Much has been said in recent years about the increasing disparity between the rich and poor and the shrinking middle class. To be sure, many measures of income inequality do indicate a growing gap between the haves and have-nots, but often these statistics don't paint a complete picture of what is going on in the middle.

If one takes a closer look at the data, there's another side to the story, one that could have a profound effect on the growth of the professional beauty industry for years to come. The number of high-income households in the U.S. is growing, and they are spending more and more money on goods and services. In short, it's the emergence of the high-end consumer.

There are more American households in the $100,000 club than ever before. The proportion of U.S. households with annual incomes of $100,000 or more increased from 10 percent in 1985 to more than 17 percent in 2005 (adjusted for inflation).

A key point is that the growth in higher-income households was the result of middle-class households moving up the income ladder. The share of households with incomes of $75,000 or more rose between 1985 and 2005, while the share of households in each of the lower income categories declined.

Spending Patterns. These higher-income households spend a significant amount of money on the products and services of the professional beauty industry. In 2005, households with annual incomes of $100,000 or more spent an average of $1,098 on personal care products and services*, according to the Bureau of Labor Statistics (BLS). In comparison, the average U.S. household spent $541 on personal care products and services in 2005.

Across all income levels, expenditures on personal care products and services represent slightly more than one percent of the average household's total annual expenditures. However, average household spending on personal care products and services rises significantly as household income grows, as the chart below indicates.

Looking at overall spending in the professional beauty industry, it is clear that higher-income households represent an important and growing market for the industry's products and services. In fact, households with incomes of $100,000 or more are responsible for 30 percent of all spending on personal care products and services, despite representing a smaller 17 percent of all U.S. households.

The products and services of the professional beauty industry have become an essential part of people's daily lives-a trend that will continue well into the future. The high-end consumer is a very important market for the professional beauty industry, and represents a significant source of growth for the industry in the years ahead.

*The BLS definition of personal care products and services includes spending at salons, spas, barber shops and nail salons; purchases of hair, cosmetic, shaving and hygiene products; as well as purchases of personal care appliances for the home.

Bruce Grindy is an economist and government affairs consultant to PBA. He also works closely with the National Restaurant Association. He received a master's degree in economics from the University of North Dakota and a bachelor's degree from Concordia College in Moorhead, Minnesota.