also young men and women. The market is predicted to grow further due to the simple accessibility of various services and goods for various aesthetic operations in the United States and Canada. These factors are expected to increase demand for medical spas in North America. The International Spa Association (ISPA) estimates that 179 million Americans visit spas yearly.

Moreover, an increase in the number of medical spa facilities in the region is one of the primary drivers of the market expansion. For instance, Bliss, a producer of spa and beauty goods, introduced medical spa services in its numerous New York locations in September 2018. Similarly, Ideal Image, a provider of laser hair removal and cosmetic services, collaborated with Bliss to further integrate aesthetic treatments in its Manhattan facilities.

Europe is predicted to exhibit a CAGR of 14.5% over the forecast period. A rapidly aging population and increasing awareness about advanced aesthetic procedures contribute to market growth. The increase in per capita income of countries such as Spain is another factor leading to a rise in the adoption of medical spas for aesthetic treatments in European countries. Other factors, such as favorable reimbursement policies, have contributed to market growth. Medical spa services are subsidized by health insurance in many European nations. Several countries, including Slovakia, Switzerland, and Germany, even provide financial support for medical spa treatments received in other European countries. Medical spa treatments are gaining popularity due to increasing awareness, longer-lasting effects, and rising applications.

Asia-Pacific is the third largest region. Japan dominated the medical spa market in terms of revenue share. This can be attributed to high awareness about antiaging treatments, easy availability of high-quality services, and increasing prevalence of minimally invasive cosmetic treatments. Similarly, the demand for medical spas in countries such as China and India is expected to be driven by a large client pool and rising interest in aesthetic treatments. These treatments are being performed in beauty clinics and spas, mainly in urban areas in both countries. Singapore, Thailand, South Korea, and Indonesia are some of the emerging countries in the Asia-Pacific market.

Moreover, emerging wellness or medical tourism, the presence of various large and small players, and the increasing presence of global players are among the factors expected to promote the growth of the medical spa market in the Asia-Pacific region. Clinique La Prairie introduced a new medical menu in June 2021 at its Bangkok Medical Spa & Aesthetics location. The business collaborated with Minor Hotels' St. Regis Bangkok to launch a brand-new medical spa facility in March 2020.

Segmental Analysis

The global medical spa market is segmented based on services.

Based on service, the global medical spa market is classified into facial service treatment, body shaping and contouring, hair removal, scar revision, tattoo removal, and others. 

The facial treatment segment dominates the global market and is expected to exhibit a CAGR of 7.9% during the forecast period. Chemical peels, Botox, dermal filler injections, rhinoplasty, eye lifts, microdermabrasion, photo-facial pulsed light, neck lifts, and lip augmentation and reduction are common facial treatments in medical spas. The rising popularity of anti-aging treatments like Botox and dermal fillers mostly drives the significant market share. As per ISAPS, botulinum toxin and hyaluronic acid injections are two of the most common aesthetic procedures globally. In 2019, 6,271,488 botulinum toxin and 4,315,859 hyaluronic acid procedures were performed worldwide. In addition, 369,497 chemical peels, 270,917 brow lifts, 448,485, 821,890 rhinoplasty, and 448,485 facelifts were performed globally in 2019.

Furthermore, dermal fillers are becoming more popular among women in their late 20s, which is good for category growth. The "Zoom effect" is a significant additional component in the rising demand for facial treatments. The demand for cosmetic surgical operations is rising as more people want to work from home, wear masks in public, and want to look nice in Zoom conversations. Women's top cosmetic wish lists include rhinoplasty, fillers, and neurotoxins. Moreover, the number of teenagers seeking rhinoplasty increased in 2020, with nearly 41% of U.S. cosmetic surgeons accepting this as a rising trend and the desire to look better during video conferencing. This trend is expected to favor the growth of the facial treatment segment.

Body contouring is a device-based treatment that is witnessing unprecedented demand in the market. Predictions state that noninvasive fat removal methods will someday surpass invasive treatments like liposuction. Body contouring operations are provided by 54.07% of medical spas in the U.S., according to the American Med Spa Association's 2017 State of the Medical Spa Industry report. The medical spa paradigm fits ideally with the developments in energy-based minimally invasive gadgets, which are also expected to create new prospects for aesthetic improvement.

Furthermore, fewer risks, no recovery time, and natural-looking results are some advantages of noninvasive body contouring, boosting demand. ISAPS states that non-surgical fat reduction is the fourth leading non-surgical cosmetic procedure. In 2019, 462,769 non-surgical fat reduction surgeries were performed worldwide. Moreover, increasing desire to achieve an ideal body image and rising spending capacity are factors propelling segment growth. The number increased to 560,464 in 2020. As per the American Society of Plastic Surgeons (ASPS), in 2020, around 357,938 noninvasive fat reduction and 188,509 non-surgical skin tightening procedures were performed in the U.S.

Laser hair removal is the third-highest revenue-generating treatment in medical spas. One of the biggest advantages of a laser hair removal device is that it requires little time for the operator to complete the procedure; however, it is relatively high priced. Hence, providers constantly try to increase their patient pool to earn more money, making this segment highly profitable. According to the American Med Spa Association's 2017 State of the Medical Spa Industry report, 70% of medical spas in the U.S. offer laser hair removal services. The demand for hair removal has always been high among women.

In men, the adoption of laser hair removal is surging tremendously. Men belonging to younger and millennial generations are increasingly interested in hair removal. According to ISAPS, in 2019, 1,042,951 hair removal procedures were performed worldwide, with 113,622 procedures done on men. In 2020, the number of hair removal procedures increased by 76.1%, reaching 1,837,052; ASPS shows that in 2020, around 757,808 laser hair removal procedures were performed in the U.S. The growing demand for hair removal can also be attributed to the effectiveness of laser-based devices. Moreover, laser hair removal reduces hair growth by 90%. This appeals to people wanting permanent hair removal without any pain, which will likely fuel segment growth.

Recent Developments

• June 2023- The Kurotel Longevity Medical Center and Spa in Brazil is the first wellness location in South America to become certified as 'cancer aware' by Wellness for Cancer – the first organization to establish standardized, objective, cancer-focused training and business criteria for the spa and wellness industry.
• June 2023- The Kurotel Longevity Center and Spa in Gramado, Brazil, developed several new sustainable and responsible practices initiatives. Within the spa, these include motion sensors being installed for room lighting, rational use of dryers, and a new cistern that can be used to collect and treat rainwater for reuse in gardens, toilets, and cleaning.