Why Medspas are Growing Faster than the Economy
When you’re in the medical spa business, you can’t help but notice that this is an industry that’s not just doing well, it’s doing very well.
How well? We’re glad you asked (OK, you didn’t, but humor us). The economy has been growing around. 2 to 3 percent the last several years while the medical spa market has been growing around 12 percent.
These aren’t numbers we created ourselves. Last year, a new report published by Allied Market Research, titled “Medical Spa Market by Service: Global Opportunity Analysis and Industry Forecast, 2017-2025,” found that the global medical spa market has been growing and is projected to grow at a compound annual growth rate of 12.2 percent from 2018 to 2025.
Of course, it isn’t unusual for some industries to do far better than the economy as a whole. You’re always going to have some industries that are flourishing whereas others will not be doing so hot. For instance, the communications equipment manufacturing industry has been shrinking, at a rate of -3.2 percent in recent years, according to a recent list put out by the career site, Ladders.com. And guess what else is shrinking? Tobacco manufacturing, at a rate of -4.7 percent. It’s the highest on the list. We don’t think that’s an accident that the tobacco manufacturing industry is shrinking and medical spas are expanding.
After all, smoking ultimately kills people, and while a few puffs may make someone who is addicted to smoking feel momentarily good, overall, it doesn’t make you feel better. But going to a medical spa, you leave feeling and looking better than when you came in. No wonder it’s thriving. But we can cite a few other reasons as well.
Innovations are driving the industry.
As demand for medical spa services and the profits go up, and more medical spas open for business, that’s all been helping to bring state-of-the-art equipment into the industry. We are continually seeing new advances in laser technology and minimally invasive techniques that wouldn’t have been possible 10, or even five, years ago.
Many of the innovations at medical spas like Beverly Hills Rejuvenation Center are also not only driving profits but widening the profit margins as well. For instance, it’s becoming more commonplace to be able to invest in one piece of equipment that can handle multiple treatments or applications, rather than having to buy, say, five pieces of separate equipment.
This is still a young industry.
On one hand, we don’t see the medical spa industry shrinking for the same reason that funeral homes and tax preparation services thrive. Aging is pretty certain. People will always get older, and we tend to think that looking better and feeling better isn’t something that people will sour on. So, a century from now, do we think medical spas will be flourishing? We do.
But as an industry, medical spas are not a hundred years old. They’ve been around since the late 1990s and have grown out of plastic surgery, which really took off during the 1960s and 1970s. In other words, medical spas are in their infancy and have a lot of room to grow. The public is still just getting wind of what’s available, and as treatments become more and more cost effective, medical spas are being seen as more accessible to the widespread public than ever. That’s driving people and spreading word of mouth, which expands the customer base even more. Fear of missing out is something that plague all of us; when we see our friends and family members, our own age or older, looking younger than us, we tend to want in on that. So, this is an industry with a lot of room to grow and evolve.
People always want to look and feel healthier.
We don’t think this is a wild prediction, but we don’t think people are ever going to be excited to have wrinkles, forehead lines, crow’s feet, stretch marks or unwanted fat. But what is surely helping this industry are the Baby Boomers, who as you’ve likely noticed, aren’t following the normal pattern set by generations before them. They aren’t downsizing their homes. Some of them are running for president, and some are just running. People simply aren’t content to play shuffleboard and sit on a porch watching the world go by, simply because they’ve reached a certain age. For instance, Christie Brinkley, at 65, was recently captured on video and film, wearing a bikini on the beach and looking amazing as ever.
Nobody’s quite figured out how to stop aging, but acting old is finally out of style.
And that doesn’t seem like a trend that will ever come back.