17 Jul 2020
Posted in Consumer
China’s skincare sector to reach US$42.7bn in 2024, forecasts GlobalData
The skincare sector in China is projected to grow from CNY212.6bn (US$31.2bn) in 2019 to CNY286.7bn (US$42.7bn) in 2024, with a compound annual growth rate (CAGR) of 6.2%, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘China Skincare – Market Assessment and Forecasts to 2024’, reveals that the sector is significantly driven by the growth in the ‘hand care’ category, which is forecast to register the fastest CAGR of 6.7% during 2019–2024. The category is closely followed by ‘facial care’ category, which is expected to record a CAGR of 6.2% during the next five years.
Anchal Bisht, Consumer Analyst at GlobalData, says: “The combined effect of the growing inclination towards looking good, effects of pollution and the need to address individual skin problems is prodding consumers to use a variety of skincare products, fueling growth in the sector. Manufacturers’ efforts to lure in more consumers, both young and old with targeted products, is lending further traction.”
The report further reveals the ‘facial care’ was the largest category, followed by ‘hand care’ category in value terms in 2019. The hand care category is expected to gain maximum market share in value terms during 2019–2024.
Hypermarkets & supermarkets was the leading distribution channel in the China’s skincare sector, with a value share of 19.2% in 2019, closely followed by department stores and direct sellers channel.
L’Oréal S.A., Mary Kay Inc., and Shiseido Company, Limited are the leading players in the China skincare sector. Mary Kay, Artistry and L’Oréal are the most popular brands in China in 2019. Private labels are growing at a higher CAGR than brands, as they are recognized as value for money products by consumers in the Chinese skincare market.
Ms Bisht concludes: “On the back of rising disposable incomes and growing awareness, the Chinese skincare sector is poised to record sizable growth in the coming years. There has been an upsurge in the demand for high quality facial creams, body moisturizers, anti-aging and hand care creams, a trend expected to remain pertinent in years to come and fuel the skincare sector growth.”