The medical spa industry is experiencing unprecedented growth, with facilities sprouting in storefronts and office buildings nationwide, leading to a significant real estate boom driven by high-margin aesthetic procedures and minimal governmental oversight.
According to the American Med Spa Association’s 2023 State of the Industry Report, this sector focuses on advanced, nonsurgical aesthetic treatments like Botox, fillers, and GLP-1 injections, generating a staggering $17 billion in revenue and employing around 100,000 individuals.
The number of medical spas in the United States has soared from approximately 8,900 in 2022 to around 10,500 in 2023, with an average annual revenue of about $1.4 million per spa.
With patients spending an average of $527 per visit and each spa seeing around 245 patients monthly, it’s clear that the med spa business is thriving.
However, this rapid expansion raises concerns about regulatory oversights, as many practitioners, including nondoctors like nurses and physician assistants, are now able to perform certain medical procedures.
Industry experts caution that the swift proliferation of med spas could lead to a market saturation point, potentially jeopardizing both the businesses and their clients.
Veteran aesthetician Steven Dayan, a board-certified facial plastic surgeon and founder of Impressions Face + Body in Chicago, noted a stark contrast to the industry landscape when he started in 2000, stating, “They’re everywhere. Every week, another med spa. And they’re opening up in malls and on street corners, and beauty salons themselves are doing it.”
Linda Miriam, founder of Crunchy Buzz, which specializes in managing marketing for wellness brands and med spas in California, shared that many of her clients initially starting with one clinic are now expanding into neighboring suburbs to capitalize on locations with substantial foot traffic.
She explained, “It’s also been really difficult to get a space, because there are all these considerations now, like if the landlord has another med spa within the area.”
Experts like Dayan are questioning whether the market might reach a saturation point.
Moreover, the industry’s regulatory landscape is fraught with challenges that might endanger both entrepreneurs and patients.
Various unregulated procedures conducted by less experienced personnel have already led to patient harm, including a tragic instance in Texas where a woman died following an IV therapy treatment from an unlicensed individual.
In another alarming case, a California-based aspiring influencer suffered a drug-resistant infection after receiving treatments aimed at boosting her energy and aiding weight loss, leaving her scarred and still in recovery over two years later.
Malpractice claims against med spas are on the rise, resulting in substantial financial repercussions.
In 2023, a medical spa in Pennsylvania faced a $1.2 million judgment due to botched chin injections administered by a nurse whose license was suspended.
Anne Schneider, an associate attorney at Fenton Jurkowitz Law Group, remarked, “Within the balance of the law, these people are allowed to practice maybe when they’re not quite as qualified to do so, and then it leads to this damage.”
Despite the risks, the pathway to opening a med spa has become more accessible, with pathways for consumers to finance their procedures, further fueling the industry’s boom.
Mike Petrakis, founder and CEO of PowerPay, highlighted the increasing consumer demand for financing options related to these treatments, particularly following the pandemic as individuals shifted their financial focus toward wellness and aesthetic enhancements.
He indicated, “We’ve also seen financing play a key role in enabling med spas to expand into new retail because it increases their ability to attract a broader client base.”
Dayan expressed concerns that many of the new spa operators might provide lower-quality experiences, potentially leading to consumer backlash if that becomes the norm.
He observed, “Eventually, when you keep training people, you get to a saturation point where you’re not producing anyone good anymore … What’s the complication from that? The average result is not as good because you regress to the mean.”
When Dayan chose his location in Old Town, Chicago, he ensured that there was ample space for an operating room necessary for specific procedures.
In contrast, many smaller med spas performing only Botox and fillers can operate in very limited spaces, which raises quality concerns.
Kimberly Mack, owner of Skin Laser & Med Spa, opened her operation in a residential building, intending to serve both local residents and the broader community in Chicago’s Streeterville neighborhood.
Mack explained that her majority customer base is from outside her building, often driven by word of mouth.
She added, “The growing cultural acceptance of aesthetic treatments for everyone is creating strong demand for med spa services in Chicago and the surrounding suburbs. It’s a booming market, and I expect it to continue to grow rapidly.”
While regulations governing med spas vary across the country, some states, like Illinois, have stepped up oversight, mandating that medical spas be owned and operated by licensed medical professionals.
This includes requirements that procedures like Botox and fillers must be performed or supervised on-site by a physician.
Other states, such as Ohio and Rhode Island, are implementing stricter regulations on certain injectable procedures.
However, many states still have lax regulations, with limited requirements for physician supervision and ownership in med spas.
In Texas, Governor Greg Abbott recently vetoed new legislation aimed at prohibiting non-medically licensed practitioners, such as barbers and cosmetologists, from administering injectable treatments.
Anne Schneider articulated the challenge of balancing regulation: “There’s a balance between restricting business and restricting people who are technically legally able to have these practices, and then the safety of the public.
I think right now, if I had to guess, the whole subject isn’t quite being taken very seriously.”
Petrakis forecasts that increased future regulatory oversight could build long-term trust in the industry, potentially making medical spas a safer investment.
Despite the issues presented, Schneider does not anticipate a decline in consumer interest, stating, “The old saying that beauty is pain seems to ring true, and in this digital age, where there’s a constant perfection standard for beauty, the public will not change their approach.”
image source from：bisnow
