Service industries market research publisher Marketdata Enterprises released a new 127-page report entitled “Medical Spas: A Market Analysis,” which details the growing market for medical spas that use aesthetic laser technologies for wrinkle and hair removal, skin rejuvenation, and other noninvasive laser-based aesthetic procedures.
The report says there are about 2100 medical spas or "med spas" now operating in the United States. These spas only emerged ten years ago and exploded in number between 2007 and 2009 before franchises failed and the recession hit, exposing overoptimistic revenue assumptions and poor management. But as we discuss in our 2013 Annual Laser Market Review & Forecast, aesthetic laser companies are doing extremely well and the med spa market should continue to grow as primary care MDs seek to replace lost income and as baby boomers age, desiring noninvasive cosmetic procedures made possible by an ever-developing generation of laser equipment.
"Headwinds that have limited med medical 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 Marketdata research director John LaRosa.
Marketdata estimates that revenues of the 2100 U.S. medical spas will reach $1.94 billion this year and $3.6 billion by 2016, with average revenues per facility of nearly $1 million dollars. Sales are forecast to grow 18% per year to 2016, as more med spas open.
The market is heavily driven by laser machine technology advances, which achieve results almost as good as cosmetic surgery, but are less invasive or noninvasive. Med spa 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.
"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," adds LaRosa.
Source:
http://www.laserfocusworld.com/articles/2013/01/Medical-spa-laser-aesthetic-market.html