Just a few weeks ago, it seemed like Botox and other injectable fillers were on top of the world and on top of the market, but a sluggish US economy and rapidly declining consumer confidence are beginning to take their toll on the minimally invasive cosmetics market.
The Botox boom originally happened in the late nineties and its use has steadily increased each year - in 1997, only around 65,157 Botox treatments were given, compared to 2007 when 2.8 million injections were received. Botox and other minimally invasive procedures procured a huge market at the turn of this century, with a market value of about $4.3 billion in 2000 doubled in 2006 to $8.7 billion, according to a report published by Piper Jaffray.
Although growth has been gaged at a steady 15% annually for the wrinkle-treatment, Botox, business analysts foresee that growth dropping to about 7% in the current market. Shares of three large injectables manufacturers, BioForm Medical, Allergan (the makers of Botox) and Medicis, all fell anywhere from 20 to 33% in trading this year. These companies all responded that the drop was due to "rapidly declining consumer confidence."
Despite growing popularity, it appears the cosmetic procedures market is not impervious.
No comments:
Post a Comment