How Profitable is a Medical Spa? (2024 Stats)

With a staggering market size of $23.2 billion in 2023, the U.S. medical spa sector has been growing fast over the past few years. But what does this mean for individual spa owners, investors, or those considering entering the market?

How much does it cost to open a medical spa? And how profitable is it really?

In this article, we’ll dissect the financial anatomy of the medical spa industry, from its dominant revenue streams to the underlying costs. By the end, you’ll have a clear picture of the potential returns and what drives them. Let’s dive in!

US Medical Spa Market Overview

As per IBIS, the medical spa industry in the US represented revenue of $23.2 billion in 2023 and is expected to grow to $25.3 billion by 2028. Rising per capita disposable income and consumer confidence are expected to lead to continued spending on discretionary spa services. Over the next five years, more spas are anticipated to market their services to the growing male market.

Massage and bodywork treatments represent the largest share ($12.6 billion), followed by skin care treatments ($3.0 billion), salon services ($2.5 billion), and retail sales ($2.2 billion).

Yet, with over 20,000 chiropractic businesses across the country, the competition is also fierce.

What is the average revenue of a medical spa?

Now, using data from more than 60 franchised medical spas, a medical spa earns $269,000 in gross revenue per year on average.

The number of spa visits in the US grew to 173 million in 2021 (up from 124 million in 2020), according to the International Spa Association (ISPA). A notable rise in revenue per spa visit, up from $97.5 in 2020 to $104.5 in 2021, played a crucial role in elevating industry revenue.

Yet, not all medical spas have the same yearly revenue. Logically, some will earn more than others because of many factors like location, popularity, per capita disposable income, number of spa visits, consumer spending, etc.

How much does it cost to open a medical spa?

On average, it costs between $137,000 and $338,000 to open your own medical spa.

This includes various costs such as leasehold improvements/buildout, lease deposit, furniture, fixtures and equipment, computer & office, leasehold improvements, architectural and engineering services, retail and promotional inventory, signage, insurance, permits and licenses, professional fees, etc.

Leasehold Improvements (47%): construction and/or remodeling costs to build or renovate the facilities.
Equipment (15%): office equipment, furniture, fixtures.
Signage (4%)
Lease deposit and payment (2%)
Grand Opening Marketing (5%): grand opening marketing expenses as well as local advertising.
Computer & Office (2%)
Initial Inventory (3%)
Architectural and engineering services (5%)
Retail and promotional inventory (3%)
Working capital (2%): funds needed to operate the business to pay for operating costs (such as insurance, and salaries)
Additional Funds (12%): additional fund for 3-months is required.