China Cosmetic Products - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

China Cosmetic Products - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

The China Cosmetic Products Market size is estimated at USD 9.88 billion in 2024, and is expected to reach USD 15.72 billion by 2029, growing at a CAGR of 9.71% during the forecast period (2024-2029).

Key Highlights

• Consumers in China are becoming conscious of their external beauty and are making greater use of cosmetics products. They are increasingly incorporating cosmetics products in their daily routine, attributed to the rising concern for beauty and changing lifestyles, fuelling the market demand for cosmetics products.
• Also, the increase in the number of working women has led to an increased demand for premium products owing to growing disposable incomes. Furthermore, consumers in the market are seeking plant-based and natural botanical ingredients-based products that offer multi-functional properties due to growing consumer skepticism about the adverse effects of chemicals and synthetic ingredients on the skin.
• Consumers are also demanding functional cosmetics products that fulfill not only basic moisturizing needs but also offer professional-level skincare. As a result, the players in the market are focussing on expanding their presence in the country to capture the market's potential.
• For instance, in May 2021, Qingdao Baheal Medical Inc. launched China's first commercialization platform for functional cosmetics to facilitate such brands to enter the market through medical standards, consumer experience improvement, and precision marketing programs.

China Cosmetics Products Market Trends

Rising Demand for Natural and Clean-Label Cosmetic Products

• Asian consumers are increasingly demanding natural cosmetics products, and China is no exception. Consumers are demanding natural and clean-label products due to their high quality and the presence of fewer or no harmful ingredients. They are also demanding herbal beauty ingredients attributed to overall health and skin benefits. Many local brands are incorporating them into their product formulations, thereby supporting demand for natural cosmetics products.
• Furthermore, consumers are demanding vegan, clean-label, organic, 100% plant-derived, non-genetically modified organisms (GMO), and very minimally processed beauty products. Also, sustainability is the new topic of discussion these days wherein companies are introducing novel sustainable products that are less harmful to the environment and consumers and are welcomed wholeheartedly by consumers.
• Furthermore, companies are investing their resources to launch sustainable packaging in natural cosmetics products, further supporting the demand for natural and clean-label cosmetics products in the Chinese market.

Online Retail Stores are the Fastest Growing Distribution Channel

• The lack of brand diversity and limited access to retail stores is increasing the popularity of online retail stores in China. Also, the sales in cross-border channels, such as shipping directly rather than traditional brick-and-mortar storefronts, are leading to a surge in sales via online distribution channels.
• Consumers in China spend a significant amount of time reviewing products online and often make purchasing decisions based on recommendations from family and friends. These factors have been supporting the growth via online sales channels.
• Furthermore, e-commerce platforms in China increasingly influence consumer purchases by providing a platform for the beauty community to share shopping and product experiences. Among online channels, live streaming has rapidly grown into a major sales platform for cosmetics, often marketed to smartphone-savvy consumers who shop via this method.
• Livestreaming has almost doubled its market share from 2019 to 2020. As per the International Trade Administration (ITA), it now makes up roughly 10% of Chinese e-commerce, which will be an integral part of any successful multi-channel sales strategy.

China Cosmetics Products Industry Overview

The Chinese cosmetics products market is highly competitive, with the presence of established foreign brands along with regional players. Manufacturers are focusing on product branding and advertising strategies to garner a larger consumer base and enhance revenue nationwide. Furthermore, launching innovative product offerings with natural and organic ingredients and appealing and sustainable packaging plays an important role in attracting consumers. Some of the prominent market players in the China cosmetics products market include L'Oreal Group, Avon Products Inc., the Estée Lauder Companies Inc., Shiseido Co. Ltd, Dior, Yves Rocher International, and Oriflame Holding AG, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support