Six Reasons for Optimism on Growth in Medical Aesthetics

Here to stay: An attractive future for medical aesthetics

The medical-aesthetics sector shows strong resilience and room for strategic innovations in business models, product portfolios, and consumer targeting.

By Leigh Jansen, Olivier Leclerc, and Nils Peters

Even at the depths of the COVID-19 pandemic, the future looked bright for the medical-aesthetics industry. As we reported in 2021, the industry was poised to grow by as much as 14 percent annually through 2026. This growth was due to:

• an expanding patient base (thanks in part to increasing awareness and acceptance of aesthetics on social media).
• a proliferation of outlets providing aesthetic services.
• the expansion of indications.
• the adoption of new technologies.
• new service delivery channels rising to meet consumer needs.

In 2022, we conducted a comprehensive survey in the United States to assess consumer sentiment and attitudes toward spending on medical aesthetics. In this article, we draw from the results of that survey and the 2021 article and offer our perspectives on the present state of the medical-aesthetics industry.

A steady climb in Canada and the United States

The market for medical aesthetics in Canada and the United States, which represents an outsize share of the global market, has enjoyed a steady climb since 2019, as illustrated by neuromodulator and dermal filler injectables, as well as energy-based devices for facial rejuvenation and hair removal. The market rebounded in 2021 following the dip in 2020 related to the COVID-19 pandemic.

Notably, neuromodulators (such as injectable Botox) have outperformed dermal fillers (such as hyaluronic acid fillers and biostimulators), likely because of higher price sensitivity, given economic uncertainty and competition from alternatives such as fat-grafting and platelet-rich-plasma treatments. Dermal fillers have also seen some backlash about “filler fatigue,” largely focused on hyaluronic acid fillers, which may have resulted in some of the market softening, as well as a relative shift toward biostimulators.

Six trends that portend market resilience for medical aesthetics

The medical-aesthetics industry has demonstrated remarkable resilience over the past two decades. Our latest research points to six signs that the medical aesthetics industry will remain resilient over the medium to long term.

1. Many consumers are still spending, but also looking for more cost-effective products and treatments

Roughly 60 percent of respondents to the December 2022 McKinsey Aesthetics Consumer Survey expected to spend at least 10 percent less on medical aesthetics should a recession occur. This sentiment appears to have been driven by price sensitivity: nearly half of US consumers (approximately 46 percent) expressed a willingness to switch to lower-price brands or products. Only 7 percent of respondents across the neuromodulator, dermal filler, and facial-rejuvenation segments expected to stop their treatments entirely. 

2. Even amid financial constraints, many consumers remain brand loyal

Despite a general inclination to reduce spending, some respondents intended to stick with their current brands and treatments, as is the case for 52 percent of consumers who were receiving neuromodulator injections (such as Botox and Dysport). Fewer than 20 percent of respondents across all three categories intended to abandon their current products or treatment plans entirely.

3. An increasingly diverse consumer base is now more open to medical aesthetics

Several technological and societal trends play into the resilience of consumer demand for medical aesthetics and the subsequent growth and evolution of market dynamics. Among them is a widespread and dramatic shift regarding aesthetics and self-image. A market report published in 2022 revealed that 81 percent of consumers are more accepting of non-invasive aesthetic treatments than they were five years ago. Consumer segments have also expanded and become more diverse. For example, between the turn of the century and 2018, 29 percent more males underwent cosmetic procedures overall and 72 percent more opted for minimally invasive procedures.

Changes in consumer attitudes and behavior have been mirrored on social media, which has played an increasingly critical role along the full consumer funnel. Social media users are moving from aesthetic treatments to achieve the static “Instagram face” to seeking the more dynamic “TikTok face.” Consumer demand is increasing for procedures that help them look “better in selfies,” maintain previous procedures, and reduce signs of aging.

4. Manufacturers are innovating to meet growing consumer demand

Technological innovation—including patent filings for next-generation dermal fillers and biostimulators—has risen to meet the needs of an increasingly demanding, diverse, and discerning consumer base. Innovations are addressing some consumers’ most challenging pain points, including the maintenance of neuromodulator injections, the treatment of skin laxity, and severe acne.

5. Channel proliferation offers more options to reach a wider array of consumers

Growth in consumer diversity and technological innovations is increasing heterogeneity across channels and provider types. This trend leads to increased complexity and new opportunities for manufacturers and service providers. Surveys also revealed varying levels of consumer loyalty. For example, patients of dermatologists were most likely to stick with their provider, who could leverage these trust-based relationships to broaden customers’ access to a range of aesthetic treatments. Meanwhile, fast-expanding medical spas and aesthetic clinics offer appealing options for shoppers seeking promotions and discounts, but their customers were less loyal than those treated by individual practitioners.

6. The market remains underpenetrated

Our analysis across all medical-aesthetics product segments indicates a high number of “fence sitters”—consumers who say they will try a product or treatment within the next five years, specifically including the next 12 months. Fence sitters are an important indicator of future growth potential in an industry. When we compared fence-sitting data in the 2021 and 2022 surveys, we observed that the phenomenon remained unaffected by significant changes in the macroeconomic environment in the latter year—and in some cases, the trend is even more promising.

For example, in 2021, we found that 15 to 20 percent of respondents intended to use injectables (neuromodulators and dermal fillers) within the next five years, which would double the number of survey respondents who currently used those products at the time of the survey. Our 2022 findings were consistent with those results. 

Opportunities for growth in medical aesthetics

Despite the current uncertain macroeconomic climate, our research indicates that now could be an opportune time to capitalize on current and projected consumer demand for medical aesthetics. Our previous analysis showed that healthcare providers that innovate during a crisis (such as the COVID-19 pandemic) and maintain their focus on growth and rapid adaptability tend to outperform the competition. As consumer bases expand, providers could optimize a mix of products and treatments.

Product innovations such as injectable exosomes can penetrate into new segments and boost market value. Their success will depend on the go-to-market strategy and on consumer adoption patterns.