30 Jun 2020
Posted in Consumer
Chinese make-up market is expected to reach US$8.8bn in 2024, says GlobalData
The make-up market in China is expected to grow from C¥39bn (US$5.7bn) in 2019 to C¥59.5bn (US$8.8bn) by 2024, recording a compound annual growth rate (CAGR) of 8.8%, says GlobalData, a leading data and analytics company.
GlobalData’s report ‘China Make-Up – Market Assessment and Forecasts to 2024’ reveals that the sector growth is primarily driven by face make-up category, which is projected to register the fastest CAGR of 9.8%, in value terms during 2019–2024. The category is closely followed by eye make-up and lip make-up categories, which are forecast to record CAGRs of 8.7% and 7.4%, respectively, during the same period.
Anchal Bisht, Consumer Analyst at GlobalData, says: “Increased focus on looking good and rising awareness of product and beauty trends make China a lucrative market for the make-up sector. As the influence of marketing loses sheen and consumers actively look to make informed purchase decisions, there is a shift towards product formulations. Consumers are increasingly looking for products that are less harmful, without compromising the quality, fueling the demand for natural and organic products.”
The report further reveals that ‘face make-up’ accounted for the highest volume sales of 104.2 million units in 2019. The category also led the sector in value terms with sales of C¥18.2bn (US$2.6bn) in the same year.
The per capita expenditure (PEC) on make-up products in China stood at US$4.1 in 2019 which was comparatively lower than the Asia-Pacific (APAC) and global levels.
L’Oréal S.A., LVMH Moet Hennessy-Louis Vuitton and Amorepacific Corporation are the top three market players in the Chinese make-up sector. Further, private labels, which account for a small share, are growing at a higher CAGR than the brands in the sector.
Department stores accounted for the highest share of 28.3% in the distribution of skincare products in 2019. This was followed by e-retailers and hypermarkets & supermarkets, with market shares of 25.5% and 15.8%, respectively in the same year.
Bisht concludes: “The popularity of luxury make-up brands is on the rise among the Chinese consumers, suggesting significant prospects for these products going forward. Meanwhile, marketing campaigns from manufacturers are successfully luring the consumers in smaller cities, which are expected to emerge as new growth centers and contribute to overall sector growth.”