The facial treatment industry was valued at $903 million in 2020. The market includes processes performed by licensed estheticians that exfoliate, hydrate, and nourish the skin, as well as at-home facial treatments that can be purchased from a store. Chemical peels, also known as derma-peeling treatments, are an example of an anti-aging facial treatment.
Like the broader skincare products market — which was most recently valued at $134.8 billion — this market was impacted by COVID-19. The pandemic disrupted both supply and demand but had a particularly damaging impact on production. However, the facial treatment industry as a whole is expected to bounce back quickly.
This market is dominated by a mix of large multinational companies and smaller, more regional businesses. US-based companies make up the majority of the market’s leading players. These include Venus Concepts, a global leader in medical aesthetics, as well as Cutera, Lumenis Ltd., Syneron Medical, STRATA Skin Sciences, Solta Medical International, and Sciton.
The impact of COVID-19 on the market can be seen in the 2020 earnings of these companies. For example, Venus Concepts saw its total revenue drop from $110.4 million in 2019 to $78 million in 2020. The biggest drop was in its US business, which decreased 28.9% year-over-year. International business for Venus Concepts dropped 8.3%. Even in Q4, as the company reported improvements, business was down 19% year-over-year to $25.8 million, as opposed to $31.9 million in Q4 2019.
Luckily for Venus Concepts and other companies, the facial treatment market is expected to rebound, according to the report. The industry is projected to expand by a compound annual growth rate (CAGR) of 6.1% through 2027. By the end of the forecast period, the market will have grown from its 2020 value by more than 55%.
Factors Driving Growth
The factors driving this growth include the general economic recovery from the COVID-19 pandemic, driven — at least in part — by a decrease in supply chain disruptions. More specific to the facial treatment industry, certain subsets of the market are expected to see strong growth. Treatments that rely on laser-based devices, for example, are alone slated to reach $337.7 million by 2027, recording a 6.7% CAGR.
While the US market will reach $244.5 million during this period, some of the more notable growth is coming from the Asia-Pacific region. China, the world’s second-largest economy, will grow by a CAGR of 9.3% to reach a projected market size of $290.5 million by 2027. Japan, Canada, and Germany are also expected to see significant growth.
About the Author
Jemima is a journalist who enjoys reporting on business, particularly small business and entrepreneurship.