Why The Medical Aesthetics Industry Is Attractive to Investors and Entrepreneurs

All one must do is look to social media to understand the opportunity that the medical aesthetics industry offers potential investors and entrepreneurs. Having been developed through the merger of medical clinics and traditional spas that provided soothing and relaxing spa treatments, medical aesthetics has quickly become attractive to anyone looking to retain a youthful look and feeling.

Since its evolution, the industry has been shaped by constantly changing consumer demands, social acceptance of services offered, increased awareness about available anti-aging and wellness solutions, and technological advancements. The segment has continued to be very attractive to consumers because of the instant results that can be experienced, as well as the lower cost and shorter recovery or down time experienced when compared to more invasive procedures.

These factors, as well as increased social media exposure, improved effectiveness of treatments, increased wellness options, and an escalating desire among the masses to look more aesthetically appealing and feel younger are expected to drive the industry into the foreseeable the future.

The Global Market

The non-invasive medical aesthetics segment dominated the medical aesthetics industry in 2021 and has continued that trend throughout 2022. This segment of the industry is also expected to expand at the fastest compound annual growth rate over the next five years.

According to Grand View Research’s 2021 publication Market Research and Trend Analysis From 2022 to 2028, which takes into consideration the impact of COVID-19 and the well documented “Zoom Effect”, the global non-invasive aesthetic treatment market size was valued at $53.8 billion in 2021 and is projected to expand at a compound annual growth rate of 15.2% from 2022 to 2030.

The U.S. Market

According to the International Society of Aesthetic Plastic Surgery, the U.S. was ranked 1st in terms of non-surgical procedures performed at a global level. Of these, injectables such as botulinum toxin (i.e., Botox) and hyaluronic acid based dermal fillers were among the most popular procedures performed.

As such, minimally invasive procedures are rapidly replacing invasive surgeries. For instance, according to the American Society of Plastic Surgeons, in the U.S. nearly 18 million minimally invasive and surgical cosmetic procedures were performed in 2020, out of which nearly 16 million procedures were minimally invasive.

Psychological Impact of Aesthetic Treatments

According to the April 2021 study Impact of Minimally Invasive Aesthetic Procedures on the Psychological and Social Dimensions of Health published in the Plastic and Reconstructive Surgery Journal of the American Society of Plastic Surgeons, those who received non-invasive aesthetic treatments with injectables associated significant improvements in patient-reported psychological and social functioning and reductions in appearance-related distress. This emphasizes the value of these treatments as a means of improving overall health, which has important mental and social dimensions in addition to the obvious physical components.

The Millenial Factor

Millennials have emerged as one of the leading consumer demographics seeking minimally invasive aesthetic procedures. Worldwide, millennials are more likely to consider preventative treatments compared to any other age-group. With the destigmatization of aesthetic procedures, millennials have incorporated such procedures into their “self-care toolbox”. The three most popular minimally invasive procedures in this demographic include neurotoxins, dermal fillers, and microdermabrasion treatments. Even with relatively less money to spend, millennials have invested in self-care and personal wellness, reportedly outspending baby boomers 2:1.

Another reason millennials have become avid consumers is their desire to seek aesthetic procedures as a way to improve the overall quality of their life. As such, the number of minimally invasive procedures has increased tremendously in this demographic. As previously stated, for millennials, these procedures are advantageous given their capacity to provide notable results at a fraction of the cost of more invasive procedures.

Why do millennials matter so much to the future growth of the aesthetics industry? They are moving into an age range where aesthetic services are most demanded. They are interested in preventative options. They will soon have significant discretionary income. They value self-care. They are more open to non-invasive service offerings than previous generations. They possess significant influence over friends, family, and their social network. Their lifetime value is significantly greater than other demographics.

The Future

Given the social acceptance of non-invasive aesthetic procedures and the growing desire to retain a youthful look and feeling, the medical aesthetics industry is poised for exponential growth and set to track at a compound annual growth rate that may, according to some estimates, exceed 15%. Couple these facts with the reality that the industry is highly fragmented, disjointed, and driven by "mom and pop" type entrepreneurs, it offers well organized and well-funded investors an opportunity to capture significant market share in a rapidly expanding industry through de novo development, M&A, or both.

Randy Stepp is a Principal with Renaissance Leadership Group. RLG is a full-service business development company whose purpose is to help business owners realize their dreams of independence and freedom.

Visit Renaissance Leadership Group at www.renaissanceleadershipgroup.com to learn more about business development.