Medical Services Industries: Botox Treatment, Overview
Between 2000 and 2015, the use of the Botox treatment for wrinkles increased by 759% in the United States, while the number of Botox procedures conducted in the country in 2017 surpassed 7 million.
BASIC INFORMATION ABOUT THE BOTOX TREATMENT INDUSTRY
- The use of Botox is aimed at medically treating certain muscular conditions, and cosmetically to remove wrinkles by temporarily paralyzing muscles. It is derived from a neurotoxin called botulinum toxin.
- Botox is also used to treat excessive sweating, migraines, muscular disorders, and some bladder and bowel disorders.
- In the United States, Botox’s ever-expanding usages have been largely physician-driven. According to Min Dong, a researcher at Harvard Medical School who studies botulinum toxins, practicing doctors have found a variety of other useful applications for Botox beyond those aforementioned.
- Between 2000 and 2015, the use of the toxins for wrinkles increased 759% in the United States, making it more of a cultural phenomenon than a medical treatment.
- According to the American Society of Plastic Surgeons, quoted by Financial Times, 7 million Botox procedures have taken place in the United States.
- Out of all the cosmetic procedures available in the United States, Botox is the most popular one leading by a high margin over other procedures such as chemical peels and laser hair removal.
- Although no comprehensive ranking of top providers exists, we did identify some key players and companies.
- The Refinery Skin Clinic based out of Burnsville, MN has been considered among the top 4% of all Botox clinics in the United States.
- The Skin Center Medical Spa is the largest provider of Botox in Pittsburgh, PA and Columbus, OH, and is ranked as one of the top ten Botox providers in the country.
- In 2015, Derma Health was ranked the second largest provider of Botox in the nation.
- Kristin Gunn is another top provider of Botox, as evidenced by its ranking as a top 1% Black Diamond designation for Botox Injections by Allergen, and as a top 5% Botox provider by RealSelf. A Black Diamond provider is an organization that provides more Botox treatments than 99% the rest of US-based providers.
TWO FRANCHISES FOR BOTOX TREATMENT SERVICES
- The first franchise is Ideal Image MedSpa. Ideal Image MedSpa is a nationally top-ranking medspa that provides non-invasive aesthetic treatments. (Source 6, Quote 1)
- The franchise has over 140 locations in the USA and Canada, and as reported in 2019, the company is offering franchise opportunities to promising candidates.
- Botox and facial fillers are among the services provided by Ideal Image MedSpa.
- The second franchise is Vivid Face. Vivid Face is based out of Aventura, Florida and provides Botox treatment services.
- The company is currently recruiting partners for franchising.
- According to Refinery Skin Clinic, which is reportedly among one of the top 4% Botox clinics in the United States, there are 36,000 Botox clinics in the US.
- Due to the highly fragmented nature of the industry, only limited information exists about new entrants.
- However, the aesthetics bar Alchemy 43 has been mentioned as a potential disruptor to the traditional Botox business because of its experiential focus. It was founded in 2016 and has two locations in the US.
- It has focused on promoting Botox and similar treatments to different market segments and shifting how these kinds of treatments are viewed.
Despite conducting an extensive search, your research team was unable to find information on key players or companies as per any justifiable metric or about new entrants or players. In an attempt to find this information, we used the following strategies.
First, we examined market research reports and industry analysis reports on the Botox treatment industry in the US as these reports often identify the key players in the segment. For market research reports, we looked into sources such as GM Insights, Technavio, Market Research, Markets and Markets, Mordor Intelligence. For industry research reports, we searched PWC, BCG, McKinsey, Deloitte, and others. However, reports available hardly provided any US-specific information as the accessible parts of these paid reports were mostly global or at most specific to North America. Moreover, their assessment of key players was not explained in these previews.
Next, we looked into the annual filings of manufacturers such as Allergen, Ipsen, and Merz who provided products to the service providers or retail Botox providers in the United States. We aimed to find out if they provided any reports of top vendors of their products. Although companies like Allergen recognized top retail users of their products with recognition such as the Black Diamond designation for Botox Injections, they do not publish a comprehensive list for these rankings and therefore the rankings could not be established.
After identifying companies like Alchemy 43, Joli Beauty Bar, or Skin Laundry, we tried to find their company profile information and financial standings from sources such as Nasdaq, Seeking Alpha, Reuters, and others. These sources often provide the market shares of companies, especially if they are leaders. However, mostly being small private companies with undisclosed financials, this data was not available in these sources.
For new entrants and key leaders, we also scanned sites that provide specific business-related information such as market position or disruption created by a new entrant. However, with an approximate number of 36,000 players in the industry, this information was unavailable in sources such as Forbes, WSJ, FT or Business Insider, which mostly provided overall market information.
Given these limitations and challenges in finding the required information from publically available sources, the report was prepared as a Partial Update for the client.