As a woman in her 20s with an active Instagram account, I’ve witnessed firsthand the rapid growth and destigmatization of medical spa treatments. What was once considered taboo is now a regular topic of conversation among my friends and acquaintances. From social media influencers promoting lip blushing and fillers to discussing Groupon deals for Baby Botox, these treatments have become an integral part of our everyday conversations.
The Underlying Medical Spa Industry: A $30 Billion Business by 2030
According to a report by Grand View Research, the medical spa industry is projected to reach a staggering $30 billion in value by 2030. The American Med Spa Association reports that the number of clinics offering these treatments grew an impressive 62% from 2018 to 2022. This growth is not limited to just individual clinics; investors are taking notice and circling like vultures seeking out prime candidates for roll-up strategies.
Private Equity Firms and Startups: Investing in Medical Spas
Most medical spas, a staggering 81% according to American Med Spa Association data, are independent clinics or small businesses. Private equity firms are starting to take notice of this industry, and startups are building tech solutions for these small businesses with venture capitalists seemingly eager to back them. This influx of investment is not surprising given the industry’s growth potential.
RepeatMD: A Vertical SaaS Company Revolutionizing Medical Spas
When I heard that RepeatMD, a vertical SaaS company for the medical spa industry, raised a substantial $50 million Series A, I wasn’t surprised. However, I did have one question: how are these investors thinking about the risks associated with a sector so reliant on changing consumer trends? The success of these businesses is entirely based on the strength of underlying beauty fads and largely whatever unrealistic beauty standards consumers are currently trying to achieve.
The Risks Associated with Medical Spas
Think back to when buccal fat removal was all the rage. Social media and beauty magazines were flooded with stories about this procedure, but now, just a year later, it’s barely mentioned anymore. Do people still get tooth gems? While these trends may come and go, investors are bullish that consumers will always be seeking out the next one.
Investor Confidence in Medical Spas
According to an interview with Rebecca Szkutak, senior reporter at TechCrunch, investors are confident that consumers will continue to seek out medical spa treatments despite fluctuations in beauty trends. "Having self-confidence and feeling good about yourself is so core to people," says Cole, a representative from RepeatMD. "It’s a category of spend that hasn’t seen a lot of drop-off."
Conclusion
The medical spa industry is experiencing an unprecedented growth spurt, with investors taking notice and circling like vultures seeking out prime candidates for roll-up strategies. While there are risks associated with this sector, investors remain bullish on the industry’s potential. As consumers continue to seek out the next big thing in beauty, one thing is clear: medical spas are here to stay.
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