Introduction
The medical spa industry has been growing at an unprecedented rate in recent years. This surge in popularity is largely fueled by millennials and an increasing number of men seeking out these wellness-focused, aesthetic services.
"We see two new groups starting to emerge: millennials and men..."
This growth trend of medspas is not solely a historical observation. Industry experts expect significant growth over the next decade. Most groups estimate a 14-15% CAGR in industry revenue over this time.
According to Allergan CEO, Brent Saunders, two groups are seen as significant growth opportunities: millenials and men.
Millennials:
- Increased Spending: A survey known as the MedSpa 2023 Outlook Survey by Weave discovered that over a quarter of millennials (27%) still prioritize spending on medical spa cosmetic procedures1.
- Interest and Engagement: The same survey reported that more than half of millennials (53%) have received or are interested in receiving MedSpa cosmetic treatments2.
- Investment in Non-invasive Procedures: As millennials age, they are investing in non-invasive procedures, which has been a significant driver of growth in the medical spa industry. Since 2013, the US medical spa industry has grown in revenue by more than 20% each year, with the industry's growth potentially reaching an additional 8% by 2020, propelled by millennials seeking non-invasive treatments34.
Men:
- Young Men Engagement: In a 2022 report by the American Med Spa Association, it was noted that men aged 18 – 34 demonstrated the largest increase in engagement with medspas, rising from 18% of all male patients in the 2019 report to 24%. The increase in the number of young men entering the industry has been acknowledged as a noticeable trend by providers5.
The data suggests a growing inclination towards medspa treatments among both millennials and men, driven by the appeal of non-invasive procedures and the willingness to invest in aesthetic enhancements.
Technology in Medical Spas
The growing popularity of medspas has spurred significant advancements in practice management and other medspa technologies. As medspas become increasingly mainstream, the demand for efficient, customer-friendly services has risen, leading to the adoption of sophisticated practice management systems and other software products.
Today's medical spas typically have a product suite that includes:
- Appointment Scheduling Software
- Medical Spa Management Software
- Electronic Health Records (EHR) and Electronic Medical Records (EMR)
- Marketing and Customer Relationship Management (CRM)
- Billing and Inventory Management
- Telemedicine
Product Consolidation
The medspa sector is experiencing a trend of software consolidation, similar to other verticals. Software companies are expanding their product offerings to become all-in-one solution providers, aiming to streamline operations and eliminate the need for multiple vendors. These companies offer a range of services, including appointment scheduling, billing, inventory management, and telehealth services, simplifying practice management and allowing medspa practitioners to focus on patient care.
HintMD is an excellent example of this trend as they have developed from a basic financing platform to a comprehensive aesthetic subscription platform. Their product suite includes dynamic treatment planning, intelligent pricing, and advanced analytics, all aimed at improving the patient experience and helping practices manage their operations more effectively. This has positioned HintMD as a one-stop solution for medspas.
Last year, PatientFi followed suit by introducing PRIVI, a subscription service that complements its core offering of patient financing. This move is in line with the industry's broader trend towards more integrated software solutions.
Other companies such as Nextech and Zenoti are also making strides in this direction. Nextech offers medspa-specific software with features such as swift charting, centralized check-in/out hub, and an integrated point-of-sale system, simplifying various operational aspects of medspa management. On the other hand, Zenoti provides a cloud-based solution that includes appointment scheduling, automated marketing, and employee management, demonstrating a holistic approach to tackling a myriad of operational needs in the medspa environment.
These developments highlight the ongoing trend of software companies in the medspa industry becoming comprehensive solutions providers, paving the way for more streamlined and efficient practice management.
Final Thoughts
The medspa industry is on a robust growth trajectory, fueled by technological advancements and changing demographic interests. Millennials and men are becoming important consumer groups, driving a shift in the industry's marketing and service approach.
Innovative software solutions are revolutionizing practice management, making it more efficient and patient-centric. Companies like HintMD, PatientFi, Nextech, and Zenoti are breaking new ground with their integrated solutions. They are not only enhancing patient financing options but are also simplifying operational tasks, streamlining service delivery, and ultimately improving the overall patient experience.
As this trend continues, the future of the medspa industry looks bright and holds promising opportunities for practices that adopt these technological innovations.
