Fueled by a still-booming economy and an accompanying wave of consumerism, the Chinese market for professional skin care products posted a robust 15% gain in 2006. This rate outpaced the U.S. and European markets and is expected to continue to do so over the next five years, according to a recently published study by Kline & Company.

According to the National Statistics Bureau of the People’s Republic of China, disposable per capita income has surged by an average of 11.3% over the last five years. This has helped to drive personal care expenditures up by 13.4% each year, Kline estimates. This trend is a major force in the market for professional skin care products—sold primarily through beauty institutes, spas, and salons or dermatologist and plastic surgery clinics—with Chinese consumers focusing more of their attention—and their income—on enhancing their appearance.
    
Kline’s study forecasts annual growth of nearly 15% in China through 2011, compared to just over 9% for the U.S. market. This will push sales in the Chinese market past the $1.4 billion mark, and the U.S. market, within this timeframe.

The lion’s share of skin care product sales through professional channels in China belongs to the beauty institutes, with about a 70% share. However, Kline’s study suggests that the spa market is poised for a surge, which would give the foreign brands a chance at raising their market share.

“We’re expecting sales through spas in China to grow by more than 17% a year over the next five years,” says Carrie Mellage, industry manager for the Consumer Products practice of Kline’s research division. “The emerging middle class is beginning to discover the day spa, which offers some of the same amenities of the full spa experience but at a much more affordable price.”