Growing urban population in China has significantly shifted consumer inclination towards cosmetics with anti-pollution characteristics. As a result, the cosmetics and toiletries industry is expected to grow from C¥494.6bn (US$72.6bn) in 2019 to C¥658bn (US$97.9bn) in 2024, recording a compounded annual growth rate (CAGR) of 5.9%, says GlobalData, a leading data and analytics company.

GlobalData’s report, ‘China Cosmetics & Toiletries – Market Assessment and Forecasts to 2024’, reveals that ‘make-up’ sector is expected to register the fastest value growth at a CAGR of 8.8%, during 2019–2024. It will be followed by male toiletries and skincare with CAGRs 7.0% and 6.2%, respectively. Feminine hygiene led the sector in volume terms, recording volume sales of 4,100.4 million units in 2019.

Anchal Bisht, Consumer Analyst at GlobalData, says: “Consumers in China are seeking products, which offer desired benefits at a reasonable price. In addition, growing urban population in the country has significantly shifted consumer inclination towards cosmetics with anti-pollution characteristics, which is likely to drive the Chinese cosmetics and toiletries industry growth.”

Hypermarkets and supermarkets are the leading distribution channels in the Chinese cosmetics and toiletries industry and accounted a majority share of 29.5% in 2019. It was followed by e-retailers and department stores, which held share of 16.8% and 14.8%, respectively, in the same year.

The value share of China in the global cosmetics and toiletries industry is expected to increase from 15.1% in 2019 to 16.5% in 2024 and the country’s share at regional level is expected to rise from 40.7% in 2019 to 41.5% in 2024.

Procter & Gamble, L`Oreal S.A. and Unilever were the leading market players in the Chinese cosmetics and toiletries industry in 2019. While Mary Kay, Head & Shoulders, and L`Oréal were the top brands in the country. Private labels accounted for a value share of 3.8% in the overall Chinese cosmetics and toiletries sector and registered highest penetration in the personal hygiene sector with 8.7% value share in 2019.

Ms Bisht concludes: “Rise in influence of social media among the Chinese consumers has significantly enhanced their curiosity to try new products and has elevated brand awareness. Several beauty brands are engaging in influencer marketing and campaigns to improve product popularity, which is likely to drive the industry growth in China.”