The cosmetics industry in China has registered 9.5% CAGR during 2019-2023 period where the fastest growing segment within the market is natural i.e. organic cosmetics which is growing at 14.9% during the same time period.
- Definition / Scope
- Market Overview
- Top Market Opportunities
- Market Trends
- Pricing Trends
- Technology Trends
- Regulatory Trends
- Other Key Market Trends
- Market Size and Forecast
- Market Outlook
- Distribution Chain Analysis
- Competitive Landscape
- Key Market Players
- Strategic Conclusion
Definition / Scope
Cosmetics or cosmetic products are composed of ingredients which enhance or alter the appearance of the face and fragrance or texture of the body.
Generally, cosmetics are designed for application in hair but other segments such as hair, skincare and nails are designed for application across respective body parts.
Cosmetics are composed of chemical compounds derived from natural sources which may be synthetic or artificial. At present, the structure of consumer market of Cosmetics in China is as follows:
- Skincare: The sector is the fastest growing segment and is the largest category in the cosmetics market.
- Shampoos & hair care products: The market is a niche segment in China, however the growth is decelerating.
- Makeup products: It consists mostly of enhancement items such as colour correcting (CC) and blemish balm (BB) cream. Sales of eye make-up products have recorded significant growth in recent years.
- Anti-aging products: Cosmetic products that help consumers stay looking youthful and fight aging are increasingly popular are anti-aging products that include, supplements, serum & creams.
- Cosmeceuticals: While cosmeceuticals have medical properties, they are classified as cosmetics since there is still no official definition for the term “cosmeceuticals” on the mainland Consumers are increasingly aware of products that combine cosmetic and pharmaceutical features, such as spot lightening cream, acne treatment lotion and acne ointment.
- Organic cosmetics: These contain natural or nutritional ingredients, such as aloe and vitamins.
Since past 2-5 years, China's cosmetics industry has encountered tremendous growth. At present, China is the world's second largest consumer cosmetics market after the US.
Although the growth is not exponential, China's cosmetics market is extremely lucrative. Chinese householder's rising disposable incomes the major factor in the changing trends of local consumers and will be driver in increasing demand across first tier cities such as Shanghai and Beijing.
The industry is one of the most promising field in China where domestic brands account for only 50% of the market and there is clear gap in market for foreign brands.
In addition, Chinese costumers are becoming more particular when choosing cosmetics product not only inters of quality but more importantly in terms of health and safety and this what gives edge to foreign brands in the industry.
Thus, the cosmetics market in China is yet to evolve like in western world.