Everyone has the love of beauty. No matter how the economy develops, the rigid need of human beings to love beauty has never changed, but the manifestation of the economy of beauty in different eras is constantly changing. According to the definition, medical cosmetology refers to the use of drugs, surgery, medical equipment, and other traumatic or irreversible medical techniques to repair and reshape the human appearance and various parts of the human body.
The Global Medical Beauty Market Is Growing Steadily
The global medical cosmetology market has entered a stage of steady growth. According to statistics, the total number of medical cosmetology treatment items in the world in 2017 was 23.39 million, a slight decrease from 23.47 million in 2016. According to the relevant data, the global medical cosmetology service market in 2017 was US$125.8 billion, and the compound growth rate is expected to be 7.2% from 2018 to 2022, and it will further increase to US$178.2 billion by 2022, equivalent to 1.2 trillion yuan.
China's Medical cosmetology Industry Has Great Development Potential
The domestic medical cosmetology industry started late but developed rapidly. In 2017, China surpassed Brazil to become the world's second-largest medical cosmetology market. In 2019, China's medical cosmetology market reached 250 billion, with a compound growth rate of 30% in the past five years.
However, it is worth noting that the current penetration rate of medical cosmetology in China is still at a low level in the world. In 2019, the penetration rate of medical cosmetology in mainland China will be between 2.3% and 5%. In 2018, China received 14.8 medical aesthetic treatments per 1,000 people, which is lower than the 86.2, 51.9, 46.2, and 27.1 times of the same period in South Korea, the United States, Brazil, and Japan. At the same time, the per capita penetration rate of Chinese medical cosmetology projects still has much room for improvement.
Secondly, China is about to become the largest country in medical aesthetics, and the market size is worth looking forward to. In 2019, there were 13.672 million medical aesthetic users in China. It is predicted that the number of medical aesthetic users will reach 25.483 million in 2023. It is expected to surpass the United States in 2021 and become the largest market for medical aesthetics.
Consumption Upgrade Is the Underlying Driving Force of Industry Development
The increase in residents' income level will effectively support the increase in consumer unit prices. On the one hand, the increase in income level has driven the growth of consumption of higher unit price products; on the other hand, consumption upgrades are accompanied by changes in consumption concepts, resulting in higher frequency of single customer consumption and a richer consumer category.
Young People Have Become the Main Driving Force
Data shows that in 2019, the average age of medical aesthetics consumers in China was 24.45 years old, and the post-90s generation accounted for more than 60%. Both industries have a higher proportion of the elderly. The older women theoretically experience more skin problems, more prominent needs, and higher spending power. After the consumption habits are developed, they will only be upgraded and not downgraded. For example, in the U.S. medical cosmetology market, consumers aged 40-54 accounted for 44% in 2019, and consumers over 55 accounted for 22.62%; while the elderly in China are mainly subject to consumption concepts, but as young people grow, they will provide adequate Industry growth momentum.
The Accumulation of Production R&D Technology Supports the Industry to Go Further
The medical cosmetology market has gradually developed from a single market dominated by orthopedic treatment to a market that encompasses medical treatment and cosmetic appearance. Although the industry makes money, there is a big gap in the value distribution of each link in the industry chain. The upstream of China's medical cosmetology industry chain mainly includes medical cosmetology raw material suppliers and medical cosmetology equipment providers; the midstream includes formal institutions and informal institutions, among which formal institutions mainly refer to plastic surgery departments of public hospitals, large chain medical cosmetology groups, and small and medium-sized private enterprises; the downstream of the medical cosmetology industry is the end consumer.
The Net Interest Rate of Upstream Companies Is Higher Than That of Downstream Companies
Throughout the entire medical aesthetics industry chain, the midstream and downstream organizations that directly contact end consumers have a low-value share in the industry chain, and they have not produced companies with large market capitalizations, while the upstream production of raw materials has obtained most of the industry profits. Because the upstream industry are relatively concentrated, leading companies have high gross profit margins and are characteristic of capital and technology-intensive industries. They require high technical reserves, R&D support, and process accumulation for companies, and the industry has features such as patent protection and review and approval. The overall threshold and barriers are relatively high, which can continuously create value for shareholders and thus obtain most of the profits of the industrial chain. Only companies that have a certain barrier to entry and can form barriers to competition over time will take away the biggest piece of cake in the industry.
As people's income levels increase and consumption upgrades are driven, the coverage of medical aesthetics has become wider and wider. The main consumers of medical aesthetics have become younger, and the acceptance level has changed from "shame to mention" to "willing to share." The penetration rate and consumption power have a high degree of certainty, and the light medical aesthetics sector has gradually entered the era of mass consumption. At the same time, the advancement of science and technology has provided an important guarantee for the vitality of the medical aesthetics industry. Only companies in the industry with key raw materials and core technologies can continue to benefit from the industry and obtain more high-quality resources and voice in market competition.
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