Market Overview

The aesthetic salon market size for FY2024 is projected to decrease to 304,300 million yen, representing 98.3% of the previous fiscal year (based on the sales of aesthetic salon operators). This forecast marks the fifth consecutive year of contraction.
Viewing by segment, aesthetic treatment for women (as a total of facial, body care/slimming, hair removal, and others) dropped to 191,800 million yen (97.4% YoY), aesthetic treatment for men attained 15,500 million yen (100.6% YoY), and sales of merchandise and other services yielded 97,000 million yen (99.9% YoY). A significant factor in this downturn is the slump in women’s treatments (facial, body care, and slimming).
In 2024, the hair removal segment, which was previously a key driver of market growth, faced a wave of bankruptcies among regional chains and mid-sized operators. Reports of sudden salon closures and unpaid refunds for unfulfilled services have surfaced repeatedly.

Noteworthy Topics

Ban on HIFU Treatment at Aesthetic Salons

In June 2024, The Ministry of Health, Labour and Welfare notified the extensive ban on performing HIFU (High Intensity Focused Ultrasound) treatments by individuals without a medical license.

HIFU (High Intensity Focused Ultrasound) is a cosmetic procedure that involves concentrating ultrasound waves to a single point to heat targeted areas of hypodermis or Superficial Musculoaponeurotic System (SMAS), improving wrinkles and sagging without affecting the skin's surface. It was known as a treatment for facial lift using ultrasound, gaining popularity in the aesthetic salon market as an effective means for those seeking face lift and sharper contouring without invasive procedure.

However, as there has been an increase in the number of complications reported following the procedure, aesthetic salons were recommended not to promote or conduct HIFU treatments. Consumer Affairs Agency warned consumers of the risk of HIFU treatment.
Consequently, aesthetic salons were held accountable. Major beauty portal sites were prohibited by the authority to post the name of salons or menus indicating treatments relating to HIFU.

The tightening of regulations around HIFU treatments is understandable from a consumer protection standpoint. However, it has driven consumers toward cosmetic medical clinics over aesthetic salons.

Future Outlook

The domestic aesthetic salons market is forecasted to attain 304,600 million yen in FY2025, holding steady at 100.1% of the previous fiscal year’s size. Despite a slow recovery of women’s hair removal market, the market is being buoyed by growing demand in men’s aesthetic treatments.

2024 saw a series of hair removal salon bankruptcies. Many salon operators defaulted on advertising payments, leading to a noticeable decline in TV commercials and outdoor signage. While financially stable players continue to invest in online advertising with celebrity endorsements, the overall sentiment around aesthetic salons is still weighed down by the fallout.
Nevertheless, there is significant untapped potential in the men’s aesthetic market. Interest among male consumers in beauty continues to rise, offering a promising growth opportunity. Although the industry still faces reputational challenges, this emerging segment provides a path for expansion.

Research Outline