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U.S. Cosmetic Surgery Product Demand to Reach $2.4 Billion in 2010

(press release from Freedonia Group, Inc.)

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CLEVELAND, OH -- October 12, 2006 -- Demand for materials and equipment used in cosmetic surgery procedures is forecast to increase 9.0 percent per year to $2.4 billion. America's obsession with youth is driving growth in cosmetic procedures, which are forecast to grow 9.1 percent per year to 17.5 million in 2010, valued at $17.3 billion. Best opportunities are expected in nonsurgical procedures (such as injections, dermal resurfacing and microdermabrasion) due to consumer preferences for less invasive treatments. However, demand for surgical products will continue to be strong in areas such as implants, where there are no significant alternatives. These and other trends are presented in "Cosmetic Surgery Products," a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Injectables will register the fastest growth, with sales forecast to increase over 15 percent annually through 2010. Growth in this sector boomed with the introduction of BOTOX (Allergan) in the 1990s when it was used for "off label" wrinkle treatments. Further growth was achieved when BOTOX achieved FDA approval for cosmetic indications in 2002 and hyaluronic acid injections became available in December 2003. Two hyaluronic acid tissue filler products were launched on the US market in 2004, one in 2005 and one in 2006. Several others are in development, awaiting FDA approval. Since 2003, hyaluronic acid injections have achieved extraordinary growth, and these products accounted for 61 percent of total tissue filler demand in 2005. Going forward, the aggregate injections segment will benefit from new product introductions, most notably tissue fillers based on synthetic polymers.

In 2005, equipment accounted for 38 percent of total cosmetic surgery product demand. Demand will be driven by gains in the use of microdermabrasion machines and a variety of other new equipment types, as well as continued steady growth in the large laser market. Demand for implants is forecast to rise 7.4 percent per year through 2010. Gains will be driven by an increasing acceptance of plastic surgery, positive clinical evaluations affirming the safety of implants and a growing desire to enhance personal appearance to improve self-esteem. Breast implants will achieve more rapid gains than other implants in part due to the expected return of silicone-gel filled breast implants to the U.S. market.


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