Tampa, FL (PRWEB) November 05, 2012
Tampa FL, November 5, 2012: Marketdata Enterprises, Inc., a leading independent market research publisher of “off-the-shelf” studies about service industries since 1979, has released a new 127-page report entitled: Medical Spas: A Market Analysis . This is a new market study about a growth market that has become more mainstream. The study examines the operations of medical or “med spas”, an interesting hybrid niche healthcare/cosmetic facility that straddles the medical and business fields.
There are the about 2,100 “medical spas” or “med spas” now operating in the United States. Medical spas only emerged ten years ago and exploded in number between 2007 and 2009. However, a major shake-out took place as franchises failed and the recession hit—exposing overoptimistic revenue assumptions and poor management.
As primary care MDs seek to replace lost income, and as baby boomers age, demand should grow for minimally or non-invasive cosmetic procedures made possible by an ever-developing generation of laser equipment.
“Headwinds that have limited med spa success in the past have included widely varying state regulations, botched procedures resulting from improper use of laser machines, poor expense controls, and a spate of failed franchises. However, most of these issues have been resolved and the business lessons have been learned.”, according to Research Director, John LaRosa.
- Marketdata estimates that revenues of the 2,100 U.S. medical spas will reach $1.94 billion this year, and $3.6 billion by 2016. Average revenues per facility are $924,000. Sales are forecast to grow 18% per year.
- The market is driven by laser machine technology advances, which achieve results almost as good as cosmetic surgery, but are less invasive or non-invasive.
- Americans spent $10 billion on cosmetic non-invasive procedures in 2011. 12 million cosmetic non-invasive procedures were performed, including Botox injections, dermal fillers, laser hair removal, chemical peels, microdermabrasion, and skin rejuvenation. Aging Baby Boomers are fueling continued growth.
- There are no national standards for defining or regulation medical spas and the lines are blurry between them and cosmetic surgeons and dermatologists’ practices. Botched procedures by poorly trained aestheticians or laser technicians has been an issue, since not all med spas have a physician on-site.
- Women account for 83% of med spa clients, and the average profit margin of a med spa is 14% of net sales. Start-up costs range from $700,000 to $1 million, with up to half of that devoted to buying or leasing the latest laser machines. These machines wind up being obsolete in 2-3 years as technology changes so rapidly. Labor costs take up another big chunk of expenses.
- Franchising has not worked in this market, as a growth model. Those that got into the business prior to 2009 had a poor understanding of the business, spent too much on marketing, didn’t control expenses, and forecasted overly optimistic revenues.
- A major shake-out weeded out the poor operators in 2009-2011, as the recession hit and consumers cut back on luxury expenditures provided by med spas.
- Non-surgical cosmetic procedures are generally safe when performed by properly trained and supervised providers. But the explosive growth in procedures – 123% in 10 years, according to the American Society of Plastic Surgeons – coupled with little state oversight, means consumers must be more cautious than ever about who they hire. State laws on who can perform minimally invasive procedures and whether a doctor needs to be present vary widely.
“There are many positives contributing to strong growth for med spas: the market for aesthetic procedures among 18-25 year olds is growing, especially for hair removal and tattoo removal, more MDs are looking to replace lost income with elective private pay services, and technical developments have enabled practitioners to offer a broader range of treatments. These technical developments have reduced the required treatment and recovery times, which in turn have led to greater patient demand.” according to John LaRosa.
ABOUT THE STUDY
Medical Spas: A Market Analysis, published in November 2012, is an independently researched “off-the-shelf” study. The study is 127 pages in length, has 32 tables, and costs $1,495. It is also sold by individual chapters at lower cost. For the research, Marketdata interviewed market consultants, owners/operators of med spas, laser equipment manufacturers, trade associations, spa industry magazines, and many others, in conjunction with custom Marktdata online and secondary sources.
This study examines the med spas market structure and history, revenues/growth, key market trends and issues, effects of the recession, consumer demand factors and demographics, extensive med spa operating ratios--results of three separate surveys, laser technology and suppliers, why franchising failed, investment, etc. Covers national revenues (2002-2011 estimates, 2012, 2013 & 2016 forecasts).
Marketdata Enterprises, Inc., is a 33-year old independent market research and consulting firm that publishes market studies and industry studies covering a wide range of service businesses. John LaRosa is available for interviews (813-907-9090). A free report table of contents is available by mail, fax., email or the Web. Contact: Marketdata Enterprises, Inc., 8903 Regents Park Drive, Suite 120, Tampa, FL 33647, or see http://www.marketdataenterprises.com
Marketdata Enterprises, Inc., Tampa, FL