Medspas of America, Inc. (OTC: MEDP) is looking forward to growing in the professional and high-end skin care markets, commonly referred to as the “anti-aging” market. The necessity for these products is being propelled by the “baby boomer” generation which is the force behind the increasing market sector. Business professionals who pay attention to skin care products agree that the demand for these products is going to increase as the baby boomers age.
Jim Cramer, the financial guru from MSNBC, is one person who has taken notice, “Companies with products to help eyesight, skin care and plastic surgery will be big winners.” The company has chosen two entry points into this large and fast growing market: the first one being the $5.4 billion cosmeceutical and nutraceutical industry, and the second being the $9.4 billion cosmetic procedures and medical spa market niche, what industry experts are calling “the fastest growing segment of the medical industry.” Both markets give the company an advantage as they combine the service and supply side of one of the nation’s fastest growing industries.
Over the years, the skin care industry has been evolving significantly as it has shown a viable shift in productivity and sales. The NPI Center has tracked the natural product velocities through scanning data, and has found that the natural skin care market represented 37% of total natural personal care sales in 2002, and grew at a rate of 18% over the previous year. According to the Organic Consumers Association, the natural personal care products market surpassed $2.6 billion in retail sales and has grown by 51.9% from 1998-2004. The U.S. skin care market has grown from $6.87 billion in 2001 to $8.59 billion in 2006, an increase of 25% in five years, according to Euromonitor.
Let us hear your thoughts below: