2025 MedSpa Market Outlook

In 2025, the Medical Spa (MedSpa) industry is not just growing; it’s booming, fueled by a surge in consumer demand for minimally invasive aesthetic procedures. This growth is driven by several factors, including advancements in aesthetic technology, a growing emphasis on self-care and wellness, and a rising interest from both investors and strategic buyers. Over the past few years, the MedSpa industry has transformed significantly, with new technologies and treatment options emerging, making aesthetic procedures more accessible and effective.

As the market continues to evolve, MedSpa owners are presented with numerous opportunities to expand their businesses, optimize operations, and form strategic partnerships that can enhance their business value. This document provides an in-depth analysis of the current state of the MedSpa market, explores key trends and growth opportunities, and offers insights into how MedSpa owners can capitalize on these trends to achieve sustained success.

Market Growth & Trends

1.  Market Size and Growth

• Current Valuation:  In 2023, the U.S. MedSpa Market was valued at approximately $7.36 billion, according to Grand View Research. This figure grew to $8.4 billion in 2024, reflecting a robust growth trend. Similarly, the 2023 Global MedSpa Market was valued at approximately $18.6 billion and increased to over $21 billion in 2024.
• Projected Growth: The U.S. market is projected to expand at a compound annual growth rate (CAGR) of 13.9% from 2024 to 2030, reaching an estimated $17.6 billion by 2030. The Global MedSpa Market is expected to grow at a CAGR of 15.13% during the same period, reaching an estimated $49.4 billion by 2030.

• Number of Facilities:  As of 2022, there were 8,899 registered MedSpas in the U.S., according to the American MedSpa Association (AmSpa).  That number grew to 10,488 in 2023, an increase of 15.2%.  While 2024 totals are not yet available, at that same growth rate of 15.2%, 2024 will see total MedSpas grow to 12,368.
• Average Annual Revenue:  A single location MedSpa generated an average annual revenue of approximately $1.98 million in 2022, up from $1.72 million in 2021 and $1.53 million in 2018.
• Monthly Revenue:  This translates to an average monthly revenue of about $121,632 per MedSpa location in 2022.
• Popular Treatments: The most commonly provided treatments in MedSpa practices include facial treatments, body shaping and contouring, hair removal, scar revision, and tattoo removal.
• Client Demographics:  Women constitute approximately 85.3% of MedSpa clients, while men make up the remaining 14.7%. The male demographic is steadily growing, with an increasing interest in treatments such as hair removal, skin rejuvenation, and body contouring. The majority of MedSpa clients are aged between their mid-30s to 50s, focusing on anti-aging and body contouring treatments. However, younger clients in their 20s are increasingly seeking preventive treatments such as Botox and skin care regimens, while older clients above 50 are looking for more intensive anti-aging solutions. Clients in their 30s and 40s are particularly interested in treatments that offer quick results with minimal downtime, such as injectables and laser therapies.

Meanwhile, clients in their 50s and beyond are more likely to invest in comprehensive treatment plans that address multiple signs of aging. MedSpa clients typically have higher disposable incomes, allowing them to invest in premium treatments and regular maintenance. Many clients opt for membership or subscription models to ensure consistent care and access to the latest treatments. MedSpa clients are predominantly located in urban and suburban areas, where access to advanced aesthetic treatments is more readily available. However, there is a growing trend of MedSpas expanding into rural areas to meet the increasing demand for aesthetic services.

2.  Expanding Consumer Demand

The demand for non-surgical aesthetic procedures remains at an all-time high, with treatments such as Botox, dermal fillers, laser therapies, and body contouring continuing to dominate the market. Consumers are increasingly prioritizing self-care and wellness, fueling consistent revenue growth across the MedSpa sector.

3.  Advances in Aesthetic Technology

The industry is benefiting from continuous innovation in laser treatments, radiofrequency skin tightening, and regenerative therapies like PRP and exosome treatments. AI-powered skin analysis and personalized treatment plans are enhancing client experiences and driving patient retention.  Top procedures for 2025 continues to be Non-Surgical Facelifts, Injectables and Fillers, Laser Treatments and Body Contouring, although PRP Treatments and Cryo are emerging.

4. Rise of Membership & Subscription Models

To ensure long-term client retention and revenue predictability, many MedSpas are shifting toward membership and subscription-based pricing models. This approach enhances customer loyalty and smooths revenue fluctuations.  This model also provides access to all buyer absolute favorite revenue type – RECURRING.

5. Increasing Consolidation & Investment Activity

Private equity firms, healthcare groups, and large aesthetic platforms are actively acquiring MedSpas, recognizing their strong margins and scalable business models. Many MedSpa owners are exploring partnerships that allow them to monetize equity while continuing to lead their business.

Opportunities for MedSpa Owners

• Access to Capital for Expansion:  Owners looking to scale their MedSpa through additional locations, new service offerings, or upgraded equipment are finding more financing and partnership options than ever before. These options include traditional bank loans, private equity investments, and strategic partnerships with larger healthcare organizations. Covenant Health Advisors can help you identify the right partner to support your continued growth.
• Strategic Partnerships:  Many owners are choosing to partner with investors or healthcare platforms that provide resources to streamline operations, improve marketing, and drive business growth. For instance, partnering with a healthcare platform can offer access to advanced technology, comprehensive training programs, and a broader client base. By taking the heaviness of the back office off your plate, you can focus your energy on expanding your business. Let Covenant Health Advisors show you how.

• Monetizing Equity While Staying Involved:  A growing number of MedSpa owners are choosing to sell a portion of their business while maintaining operational control, allowing them to benefit from both immediate liquidity and long-term upside. This approach provides owners with a significant financial return upfront, while also enabling them to participate in the future growth of a larger organization. By receiving a 7-figure check now and rolling equity into a larger entity, owners can enjoy a compounded rate of return based on a much larger EBITDA than going it alone.

Conclusion

In summary, the MedSpa industry in 2025 is experiencing robust growth driven by strong consumer demand for minimally invasive aesthetic procedures, advancements in technology, and increasing investor interest. MedSpa owners have significant opportunities to expand their businesses, optimize operations, and form strategic partnerships to enhance their business value. For MedSpa owners considering expansion, partnership, or a partial or full exit, 2025 is an opportune time to explore strategic options.

At Covenant Health Advisors, we specialize in helping MedSpa owners evaluate market opportunities, secure partnerships, and maximize business value. By partnering with us, you can leverage our expertise to position your MedSpa for sustained growth and success. If you’re interested in learning more about how to position your MedSpa for growth or sale, we’d love to connect. Contact us today to explore your options.

Contact Us

We’d love to hear from you!  If you have any questions or would like to learn more about how we can help your MedSpa business, please don’t hesitate to contact us.

Covenant Health Advisors

Chris Calcagno

Founder and CEO

[email protected]

O – 214-234-8812  #701