Increased social acceptability of and interest in tattoos has driven demand for them, which ultimately increased the pool of potential customers who may regret their initial decision and want their tattoos removed by this industry’s practitioners. Although the recession caused drops in disposable income that flowed onto the industry as reduced demand, heightened unemployment as a result of the recession actually supported the Tattoo Removal Practitioners industry because many job seekers sought to cover up tattoos in order to obtain employment. Enticed by fast growth and low barriers to entry, entrepreneurs and companies flocked to the industry. For these reasons, industry research firm IBISWorld has added a report on the Tattoo Removal Practitioners industry to its growing industry report collection.
The Tattoo Removal Practitioner industry grew quickly over the past five years, with revenue expanding at an average annual rate of 20.9% to $65.6 million in 2012. Increased social acceptability of and interest in tattoos has driven demand for them, which ultimately increased the pool of potential customers who may regret their initial decision and want their tattoos removed. Further pushing growth has been the recession, says IBISWorld industry analyst Justin Molavi, with “heightened unemployment increasing demand from job seekers who wanted to cover up tattoos to improve their job prospects.” At the same time, the recession did cause drops in disposable income, which mitigated some growth because it limited consumers’ ability to pay for tattoo removal.
Innovation has been a key focus in the Tattoo Removal Practitioner industry, with increasing use of Q-switching laser technology to remove tattoos, which allows less patient evasiveness and scarring. According to Molavi, “This move has not only resulted in higher demand for tattoo removal since consumers generally prefer this method, but also supported demand for tattoos because people now see how relatively easy it is to remove them with this method (in comparison to other methods used by the industry).” Industry players purchased this technology at accelerating rates to meet demand from customers who demanded tattoo removal.
The industry will continue to grow over the next five years, albeit at a slower rate. Although demand will still be high, given the ease of removal with laser technology, the boost in demand that resulted from high unemployment will fade as the US economy gains steam and unemployment declines. The absence of the high growth experienced during the past five years will result in fewer new entrants during the next five years. Although existing companies, such as MEDermis Laser Clinic, LaserAway and the Dr. Tattoff franchise, only comprise a small share of industry revenue, they will continue to increase market share through geographical expansion. IBISWorld estimates that most of the industry’s revenue comes from the Southeast, West and Mid-Atlantic regions due to their higher population densities and the presence of major metropolitan areas in these regions. For more information visit IBISWorld’s Tattoo Removal Practitioners in the US industry page.
Source: PRWEB on January 28, 2012 at http://www.prweb.com/releases/2012/1/prweb9143941.htm