Professional and premium brands continue to be standouts in the U.S. skin care industry. According to Kline’s recently released Medical Dispensed Skin Care: U.S. Mid-Year 2024 Update, brands sold through med spas and physicians have grown by 8% in the first half of 2024 compared to last year. Although this marks a slowdown from 2023’s full-year results, growth remains robust. This trend is also mirrored within prestige skin care but contrasting sharply with the stagnation in the mass retail market.
As consumers seek heightened value in professional and premium skin care, brands in this sector are expanding their reach and accessibility through innovative revenue streams and outlet concepts. In 2023, multi-site chains—ranging from facial spas such as Heyday to wellness spas such as Restore Hyper Wellness and med spa chains such as V/O — emerged as a space to watch, showing impressive growth in both locations and revenue. What’s intriguing is that many of these outlets are not limiting themselves to professional skin care brands. Instead, they are striking a balance between top-tier professional-grade and premium beauty products, catering to a broader audience.
Kline + Company’s Multi-Site Skin Care and Wellness Destinations USA program has been closely tracking this space, and here is the latest:
- Fitness clubs such as Equinox are evolving into all-in-one destinations for fitness, wellness, and spa services, offering edgy, upscale branding with a mix of professional and premium skin care brands, including Babor and Augustinus Bader.
- Nutrition and sleep products have been added to offerings at Silver Mirror Facial Bar, among other outlets, aiming to enhance the inner-outer beauty approach. With growth from three to nine locations, Silver Mirror plans to launch its own skin care products and virtual nutrition programs.
- Facial membership spas continue to be dynamic. Glowbar, recently named one of the fastest-growing private companies on the 2024 Inc. 5000 list, now operates 17 locations and plans to open 10 more by the end of 2024.
- Franchising is becoming a key channel for growth and is expected to be adopted by more facial bars over the next few years. This is an important concept for Face Foundrié, which experienced nearly 300% revenue growth last year, according to our data.
- Wellness destinations, previously a niche segment, are harmonizing experiences across skin care, wellness, health, and healing. Multi-sites we are watching include The Well, Restore Hyper Wellness, and Canyon Ranch.
Our 2024 update on Multi-Site Skin Care and Wellness Destinations will provide a deeper dive into these trends, examining growth sources, top performers, and emerging innovations for 25 outlets, including Skin Habit, Evolve, Equinox Spa, and iCRYO. To request a sample or learn more, connect with an industry expert today.
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