The Rise of Medical Spas and the Attractiveness of RepeatMD
As I scroll through my Instagram feed, I’m constantly bombarded with advertisements for medical spa treatments. From lip blushing to fillers, these procedures have become a staple in many people’s beauty routines. But what’s behind this explosive growth? And why are investors taking notice?
The Growing Popularity of Medical Spas
According to a report by Grand View Research, the medical spa industry is projected to reach $30 billion by 2030. This rapid growth has not gone unnoticed, with the American Med Spa Association reporting that the number of clinics offering these treatments grew by 62% from 2018 to 2022.
As I speak to my friends and acquaintances in their 20s, it’s clear that medical spas have become a normalized part of our beauty routines. Whether we’re getting Botox or lip fillers, these procedures are no longer stigmatized as they once were. In fact, many young people are openly discussing their experiences with medical spa treatments on social media.
The Rise of Independent Clinics and Small Businesses
Despite the growth in popularity, most medical spas – 81% according to American Med Spa Association data – are independent clinics or small businesses. This has led to a surge in private equity firms circling these companies, seeking out opportunities for roll-up strategies.
Startups are also building tech solutions for these small businesses, with venture capitalists seemingly eager to back them. So when I saw that RepeatMD, a vertical SaaS company for the medical spa industry, raised $50 million in Series A funding, I wasn’t surprised.
The Risks of an Industry Based on Fads
While investors may be bullish about the future of the medical spa industry, there are concerns 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.
In theory, if promoting natural beauty became en vogue, much of the medical spa industry could become irrelevant. I mean, think about it – when was the last time you heard about buccal fat removal? That flooded social media and beauty magazines in December 2022, but now it’s largely forgotten.
Investor Confidence
Despite these concerns, investors are bullish that consumers will always be seeking out the next big thing. "Having self-confidence and feeling good about yourself is so core to people, it is a category of spend that hasn’t seen a lot of drop-off," says one investor.
Beauty trends may come and go, but investors believe that consumers will always be attracted to new and innovative treatments. And with RepeatMD’s success in the medical spa industry, it’s clear that investors are willing to take a chance on companies that can capitalize on this trend.
Topics
- beauty
- Biotech & Health
- Deal Dive
- EC Market Analysis
- EC News Analysis
- Startups
- Venture capital
Rebecca Szkutak, Senior Reporter, Venture
Becca is a senior writer at TechCrunch that covers venture capital trends and startups. She previously covered the same beat for Forbes and the Venture Capital Journal.
Most Popular
- Duolingo sees 216% spike in US users learning Chinese amid TikTok ban and move to Red Note
- Tesla to split $100M award for electric truck charging corridor in Illinois
- Bluesky is getting its own photo-sharing app, Flashes
- UnitedHealth hid its Change Healthcare data breach notice for months
Newsletters
- TechCrunch Daily News: Every weekday and Sunday, you can get the best of TechCrunch’s coverage.
- TechCrunch AI: TechCrunch’s AI experts cover the latest news in the fast-moving field.
- Startups Weekly: Startups are the core of TechCrunch, so get our best coverage delivered weekly.
Subscribe
By submitting your email, you agree to our Terms and Privacy Notice.
