A positive economic outlook and a growing GDP is what is driving China’s growing cosmetics and toiletries industry. According to GlobalData, the country’s market is estimated to grow at a CAGR of 7.5 percent from US$74.9bn in 2018 to US$111bn by 2023.
The report revealed that skincare products held the most significant value share of 47.4 percent, followed by feminine hygiene products, which accounted for a value share of 16.3 percent in 2018. GlobalData predicts that the make-up category will grow at the fastest value CAGR of 9.8 percent, followed by hair care products, which is estimated to record a CAGR of 9.6 percent by 2023.
“Extensive urbanisation along with growing employment is driving consumers to opt for skin care 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,” explained Satyajit Biswas, consumer analyst at GlobalData.
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. According to GlobalData while hypermarkets and supermarkets dominate the sale of cosmetics and toiletries industry, private label products are not able to showcase a positive perception among consumers – thus only accounting for a penetration level of 4.6 percent by value in 2018.
“Discerning consumers demanding natural cosmetics and toiletries products with ‘organic’ claims will drive the growth of the industry in the coming years,” said Biswas.