Disposable income contracted during the recession and cut into industry revenue.
Los Angeles, CA (PRWEB) November 14, 2013
Dermatologists have been in high demand over the past five years. During the five years to 2013, industry revenue has grown at an average annual rate of 3.2% to an estimated $10.6 billion. According to the Skin Cancer Foundation, physicians diagnose more than 3.5 million cases of skin cancer each year; in particular, melanoma has become increasingly common. The rates of melanoma skin cancer have been rising over the past 30 years. Heightened awareness of the risk of skin cancer has fueled growth in skin cancer screenings and treatments provided by the industry. Furthermore, according to IBISWorld Industry Analyst Anna Son, “the Dermatologists industry has increasingly expanded into cosmetic dermatology, with more dermatologists offering anti-aging procedures such as dermabrasion, laser treatments and Botox.” These treatments have proven to be a high-growth sector for the industry.
However, the Dermatologists industry was unable to avoid the effects of the recession, with revenue contracting 5.0% in 2009. As the unemployment rate rose, more Americans lost health insurance coverage, resulting in fewer patient visits to dermatologists. Cosmetic dermatology procedures in particular experienced the largest contraction, due to their dependence on per capita disposable income levels. However, during the past four years, revenue growth has resumed its pace thanks to a modest rise in per capita disposable income, with projected revenue gains of 5.5% in 2013. Over the past five years, the number of dermatologist offices has grown an average of 2.1% per year, totaling an estimated 7,961 establishments.
Over the next five years, declining unemployment and the implementation of healthcare reform will yield greater insurance coverage for Americans, increasing demand for dermatologist offices. “The baby boomer generation will especially generate a large portion of demand, particularly for skin cancer screenings and anti-aging procedures,” says Son. While the number of dermatologists' offices is projected to rise, there will continue to be a shortage of dermatologists, particularly throughout the country's rural areas. Job prospects are expected to be particularly good in the central and northern regions of the United States.
For more information, visit IBISWorld’s Dermatologists in the US industry report page.
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IBISWorld industry Report Key Topics
The Dermatologists industry includes health practitioners that specialize in diagnosing and treating diseases of the skin, scalp, hair and nails. Dermatologists may also offer cosmetic services like Botox. Plastic surgeons, however, are not included in this industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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