There was a time when plastic and reconstructive surgeries were performed only on serious burn cases or accidental injuries. Now cosmetic surgery is de rigueur in many social circles. Over the last few years, the masses have been picking up this trend from eminent Hollywood celebrities.
From millennials to baby boomers, plenty are interested in such procedures for aesthetic reasons. Data from the 2016 Cosmetic Surgery National Data Bank Statistics report published by The American Society for Aesthetic Plastic Surgery (ASAPS) substantiates this fact, stating that for the first time since 2016, Americans have spent more than $15 billion on surgical and nonsurgical procedures marking a $1.5 billion rise in annual spending.
This data might encourage venturesome investors to consider industries which have been gaining considerable ground of late.
Factors Driving Plastic & Reconstructive Surgery Market
The trend to look presentable on social media platforms is on the rise. Per an article by Jim Frame published by INDEPENDENT, “Cosmetic procedures are now the surgery of 'want, not need.'”
Moreover, a rapidly aging population has been contributing to the fast-growing plastic and reconstructive surgery market. Per data provided by ASAPS in a Cosmetic Surgery National Data Bank Statistics report, the combined surgical and nonsurgical procedures for men and women above the age of 65 have risen by 89% between 2012 and 2016.
The wide gamut of surgical and nonsurgical procedures makes the plastic and reconstructive surgery market a lucrative space. Ranging from skin grafting, modifying an existing feature for cosmetic reasons, to getting a congenital defect corrected, all these procedures fall under the umbrella of this niche space.
Notably, surgical and nonsurgical solutions for men are also rapidly gaining momentum. Per data provided by ASAPS in Cosmetic Surgery National Data Bank Statistics report, male breast reduction procedures alone (for the treatment of Gynecomastia) had risen by 181%, as measured in 2016, since ASAPS initiated surveying for cosmetic surgical data 20 years back.
The report also stated that breast augmentation and lifting surgeries dominated the chart of five most popular surgeries for women in 2016. Many analysts believe that increasing awareness and rising expenditure in healthcare with technological advancements are likely to drive demand for these surgeries. This is further substantiated by data provided by Global Market Insights, which projects that the global breast implants market is set to reach a worth of roughly $1,482.1 million, at a CAGR of 4.1% in the 2016-2024 period.
If that is not enough, a report by Technavio published in Business Wire, says that the global plastic surgery products market is expected to value around $15 billion, seeing a CAGR of 9% between 2016 and 2020.
3 Stocks to Bet On
Here we highlight three companies that are striving to cash in on the bountiful opportunities in the plastic and reconstructive surgeries market.
Hologic, Inc. (HOLX - Free Report) : Headquartered in Marlborough, MA, Hologic carries a long-term earnings growth rate for three-to-five years of 10.8%. It made its entry into the aesthetics market with the acquisition of marketer of aesthetic treatment systems, Cynosure, Inc. for an equity value of approximately $1.65 billion. Cynosure develops, manufactures and markets aesthetic treatment systems. The systems aid plastic surgeons, dermatologists and other medical practitioners to perform non-invasive and minimally invasive procedures.
Post the buyout, Cynosure has become a wholly owned subsidiary of Hologic and has resulted in the addition of a new segment to Hologic’s diversified business — Medical Aesthetics.
Hologic announced the receipt of expanded FDA 510(k) clearance for Cynosure's clinically proven and non-invasive body contouring product, SculpSure, in September. The advanced body contouring laser treatment now stands approved for treating a double chin. In June, SculpSure got clearance to treat problems like fat on the back as well as inner and outer thighs. Moreover, the SculpSure treatment has FDA approval for the treatment of abdomen and love handles.
Hologic, Inc. Price
Integra LifeSciences Holdings Corp. (IART - Free Report) : Headquartered in Plainsboro, NJ, Integra has a long-term earnings growth rate for three-to-five years of 10.8%. The company operates in the high-potential plastic and reconstructive surgery market through the Orthopedics and Tissue Technologies segment, which contributed 43.3% to the total revenues in the last reported quarter.
Solidifying its footprint in this space, Integra acquired Derma Sciences, Inc., a tissue regeneration company last February. Derma Sciences is currently focusing on advanced wound and burn care that provides products for the treatment of chronic and deep wounds, resulting from diabetes and poor vascular functioning.
Continuing with the slew of developments, Integra recently announced a few product launches in this space — the collagen matrices Revize/Revize-X for plastic and reconstructive surgery; thecollagen matrix SurgiMend PRS Meshed, featuring a 2: 1 meshing pattern; and SurgiMend PRS Meshed for pre- and sub-pectoral breast reconstruction in Europe.
Integra LifeSciences Holdings Corporation Price
Stryker Corp. (SYK - Free Report) : Headquartered in Kalamazoo, MI, Stryker has a long-term earnings growth rate for three-to-five years of 10%. It is one of the largest medical device companies in the global orthopedic market and has successfully expanded its product portfolio over time, which helps the company cater to evolving demands of customers.
The company’s product portfolio cushions it against any significant sales shortfall during economic downturns. Furthermore, the platforms of bone cement, sports-medicine, bones substitute, soft tissue repair, trauma and extremities, endoscopy and more strengthen the company’s market position.
Stryker’s MEDPOR Plastic Surgery portfolio provides surgeons a comprehensive and expanding range of options for reconstruction and augmentation. Also, the company provides digital planning solutions for maxillofacial surgical procedures through VSP Reconstruction that is functioning in partnership with 3D Systems/Medical Modeling.
Stryker Corporation Price
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