By Meg Flippin Benzinga

DETROIT, MICHIGAN - October 7, 2025 (NEWMEDIAWIRE) - The population in Japan may be aging, but that doesn’t mean there aren’t tens of millions of people in their 30s and 40s who are dropping cash on everything from aesthetic treatments to hair removal. And it’s not only females. A growing number of males in Japan are also spending money in the pursuit of beauty and wellness.

It’s a growing market in Japan and an opportunity for SBC Medical Group Holdings Inc. (NASDAQ: SBC) to solidify its position as a leader in Japan’s cosmetic surgery clinic market. SBC Medical operates 259 cosmetic surgery clinics across the country, making it the largest beauty clinic chain in Japan. The company estimates it has approximately 25% market share in Japan and is growing. The clinics provide aesthetic treatments, hair removal services and non-surgical and surgical cosmetic procedures. It served over 6 million people last year alone.

High Quality, Non-Surgical Procedures In Demand

Japan’s cosmetic surgery market is growing as people seek out aesthetic treatments including hair removal and non-surgical procedures that offer subtle, natural-looking enhancements and require little in the way of downtime.

How big is the market? Today, it's around $3.5 billion, and it’s projected to reach $9.5 billion by 2033, growing at a CAGR of 12.11%.

Japan is known for its high-quality service, and SBC has a hard-earned reputation for providing quality care in a clean environment. The company holds over 200 patents in the field of cosmetics and its franchised clinics employ more than 1,000 licensed doctors who perform these advanced regenerative therapies and treatments throughout Japan.

Males, Middle-Aged Women: A Growing Target Market

While SBC Medical prides itself on being among the leaders in the cosmetic surgery clinic market in Japan, it still has an opportunity to gain a lot more market share by going after different segments of the Japanese population.

SBC Medical has been catering to women in their late teens to mid-30s for some time, but it only has a 26% market share in the category, which means there’s more room to grow. For women between the ages of 30 and 40, SBC Medical said nearly 25 million could use its services, but it only has an 8% penetration. This demographic is very proactive when it comes to anti-aging and dermatology services. As for males, the company’s market share stands at 9% of the more than 40 million it estimates it can target. All told, that’s a sizable untapped growth opportunity for SBC Medical.

To reach these new segments and keep its high repeat rate among customers, which was more than 70% last year, SBC Medical has been in transformation mode, overhauling its pricing structure and adapting to a changing marketplace. To address competition and keep its leadership position, the company is pursuing two strategies: expanding the market by making aesthetic medicine more accessible and appealing, and differentiating itself from the competition by offering advanced treatments and better pricing.

It is also leaning into accelerating its shift from general surgery to specialized dermatology in response to that rise in demand for non-surgical treatments. That helps improve profitability through high-efficiency, low-cost operations.

To reach the male target market, which ranges from the teens to the 60s, SBC Medical is leveraging its hair transplants and laser treatments. The company has 11 of its own clinics and 22 through the Gorilla Clinic brand. SBC says it’s the only provider of its scale in Japan to introduce Folix, a popular hair growth laser treatment in the U.S. That, it says, gives it an edge over its rivals. SBC plans to maintain a mult-brand strategy, which gives it the ability to respond to the different needs of its growing customer base.

“By customizing services across multiple brands, the company expects to segment the market and garner more market share overall,” wrote Zacks Research in a recent research report. “In April 2025, SBC launched a new brand for the SBC NEO Skin Clinic, designed to make aesthetic treatment more accessible and affordable. Management has indicated that the concept is performing well thus far.”

Buying For Growth

SBC is also making buys and launching brands through its recent acquisition of both Aesthetic Healthcare Holdings Pte, a network of medical and aesthetic clinics, and JUN CLINIC, which offers customized treatments, which are also in demand. Furthermore, there’s its new brand Hada no Aozora Clinic, which will open in Tokyo in October. It will integrate insurance-covered dermatology with private-pay aesthetic treatments.

The company has firepower to make more acquisitions, with $152 million in cash and cash equivalents as of June, and that’s exactly what Lighthouse Capital believes SBC Medical is going to do.

“We expect SBC to deploy additional capital toward acquiring smaller med spas and aesthetic clinic groups in Japan and internationally,” wrote Lighthouse Capital in recent research. “We project the company will remain cash flow positive, with an improving net cash position and a robust balance sheet to support long-term growth.”

From dermatology to hair transplants, Japanese women and men of all ages are clamoring for cosmetic services, and SBC Medical is standing by to deliver them. With a big untapped market and cash in the bank, SBC Medical is laser-focused on continued growth and expansion.

Featured image from Shutterstock

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