Understanding the Med Spa Industry: A Comprehensive Guide for Managers

According to an American Med Spa Association industry report, the medical spa industry is growing rapidly. In 2018, just under 5,500 medical spas were operating throughout the U.S. That number is inching closer to 10,000 med spas in 2024.

While the growth of the med spa industry is impressive, it’s creating a more competitive environment for medical spa owners. If you manage a med spa, make sure you understand how the industry operates to set your business up for success.

Overview of the Medical Spa Industry

There are a couple of simple reasons why the med spa industry has expanded by the day in recent years.

The global medical spa market is worth about $19 billion as of 2023 and is expected to be worth nearly $80 billion by 2033. The U.S. medical spa industry, meanwhile, is worth almost $6 billion as of 2023 and is expected to be worth over $20 billion by 2033. These statistics suggest opening a medical spa is a lucrative business idea.

But these aren’t the only reasons new medical spas are seemingly opening up all the time in the U.S. The global medical spa market has also grown for these reasons:

• The high consumer demand for non-invasive cosmetic procedures
• The ahead-of-their-time technological advancements made within the industry
• The growing focus on health and overall wellness in the U.S.

Key Trends Shaping the Med Spa Industry

With the medical spa industry growing as quickly as it has, it’s almost impossible to keep up with all the latest trends shaping it. However, a few important trends deserve credit for taking medical spas to the next level.

Rise of Non-Invasive Treatments

The International Society of Aesthetic Plastic Surgery reports that almost 19 million non-surgical cosmetic procedures take place globally each year. People have become more comfortable undergoing these aesthetic procedures, especially in the U.S.

Just take a look at several statistics that back this up:

• Over 4 million people get Botox injections each year
• More than 1 million people get dermal fillers every year
• About 4 million people get laser, light, or energy procedures performed annually

Botox injections, dermal fillers, and laser treatments like laser hair removal are just some of the non-invasive aesthetic treatments Americans have fallen in love with. They’re easily accessible through med spas and appeal to both younger and older Americans looking for anti-aging treatments.

Integration of Wellness and Aesthetic Services

Once upon a time, the med spa industry was filled with businesses that focused solely on providing basic aesthetic treatments and anti-aging skincare solutions. Med spas continue to offer these traditional aesthetic procedures, including:

• Chemical peels
• Facial treatments
• Skin rejuvenation
• And other beauty treatments

They’ve also expanded and now offer more wellness services to enhance customer experience. There is a rising demand for holistic treatments like acupuncture and IV therapy at medical spas. These treatments increase the clientele for med spas by improving the customer experience and creating more repeat customers.

Technology-Driven Innovations

Technology has no doubt had a huge impact on how quickly the U.S. med spa industry has grown. The latest technology within the industry includes technological advancements like red light therapy that can safely and effectively treat fine lines and wrinkles.

As part of medical spa ownership and management, you must stay up-to-date on the technology affecting your industry. You can stay one step ahead of your competition by embracing technology and offering medical and spa services they can’t.

Personalized Client Experiences

The anti-aging treatments and other beauty treatments available at med spas aren’t one-size-fits-all services. Everyone will respond differently to spa services like chemical peels performed by healthcare professionals based on their age, the condition of their skin, and other factors.

For this reason, an increasing demand for personalized treatment plans at med spas exists. As the manager of a medical spa, you’ll need to extend customized skincare regimens and tailored treatment plans to increase client satisfaction.

Challenges Impacting the Med Spa Industry

The U.S. med spa market might look like it’s headed in the right direction right now, but it isn’t without its challenges. As the med spa industry expands, medical spas are left to compete for customers. Med spas also face other obstacles as they aim to survive in the suddenly crowded industry.

Regulatory Compliance

Each state has its own laws governing the med spa industry. But generally speaking, all medical spas must follow the same basic set of rules, including:

• They must have licensed medical professionals, including doctors, nurse practitioners, physician assistants, and medical directors, working at them.
• They must comply with the Health Insurance Portability and Accountability Act (HIPAA) when it comes to patients and their medical spa records.
• They must put patient safety measures in place and train their staff to abide by them.
• They must avoid making certain claims when advertising their med spas and steer clear of promising that medical procedures will produce guaranteed results.

Know the rules and regulations for the industry in your specific state to remain in constant compliance.

Managing Client Expectations

A 2018 survey found that just under 60% of Americans admit to not feeling comfortable in their own skin. Your med spa can help change this by showing potential clients how they can benefit from medical and spa services.

Just be careful about encouraging clients to set their expectations too high. If you mention that a certain celebrity undergoes laser treatments like laser hair removal, you may give them the impression they can look just like this person. This could lead to disappointment when physicians and other healthcare professionals finish performing medical procedures.

Set realistic expectations for clients and let them know they may need to schedule appointments in the future to undergo additional treatments.

Talent Acquisition and Retention

Because the med spa industry has skyrocketed in terms of popularity and profitability, there aren’t enough great medical professionals to go around. Your medical spa won’t experience the same significant growth as the med spa market if you don’t take these steps for your staff:

• Offer competitive compensation
• Deliver ongoing training opportunities
• Create a positive work environment

Growth Opportunities in the Med Spa Industry

Whether you have a single-location medical spa or several med spas you help manage, you can encourage even bigger growth. You will, however, need to look for growth opportunities and commit to capitalizing on them to become a major player in the med spa market.

Expanding Service Offerings

You might think your med spa is already offering more than enough services, but are you sure it’s checking all the right boxes? You might have the chance to expand your medical spa by offering more advanced services like regenerative medicine and body contouring.

Talk to your current patients about potentially adding new services to your med spa and ask for their opinions on which services they’d like to see. Find medical professionals who can carry out these cosmetic treatments and offer special discounts on them at first to motivate clients to try them.

Leveraging Digital Marketing

Establishing a stronger online presence for your med spa can take it to new heights. Create compelling content for your medical spa’s website and use med spa SEO techniques to send it soaring up search engine results pages.

Let your patients know you would appreciate them leaving online reviews for your medical spa, too. These reviews can put you in a better position to attract clients who learn about your medical spa online.

Enhancing Client Loyalty Programs

Are you rewarding your most loyal clients who turn to your medical spa for services by providing incentives to keep coming back? Are you also providing clients who tell their family and friends about your medical spa with referral bonuses?

Come up with a client loyalty program that delivers in each of these departments. This will incentivize both repeat customers and new clients to continuously come through your front door.

How Weave’s Solutions Can Support Your Med Spa Practice

Feeling a little overwhelmed with all your responsibilities as the manager of a medical spa? Weave can help by supplying the med spa software you need to help your business stand out. We can also support your medical spa in many other ways.

Streamlining Client Communication

Weave offers client communication tools like automated reminders, two-way texting, and phone integrations. They can enhance client engagement and reduce the number of no-shows your business encounters.

Improving Appointment Management

Weave’s online scheduling tool can help your medical spa manage appointments more effectively. Patients can schedule appointments on their own through your website to keep your calendar full.

Simplifying Billing and Payments

Weave’s tools for billing and payments, such as online bill pay and text-to-pay, can improve your medical spa’s monthly revenue and make it easier to manage its finances overall.

Enhancing Client Feedback and Reviews

Weave’s review management tool can enable your business to generate more positive client reviews. This can improve your medical spa’s reputation and allow it to attract more customers who come across these reviews.

Contact Us To Hear More About How Weave Can Help Medical Spas

Managing a medical spa in 2024 is easy in many ways, as Americans have shown a willingness to try new non-surgical treatments they may not have considered in the past. At the same time, the med spa industry is growing so fast that many medical spas are finding themselves in fierce competition as they fight to attract clients.

Weave can set you up with the technology you need to get a leg up on your competition. Get a demo to see how Weave can support your practice in achieving success in the evolving med spa industry.