Emerging Trends: Young Chinese Consumers Drive Growth in Beauty Market

According to a report by the South China Morning Post, young Chinese consumers, including a rising number of men, are increasingly investing in aesthetic medical treatments aimed at enhancing physical, emotional, and social well-being.

Lior Dayan, CEO of Fosun Pharmabacked Sisram Medical and its subsidiary Alma, stated that the trend of consuming energy-based aesthetic treatments, such as lasers, is growing amongst younger generations in mainland China and Hong Kong.

Dayan highlighted that many young consumers are using these treatments as a preventive measure to maintain their collagen levels before any visible aging occurs. In the first half of the year, Sisram Medical reported total revenue of US$165.5 million, with the Asia-Pacific region accounting for approximately 40 percent of that revenue.

This region was the only market to see revenue growth, contrasting with declines in North America, Europe, the Middle East, Africa, and Latin America. Dayan noted that the medical aesthetics market in mainland China had a penetration rate of 4.5 percent in 2022, which is significantly lower than the United States, where the penetration rate is 3.8 times higher.

The report from Dongguan Securities supports this finding. Sisram Medical projects that the demand for aesthetic procedures in Asia will continue to rise, driven by increasing spending power among young consumers.

Dayan emphasized confidence in the ability of Chinese consumers to afford high-end aesthetic services, indicating that Sisram's laser platforms for advanced treatments such as scar removal could cost over US$120,000.

The growing trend of men seeking aesthetic treatments is also notable, reinforcing the evolving nature of consumer behavior in the beauty market. As the CEO pointed out, the aesthetic treatment market in the US is much more established compared to China's growing sector, suggesting significant untapped potential for future growth in the region.