While cosmetic surgery & medspa procedure platforms have rarely achieved scale to date, they are a growing area of investor focus, supported by an aging population and positive consumer trends in aesthetics catalyzed through the COVID-19 pandemic. Herein, Marwood delineates the opportunities for growth and consolidation of the cosmetic surgery & medspa market, even in a challenging economic environment. A snapshot of this large and growing space provides color on both consumer and provider dynamics and the potential countercyclical advantages of the sector. In addition, state regulatory considerations, critical to M&A strategy in the space, are introduced.

I. A Sector With Growing Patient Demand
The US cosmetic surgery and medspa procedures market is estimated at ~$20B in the US, forecast to grow at ~10% YoY over the next 3–5 years, as estimated by Marwood. An improving acceptance by society of not only certain procedures, but sizeable out of pocket costs are key contributors to growing procedural volume. Cosmetic surgery is broadly defined as a process of reconstruction or repairing parts of the body by the transfer of tissue, either in the treatment of injury or for cosmetic reasons. Leading procedures include liposuction, body contouring, facelift, and breast augmentation. The market for these key procedures alone recently been estimated by Marwood at ~$12B, forecast to grow at over 10% YoY over the next 3–5 years.

Medspas seek to combine some medical procedures normally performed in a doctor’s office with the experience of a day spa. Leading procedures include chemical peels, Botox and filler injections, micro abrasion, photo-facial pulsed light (IPL), skin tightening, body contouring/cellulite reduction, and laser skin resurfacing among others (Figure 1).