Positive economic outlook, supported by growing GDP, is driving the cosmetics & toiletries industry in China, which is expected to grow at a compound annual growth rate (CAGR) of 7.5% from CNY495.3bn (US$74.9bn) in 2018 to CNY712.7bn (US$111.0bn) in 2023, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Country Profile: Cosmetics & Toiletries in China’, reveals that skincare products held the largest value share of 47.4%, followed by feminine hygiene products, which accounted for a value share of 16.3% in 2018.
The company predicts the make-up category to grow at the fastest value CAGR of 9.8%, followed by haircare products, which is estimated to record a CAGR of 9.6% during 2018–2023.
Satyajit Biswas, Consumer Analyst at GlobalData, says: “Extensive urbanization along with growing employment is driving consumers to opt for skincare and make-up products in an attempt to look good at their workplace.
Additionally, with consumers growing more aware of the negative effects of artificial ingredients, manufacturers are launching products with free-from claims.”
The report further points out that China has a significant value share in the APAC region, which stood at 45.5% in 2018, and is expected to increase to 48.6% in 2023, mainly due to the projected higher growth of cosmetics & toiletries products compared to most other countries in the region such as Japan and Australia.
The per capita consumption (PCC) of cosmetics & toiletries in China was 11.1 units in 2018, which is forecast to increase to 13.1 units in 2023 – above the APAC level, but below global level.
Procter & Gamble, L`Oreal S.A. and Unilever were the leading market players in China while Mary Kay, L`Oréal, and Artistry were the top brands. Although hypermarkets and supermarkets dominate the sales of cosmetics & toiletries products in the country, private label products, which are majorly sold through this channel, are not able to make a positive perception among consumers – thus accounting for a penetration level of 4.6% by value in 2018, reports GlobalData.
Biswas concludes: “Discerning consumers demanding natural cosmetics & toiletries products with ‘organic’ claims will drive the growth of the industry in the coming years.”