Related Report: The Cosmetic Laser and Energy-Based Markets in
China 2008
April 2008
REPORT STRUCTURE 7
SECTION 1 - SUMMARY 10
TABLE 1 Cosmetic laser/energy market in spas/medspas USA 10
Market covered in report 10
Market size (value and volume) 10
Numbers of companies identified 10
A new blockbuster market threat to traditional beauty? 11
Laser technology diversifies consumer profiles 11
Laser technology drives major shift in beauty services market 11
Negatives/uncertainties 11
Market-specific USA 12
SECTION 2 - COSMETIC LASER/ENERGY – A NEW CATEGORY IN BEAUTY (SERVICES AND SETTINGS) 13
Beginnings of a new category 13
TABLE 2 Cosmetic laser/energy the leading procedures 13
Regulations inadequate to market actualities 14
SECTION 3 - COSMETIC LASER/ENERGY MARKET SIZE ESTIMATES 16
Estimating size of fragmented market - problems 16
TABLE 3 Estimated market size selected segments (value/volume) 16
The “medical” and “medspa” channels 16
The beauty salon/spa channel 17
TABLE 4 Estimates of service providers (people and settings) 17
Physicians 17
Spas, medspas, and laser clinics 17
Medspas - a new setting 18
TABLE 5 Beauty services industry (%) units by type 2007 18
How many professionally run salons/spas? 18
TABLE 6 Beauty services industry workers 2007 19
Salon or spa? 20
SECTION 4 - COSMETIC LASER/ENERGY BUSINESS IN SPA SAMPLE 21
TABLE 7 Breakout (%) of revenues cosmetic laser/energy 21
Cosmetic laser/energy revenues in spas/medspas 21
What’s counted in the cosmetic laser/energy category 21
SECTION 5 - COSMETIC LASER/ENERGY PROCEDURES BY CATEGORY 23
TABLE 8 Cosmetic laser/energy revenues by procedure category 23
TABLE 9 Plastic surgeons’ laser business 24
TABLE 10 Cosmetic laser/energy revenues (% by category) in two sample providers 24
LASER HAIR REMOVAL BUSINESS 25
TABLE 11 Cosmetic laser hair removal estimates, US market 25
Hair removal the largest laser market 25
TABLE 12 Cosmetic laser/energy hair removal business in the spa sample 26
How new lasers grow hair removal and the wider beauty market 26
Technological developments and new consumer segments 26
People of color and consumers with “problem” hair 27
Men 27
Body parts depilated by gender 27
Hair removal as a “gateway service” 27
Lasers and fashion increase body parts depilated 28
Laser HR - a lifetime investment? 28
Lifetime for consumers is once off for spas 28
TABLE 13 Laser hair removal market - positives and negatives 29
LASER SKIN CARE BUSINESS IN SAMPLE 29
TABLE 14 Laser skin care US market 29
TABLE 15 Cosmetic laser/energy skin care in sample 30
Cosmetic laser/energy skin care procedures 31
Drivers of laser skin care 31
New technology 31
Less invasive 32
Multiple platforms good news for all 32
Technology allows total package 32
From youth to old age 33
Will ongoing maintenance create lifetime consumers? 33
OTHER LASER BUSINESS 33
Vein procedures menus 33
TABLE 16 Laser vein-related market in the USA 34
SECTION 6 - CONSUMER PROFILES 35
TABLE 17 Consumers’ profiles – traditional beauty and laser beauty 35
Men and lasers 36
First time beauty consumers – more than half of total? 36
TABLE 18 Typical duration of programs for top procedures 36
From minutes to months 36
Consumers – treatment completers 36
Pre-pay for expensive / multiple sessions programs 37
Don’t create a pool of unhappy consumers 37
Word-of-mouth decisive 37
Droppers out 37
Non-responders 38
Early-responders 38
Side effects / adverse outcomes 38
Media coverage critical for consumer awareness 38
Content of marketing a challenge 38
TABLE 19 Barriers for consumer use of cosmetic laser procedures 39
SECTION 7 - COSMETIC LASER/ENERGY PROCEDURES - SPENDING, PRICES, PAYMENT SYSTEMS 40
TABLE 20 Cost of laser procedures (starting prices) 40
TABLE 21 Forecasts for price variations in laser work 41
Prices rising – stagnant - falling 41
Industry -specific consumer resistance to price increases 41
TABLE 22 Payments (% clients) pay by credit plan 42
Lasers push beauty spending to new levels 42
Lifetime cost justifies high spend 42
TABLE 23 A sample sum skin care spending over a decade 43
Is this spending sustainable? 43
Why prices vary 43
Pricing systems – traditional and new 44
Prices should be transparent, not a bad surprise 44
Achieving informed consent where ongoing maintenance 44
SECTION 8 - COMPANIES (LASER SERVICES AND MANUFACTURERS) 45
TABLE 24 Cosmetic laser/energy market number of spas/medspas 45
TABLE 25 “The top 5 providers of cosmetic laser services” 46
TABLE 26 Spas/clinics identified (20 names) 47
TABLE 27 Leaders in the cosmetic laser market 48
TABLE 28 Cosmetic laser/energy number of manufacturers 48
TABLE 29 Manufacturers – named as among “the top 3” 49
TABLE 30 Laser manufacturers used by sample 49
TABLE 31 Manufacturers/brands identified (13 manufacturer names) 50
SECTION 9 - MARKET FUTURE 51
TABLE 32 Annual growth rates - variations forecast 51
TABLE 33 Cosmetic laser/energy categories - forecasts 52
TABLE 34 Cosmetic laser/energy services market - positives 52
Demographics and appearance 53
A technology driven market 53
Lasers are in line with consumer lifestyles 53
DIFM and wider behavior 53
The appeal of the easy 54
A marked shift in consumer expectations 54
One dissenter – trade down time for results 54
TABLE 35 Cosmetic laser/energy market negatives, uncertainties 55
Economy 55
Challenges facing industry and individual businesses 55
More competitive 55
Equipment costs 56
Upgrades can erode investments/leases 56
Need for quality systems 56
The appropriate business concept (medical or cosmetic?) 57
Lasers – a new cosmetic technology to decimate alternative beauty solutions? 58
TABLE 36 Cosmetic lasers and alternative solutions (selected) 58
SECTION 10 - COMMONALITIES OF SUCCESSFUL BEAUTY SALONS/SPAS 59
A quality experience 59
Departmentalize service staff and space 59
Express / lunch time services 59
Locations 60
Gift certificates as an income source 60
Client retention and referral programs 60
Client retention rates industry average (beauty) 61
The beauty salon / spa ritual 61
A quality appointment / reception experience 61
The heart of the beauty ritual – the consultation 61
The consultation – three steps 62
Setting realistic expectations 62
SECTION 11 - COSMETIC LASER/ENERGY EQUIPMENT - PURCHASING CRITERIA 63
Clinics/spa equipment purchasing criteria 63
Support is a purchasing criterion 63
Costs - initial and lifetime 63
Costs - initial versus lifetime 63
Protected territory 64
Criteria Industry Awards 64
Reference point - service programs to beauty salons/spas 64
Key elements of suppliers’ service programs 65
Elite programs 65
Professional-only products / devices? 65
SECTION 12 - BUSINESS DATA BENCHMARKS AND SAMPLE MENUS 66
TABLE 37 Business benchmark data – medspa examples 66
Franchise’s profitability formula 66
TABLE 38 Sample menu cosmetic laser and other services 67
TABLE 39 Sample menus - full service clinic and laser clinic 67
SECTION 13 - CHANGING OVERSIGHT / REGULATORY FRAMES 69
Medical versus the cosmetic – regulatory differences 69
FDA approval for cosmetic uses what had been medical 69
Market actuality (example - “one clinic, many licenses”) 69
Industry guidelines fill regulatory gap(s) 70
Laser training certificate and laser credentialing 70
Remit of bodies charged with proposing new regulatory frames 70
The different perspectives protecting a monopoly or client safety? 71
Medspas – definition(s) in circulation 71
Medical spas - four types 72
COSMETIC LASERS - A THUMBNAIL SKETCH HISTORY AND TYPES 72
Laser, IPL, and RF 72
TABLE 40 Four classes of lasers (FDA) 73
TABLE 41 Laser treatments, technology, and skills (HABIA) 74
SECTION 14 – EXPERTS SAMPLE 75
Data sources 75
Experts sample represents 75
TABLE 42 The sample - distribution by number of clinics operated 76
SECTION 15 - NOTES ON TERMINOLOGY AND GLOSSARY 77
Note on terminology (laser) 77
Symbols used in tables 77
GSP formats 77
INDEX OF COMPANIES, BRANDS, SELECTED PUBLICATIONS, AND ORGANIZATIONS (REGULATORY, TRADE, PROFESSIONAL) 78
APPENDIX - TECHNOLOGY CATCHES UP WITH PEOPLE’S EXPECTATIONS CREATING A BLOCKBUSTER MARKET 80
Diagonal Reports tracks the wellness and beauty market worldwide. It researches developments in cosmetic medicine, fitness, wellness and beauty clinic, spa and salon markets worldwide.
Related reports
The US Medspa Market
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Title: Cosmetic Laser Procedure Market US 2008
Summary of Cosmetic Laser Procedures Market
Published: April 2008
Medicalised Beauty Report Series
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The Cosmetic Laser and Energy-Based Markets in the USA 2008
(Hair removal, skin renewal, acne, tattoos, veins, lesions, scars, aesthetic, cosmedical, medicalized beauty, medical spa, elective, laser, RF, IPL.)April 2008
REPORT STRUCTURE 7
SECTION 1 - SUMMARY 10
TABLE 1 Cosmetic laser/energy market in spas/medspas USA 10
Market covered in report 10
Market size (value and volume) 10
Numbers of companies identified 10
A new blockbuster market threat to traditional beauty? 11
Laser technology diversifies consumer profiles 11
Laser technology drives major shift in beauty services market 11
Negatives/uncertainties 11
Market-specific USA 12
SECTION 2 - COSMETIC LASER/ENERGY – A NEW CATEGORY IN BEAUTY (SERVICES AND SETTINGS) 13
Beginnings of a new category 13
TABLE 2 Cosmetic laser/energy the leading procedures 13
Regulations inadequate to market actualities 14
SECTION 3 - COSMETIC LASER/ENERGY MARKET SIZE ESTIMATES 16
Estimating size of fragmented market - problems 16
TABLE 3 Estimated market size selected segments (value/volume) 16
The “medical” and “medspa” channels 16
The beauty salon/spa channel 17
TABLE 4 Estimates of service providers (people and settings) 17
Physicians 17
Spas, medspas, and laser clinics 17
Medspas - a new setting 18
TABLE 5 Beauty services industry (%) units by type 2007 18
How many professionally run salons/spas? 18
TABLE 6 Beauty services industry workers 2007 19
Salon or spa? 20
SECTION 4 - COSMETIC LASER/ENERGY BUSINESS IN SPA SAMPLE 21
TABLE 7 Breakout (%) of revenues cosmetic laser/energy 21
Cosmetic laser/energy revenues in spas/medspas 21
What’s counted in the cosmetic laser/energy category 21
SECTION 5 - COSMETIC LASER/ENERGY PROCEDURES BY CATEGORY 23
TABLE 8 Cosmetic laser/energy revenues by procedure category 23
TABLE 9 Plastic surgeons’ laser business 24
TABLE 10 Cosmetic laser/energy revenues (% by category) in two sample providers 24
LASER HAIR REMOVAL BUSINESS 25
TABLE 11 Cosmetic laser hair removal estimates, US market 25
Hair removal the largest laser market 25
TABLE 12 Cosmetic laser/energy hair removal business in the spa sample 26
How new lasers grow hair removal and the wider beauty market 26
Technological developments and new consumer segments 26
People of color and consumers with “problem” hair 27
Men 27
Body parts depilated by gender 27
Hair removal as a “gateway service” 27
Lasers and fashion increase body parts depilated 28
Laser HR - a lifetime investment? 28
Lifetime for consumers is once off for spas 28
TABLE 13 Laser hair removal market - positives and negatives 29
LASER SKIN CARE BUSINESS IN SAMPLE 29
TABLE 14 Laser skin care US market 29
TABLE 15 Cosmetic laser/energy skin care in sample 30
Cosmetic laser/energy skin care procedures 31
Drivers of laser skin care 31
New technology 31
Less invasive 32
Multiple platforms good news for all 32
Technology allows total package 32
From youth to old age 33
Will ongoing maintenance create lifetime consumers? 33
OTHER LASER BUSINESS 33
Vein procedures menus 33
TABLE 16 Laser vein-related market in the USA 34
SECTION 6 - CONSUMER PROFILES 35
TABLE 17 Consumers’ profiles – traditional beauty and laser beauty 35
Men and lasers 36
First time beauty consumers – more than half of total? 36
TABLE 18 Typical duration of programs for top procedures 36
From minutes to months 36
Consumers – treatment completers 36
Pre-pay for expensive / multiple sessions programs 37
Don’t create a pool of unhappy consumers 37
Word-of-mouth decisive 37
Droppers out 37
Non-responders 38
Early-responders 38
Side effects / adverse outcomes 38
Media coverage critical for consumer awareness 38
Content of marketing a challenge 38
TABLE 19 Barriers for consumer use of cosmetic laser procedures 39
SECTION 7 - COSMETIC LASER/ENERGY PROCEDURES - SPENDING, PRICES, PAYMENT SYSTEMS 40
TABLE 20 Cost of laser procedures (starting prices) 40
TABLE 21 Forecasts for price variations in laser work 41
Prices rising – stagnant - falling 41
Industry -specific consumer resistance to price increases 41
TABLE 22 Payments (% clients) pay by credit plan 42
Lasers push beauty spending to new levels 42
Lifetime cost justifies high spend 42
TABLE 23 A sample sum skin care spending over a decade 43
Is this spending sustainable? 43
Why prices vary 43
Pricing systems – traditional and new 44
Prices should be transparent, not a bad surprise 44
Achieving informed consent where ongoing maintenance 44
SECTION 8 - COMPANIES (LASER SERVICES AND MANUFACTURERS) 45
TABLE 24 Cosmetic laser/energy market number of spas/medspas 45
TABLE 25 “The top 5 providers of cosmetic laser services” 46
TABLE 26 Spas/clinics identified (20 names) 47
TABLE 27 Leaders in the cosmetic laser market 48
TABLE 28 Cosmetic laser/energy number of manufacturers 48
TABLE 29 Manufacturers – named as among “the top 3” 49
TABLE 30 Laser manufacturers used by sample 49
TABLE 31 Manufacturers/brands identified (13 manufacturer names) 50
SECTION 9 - MARKET FUTURE 51
TABLE 32 Annual growth rates - variations forecast 51
TABLE 33 Cosmetic laser/energy categories - forecasts 52
TABLE 34 Cosmetic laser/energy services market - positives 52
Demographics and appearance 53
A technology driven market 53
Lasers are in line with consumer lifestyles 53
DIFM and wider behavior 53
The appeal of the easy 54
A marked shift in consumer expectations 54
One dissenter – trade down time for results 54
TABLE 35 Cosmetic laser/energy market negatives, uncertainties 55
Economy 55
Challenges facing industry and individual businesses 55
More competitive 55
Equipment costs 56
Upgrades can erode investments/leases 56
Need for quality systems 56
The appropriate business concept (medical or cosmetic?) 57
Lasers – a new cosmetic technology to decimate alternative beauty solutions? 58
TABLE 36 Cosmetic lasers and alternative solutions (selected) 58
SECTION 10 - COMMONALITIES OF SUCCESSFUL BEAUTY SALONS/SPAS 59
A quality experience 59
Departmentalize service staff and space 59
Express / lunch time services 59
Locations 60
Gift certificates as an income source 60
Client retention and referral programs 60
Client retention rates industry average (beauty) 61
The beauty salon / spa ritual 61
A quality appointment / reception experience 61
The heart of the beauty ritual – the consultation 61
The consultation – three steps 62
Setting realistic expectations 62
SECTION 11 - COSMETIC LASER/ENERGY EQUIPMENT - PURCHASING CRITERIA 63
Clinics/spa equipment purchasing criteria 63
Support is a purchasing criterion 63
Costs - initial and lifetime 63
Costs - initial versus lifetime 63
Protected territory 64
Criteria Industry Awards 64
Reference point - service programs to beauty salons/spas 64
Key elements of suppliers’ service programs 65
Elite programs 65
Professional-only products / devices? 65
SECTION 12 - BUSINESS DATA BENCHMARKS AND SAMPLE MENUS 66
TABLE 37 Business benchmark data – medspa examples 66
Franchise’s profitability formula 66
TABLE 38 Sample menu cosmetic laser and other services 67
TABLE 39 Sample menus - full service clinic and laser clinic 67
SECTION 13 - CHANGING OVERSIGHT / REGULATORY FRAMES 69
Medical versus the cosmetic – regulatory differences 69
FDA approval for cosmetic uses what had been medical 69
Market actuality (example - “one clinic, many licenses”) 69
Industry guidelines fill regulatory gap(s) 70
Laser training certificate and laser credentialing 70
Remit of bodies charged with proposing new regulatory frames 70
The different perspectives protecting a monopoly or client safety? 71
Medspas – definition(s) in circulation 71
Medical spas - four types 72
COSMETIC LASERS - A THUMBNAIL SKETCH HISTORY AND TYPES 72
Laser, IPL, and RF 72
TABLE 40 Four classes of lasers (FDA) 73
TABLE 41 Laser treatments, technology, and skills (HABIA) 74
SECTION 14 – EXPERTS SAMPLE 75
Data sources 75
Experts sample represents 75
TABLE 42 The sample - distribution by number of clinics operated 76
SECTION 15 - NOTES ON TERMINOLOGY AND GLOSSARY 77
Note on terminology (laser) 77
Symbols used in tables 77
GSP formats 77
INDEX OF COMPANIES, BRANDS, SELECTED PUBLICATIONS, AND ORGANIZATIONS (REGULATORY, TRADE, PROFESSIONAL) 78
APPENDIX - TECHNOLOGY CATCHES UP WITH PEOPLE’S EXPECTATIONS CREATING A BLOCKBUSTER MARKET 80
Diagonal Reports tracks the wellness and beauty market worldwide. It researches developments in cosmetic medicine, fitness, wellness and beauty clinic, spa and salon markets worldwide.
Related reports
The US Medspa Market
The US Dental Spa Market
The Weight Therapy Treatment Market 2008
Report
Title: Cosmetic Laser Procedure Market US 2008
Summary of Cosmetic Laser Procedures Market
Published: April 2008
Medicalised Beauty Report Series
US Beauty Market Reports
Buy This Report